Scotland to recover winter fuel payment from better-off pensioners

The Scottish government says it will no longer offer its new winter fuel payment for pensioners on a universal basis.

It said it would seek to recover funds via the tax system from pensioners earning more than £35,000 – matching the system announced by the UK government.

Scottish ministers had set out plans for a payment slightly more generous than that on offer from the UK, by £3 to £5 per household.

However, they faced criticism as payments would go to all pensioners – potentially including millionaires – rather than being targeted at those most in need.

Talks are now taking place with the UK government to match the system south of the border.

Social Justice Secretary Shirley-Anne Somerville said those receiving the payment in Scotland would be better off than their counterparts in the rest of the UK.

She said pensioner households with no-one aged 80 or over would receive £203.40.

This will rise to £305.10 for households with someone aged 80 or over.

Around 720,000 people are expected to be eligible for the funding.

Somerville said the UK government announcement last week was a “welcome, if belated” move following what she called a “a betrayal of millions of pensioners” in 2024.

She added: “Following careful consideration of the options available, the Scottish government will mirror the approach taken by the UK government.

“We will bring forward regulations to ensure that, from this winter onwards, all pensioners will receive either £203.40 or £305.10 per household, depending on age.

“We are in discussion with the UK government to extend the proposed arrangements in England and Wales to recover payments from those pensioners with an individual income of more than £35,000 through the tax system.”

The social justice secretary said the payment would be recovered automatically, meaning no-one affected would need to register with HMRC.

She claimed this would ensure people most in need would receive a higher level of support.

Somerville had said earlier in June that it was “important to have a universal system” for the payment.

The Scottish Conservatives said the decision to not make the payment universal was a “slap in the face” to pensioners.

Social security spokeswoman Liz Smith said: “This constant chopping and changing by SNP ministers is causing more needless anxiety for Scottish pensioners.

“This latest announcement means that hundreds of thousands of Scots will not have the payment even partially restored – despite John Swinney’s promise that they would.

“This latest slap in the face will not be forgotten or forgiven by the pensioners affected.”