The Pension Age Winter Heating Payment (PAWHP) will replace the UK Government's Winter Fuel Payment (WFP) in Scotland in winter 2024, the Scottish Government said in a Fairer Scotland Duty assessment published on 26 September 20241. The new benefit will be delivered by the Department for Work and Pensions (DWP) on behalf of the Scottish Government in 2024/25, ahead of Social Security Scotland taking responsibility for delivering it in 2025/261.
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 approach1.
"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 Payment"
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.
| Household | Payment |
|---|---|
| Under 80 | £200 |
| Aged 80 or over | £300 |
The Scottish Government said the payment 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. It said 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.
StepChange, an independent debt charity, states that from winter 2025/26 Scotland will introduce the Pension Age Winter Heating Payment2. It also states that for winter 2024/25 the DWP has committed to make payments this winter to eligible pensioners in Scotland on terms equivalent to Winter Fuel Payments in England and Wales2. For 2024/25, StepChange says people in England and Wales can get the Winter Fuel Payment if they were born before 23 September 1958 and receive one of Pension Credit, Universal Credit, income-related Employment and Support Allowance, income-based Jobseeker's Allowance or Income Support2. It says people aged 66 to 79 will get £200 per household, rising to £300 for people aged 80 or over2.
Why it matters for households
Pensioners in Scotland who are not in receipt of the relevant benefits will not receive the Pension Age Winter Heating Payment this winter, mirroring the restricted eligibility now applying to the Winter Fuel Payment in England and Wales1. The Scottish Government estimates the payment will reach between 110,000 and 130,000 people, a figure that depends on Pension Credit take-up1. It cites an estimate that in 2019/20 up to £1.7 billion of Pension Credit was not received by people eligible for it1.
The Scottish Government's assessment states that older households have a higher fuel poverty rate (36%) than families (27%), and higher extreme fuel poverty (24%) than families (10%)1. It 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.
Separately, the Warm Home Discount Scheme reopens in October 2024, offering £150 off electricity bills, according to StepChange2. It states that the Household Support Fund is extending for another six months following a government announcement in September 20242. StepChange lists the Energy Price Guarantee, the £900 one-off Cost of Living Payment for those on means-tested benefits, the Pensioner Cost of Living Payment and the £150 Disability Cost of Living Payment as schemes no longer available in winter 20242.
What happens next
The Pension Age Winter Heating Payment will be delivered by the DWP in 2024/25, with payments in Scotland expected to begin a day after England and Wales1. Social Security Scotland is due to take responsibility for delivering the payment in 2025/261. The payment is set out in the Winter Heating Assistance (Pension Age) (Scotland) Regulations 20241.
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