PAWHP eligibility restricted to pensioners on qualifying benefits for winter 2024/25

Scottish Ministers have concluded that eligibility for the Pension Age Winter Heating Payment (PAWHP) must be restricted to pensioners in receipt of the relevant qualifying benefit so that payments can be made this winter, according to an equality impact assessment published on 26 September 2024¹. The assessment covers the Winter Heating Assistance (Pension Age) (Scotland) Regulations 2024¹.

The Scottish Government estimates that between 110,000 and 130,000 pensioners will be eligible for payment in Scotland this winter, depending on Pension Credit take-up¹. It says the UK Government's decision to restrict eligibility will reduce the number of people in Scotland entitled to a payment by roughly 900,000 compared with what would have applied under universal eligibility¹. PAWHP will mirror the UK Government's means-tested Winter Fuel Payment eligibility¹.

The assessment states that the UK Government's changes will reduce Scotland's Block-Grant Adjustment, associated with devolution of the UK's Winter Fuel Payment, by an estimated £150 million in 2024-25, described as over 80% of the cost of the Scottish Government's replacement benefit¹. It adds that the late decision by the UK Government and the lack of prior consultation meant it would not be practicable to consider alternative eligibility criteria and still make payments this winter¹.

This winter, PAWHP will be delivered in Scotland by the Department for Work and Pensions under an agency agreement with Social Security Scotland¹. From winter 2025/26 it will be delivered by Social Security Scotland¹. The assessment describes PAWHP as intended to be an automatic payment for the vast majority of clients, with an application required only in specific circumstances, and says payments can be made into a UK bank or building society account or into someone else's account that they can access¹.

The assessment notes that take-up of Pension Credit is the lowest of all benefits, with caseload take-up of 66%, and that Scotland's proportion of Pension Credit claimants is marginally higher than the rest of the UK at about 12.8% against about 12%¹. It also sets out that 15% of pensioners (150,000) were living in relative poverty after housing costs in 2020-23, and 17% (170,000) before housing costs¹. Older households have a fuel poverty rate of 36%, against 27% for families¹.

Why it matters for households

Pensioners in Scotland who receive the relevant qualifying benefits, principally Pension Credit, are the group the Scottish Government expects to receive PAWHP this winter¹. Pensioners whose income or circumstances leave them above the qualifying benefit thresholds are not expected to receive it, and the assessment acknowledges that some of these people may still face financial difficulties¹. The Scottish Government estimates the eligible group at 110,000 to 130,000, a figure that moves with Pension Credit take-up¹.

The payment is separate from Winter Heating Payment, which the assessment says guarantees a reliable annual payment of £58.75 to people on low incomes, including pensioners receiving Pension Credit, each winter¹. Pensioners receiving Pension Credit will be eligible for both¹. The assessment also notes that pensioners in receipt of Pension Credit will receive an additional low income benefit not available to other Winter Heating Payment recipients, such as those below pension age on low incomes with a young child or a disabled household member¹.

What happens next

PAWHP will be delivered by the DWP on behalf of Scottish Ministers in winter 2024/25, then by Social Security Scotland from winter 2025/26 onwards¹. The Scottish Government has said it intends to make it a legal requirement to annually up-rate all devolved benefits, including its winter heating payments, an estimated investment of at least £6 million for 2025-26 rising to at least £12 million in 2029-30 according to Scottish Fiscal Commission forecasts¹. The assessment states the Cabinet Secretary for Social Justice has written to the Secretary of State for Work and Pensions asking for action to increase Pension Credit take-up and to move forward with plans for a social energy tariff, and that the First Minister wrote to councils and COSLA seeking urgent assistance to promote Pension Credit take-up¹.