Scottish winter fuel payment ‘will not be less than UK rate’

Winter fuel payments for Scottish pensioners will not be less than those being paid by the UK government south of the border, John Swinney has said.

The first minister made the announcement after Chancellor Rachel Reeves U-turned on a highly controversial cut.

The Scottish government had already said it would provide at least £100 to all pensioner households, with those on pension credit to receive up to £305 depending on age.

But in a speech in Glasgow, Swinney confirmed no Scottish pensioner “will receive less than they would under the new UK scheme”, without giving further details.

Under the chancellor’s scheme, every household with a person over the state pension age in England and Wales and an income of up to £35,000 will receive £200 for those aged up to 80 and £300 for those aged over 80.

For those with an income of more than £35,000, the money will be recouped through the tax system.

Reeves was heavily criticised for cutting universal entitlement to winter fuel payments in September last year, with only those on Pension Credit or other benefits eligible.

The Scottish government was due to take over responsibility for winter fuel payments in September – but the introduction of a new universal benefit was delayed after the UK government decision.

The Scottish government later committed to launching its own winter fuel payment by late 2025.

Under the plan, all households with a person over state pension age would receive an automatic £100 payment.

That is to increase to £203 for those under the age of 80 on pension credits, and to £305 for those older than 80.

It also includes an “opt-out” system for pensioners who are better off, meaning they can return the payment to the Scottish government or donate it to charity if they feel it is unnecessary.

During his speech, Swinney spoke about changes needed to make “fundamental change” in how public services are delivered.

The first minister acknowledged Scotland’s public services “strain at the seams”.

Swinney said that there had to be “fundamental change” in how services are delivered, and called for more focus on prevention and early intervention.

He said there would be increased use of technology and AI, and that ministers Ivan McKee and Richard Lochhead would lead on the project of “national renewal”.