UK Government restricts eligibility for Winter Fuel Payments

The Scottish Government has confirmed that Pension Age Winter Heating Payment (PAWHP) will replace the UK Government's Winter Fuel Payment (WFP) in winter 2024, and that eligibility will be restricted to pensioners receiving relevant benefits¹. In a Fairer Scotland Duty assessment published on 26 September 2024, the Scottish Government said the UK Government's decision to restrict eligibility for Winter Fuel Payments left Scottish Ministers with no choice but to mirror this approach in Pension Age Winter Heating Payment¹.

The payment will be delivered by the Department for Work and Pensions (DWP) in 2024/2025 on behalf of the Scottish Government, ahead of Social Security Scotland taking responsibility for delivering it in 2025/26¹. The Scottish Government said the short notice of the change made DWP delivery necessary to ensure there was no gap in support for vulnerable pensioners in Scotland this year¹.

Payments are set at £200 or £300 depending on the age of those receiving the relevant eligible benefits during the qualifying week in September, when entitlement is established¹. An individual or benefit household under the age of 80 will receive £200, and an individual or benefit household with a member aged 80 or over will receive £300¹. The relevant benefits are Pension Credit, Universal Credit, income-related Employment and Support Allowance, income-based Jobseeker's Allowance, Income Support, Working Tax Credit and Child Tax Credit¹.

The Scottish Government estimates the policy will lead to an investment of approximately £30 million in winter 2024, providing support to between 110,000 and 130,000 eligible people, dependent on Pension Credit take-up¹. Payments in Scotland are expected to begin a day after England and Wales¹. The changes to WFP eligibility will reduce the Block-Grant Adjustment associated with devolution of the UK's WFP by an estimated £150 million in 2024-25¹.

The assessment also notes that it is estimated that in 2019/20, up to £1.7 billion of Pension Credit was not received by people eligible for it¹. The Scottish Government estimates that 15% of pensioners (150,000) over state pension age were living in relative poverty after housing costs in Scotland between 2020 and 2023¹. Fuel poverty statistics cited in the assessment show older households have a higher fuel poverty rate (36%) than families (27%), and higher extreme fuel poverty (24%) than families (10%)¹.

Why it matters for households

From winter 2024, pensioners in Scotland who are not in receipt of one of the listed benefits will not receive PAWHP, mirroring the restricted WFP position elsewhere in the UK¹. Entitlement is established during the qualifying week in September, and the amount depends on age, at £200 for those under 80 and £300 where a household member is 80 or over¹. The Scottish Government expects between 110,000 and 130,000 people to receive the payment this winter, a figure that depends on Pension Credit take-up¹. The assessment records that up to £1.7 billion of Pension Credit went unclaimed in 2019/20¹, and that one in seven people over state pension age were living in poverty in Scotland¹.

What happens next

PAWHP will be delivered by the DWP on behalf of the Scottish Government in 2024/2025, with Social Security Scotland taking responsibility for delivering the payment in 2025/26¹. The regulations underpinning the payment are the Winter Heating Assistance (Pension Age) (Scotland) Regulations 2024¹. Payments in Scotland are expected to begin a day after England and Wales¹.