Labour’s Winter Fuel Payment cut will blow estimated £160 million out of the Scottish Government budget
The Scottish Government has revealed that the Labour government’s cut to the Winter Fuel Payment will blow an estimated £160 million out of the Scottish Government budget.
The Chancellor Rachel Reeves announced the move yesterday to deal with a £22 billion deficit from the Conservatives – claims hotly disputed from the opposition benches – and that meant cuts.
It means that the government will continue to provide Winter Fuel Payments worth £200 to households receiving Pension Credit or £300 for households in receipt of Pension Credit with someone aged over 80.
Social justice secretary Shirley-Anne Somerville slammed the move as not just harmful to pensioners in Scotland but also contrary to the previously promised better working relationship with Holyrood.
She said: “The Chancellor’s decision to means test Winter Fuel Payment is disappointing and was made without consultation or discussion with the Scottish Government, which contrasts with the UK Government’s commitment to have a better working relationship.
“We are urgently considering the financial impact of the UK Government’s cut to Winter Fuel Payment in England and Wales, and what this means for our replacement, Pension Age Winter Heating Payments in Scotland.
“The Scottish Government is committed to tackling fuel poverty and has consistently supported vulnerable households through a range of actions.”
The Treasury was asked
The Chancellor told the Houses of Commons: “The scale of the situation we are dealing with means incredibly tough choices.
“So that is why, I am making the difficult decision that those not in receipt of Pension Credit will no longer receive the Winter Fuel Payment from this year onwards.
“The government will continue to provide Winter Fuel Payments worth £200 to households receiving Pension Credit or £300 for households in receipt of Pension Credit with someone aged over 80.
“Let me be clear: this is not a decision I wanted to make. Nor is it one that I expected to make. But it is a necessary and urgent decision I must make – It is the responsible thing to do to fix the foundations of our economy and bring back economic stability.”