Embarrassment for Labour as Scotland reinstates winter fuel payments

Sir Keir Starmer suffered embarassment today after the Scottish Government announced it is reinstating universal energy bills help for the elderly.

The SNP-led administration at Holyrood said every pensioner in Scotland will receive a winter heating payment next year.

It has taken the action after Chancellor Rachel Reeves axed winter fuel payments for millions of pensioners across England and Wales by announcing Labour would means-test the benefit from this winter.

The Scottish Government said it had been forced to 'mitigate' decisions made by Labour at Westminster, despite 'significant pressures' on its own budget in Edinburgh.

Those in receipt of pension credit or other benefits and who have received a £200 or £300 payment this year will get the same next year through the SNP's new devolved scheme.

All other pensioners will receive a reduced payment of £100.

In August, the Scottish Government scrapped its own winter fuel payment for all pensioners.

It said the move had been forced by Ms Reeves' action at Westminster leaving a £160million funding shortfall for Scotland's equivalent benefit.

An estimated 900,000 people in Scotland were set to be cut off from accessing the winter fuel payment, which used to be universal. 

In a statement to the Scottish Parliament this afternoon, the SNP's Social Justice Secretary Shirley-Anne Somerville announced the replacement scheme.  

The PM and Ms Reeves had already been left red-faced after Scottish Labour leader Anas Sarwar vowed to reinstate the winter fuel payment for thousands of pensioners north of the border.

Ms Somerville also used her Holyrood statement to announce a further £20million for the Scottish Welfare Fund and the same amount for Warmer Homes Scotland this financial year.

'There has been change, but that change is that we are now mitigating against a Labour Government and not a Tory one,' she said.

'We have not taken this decision lightly, given the significant pressures on the Scottish Government's budget, but this Scottish Government is determined to stay true to our values.

'On our watch, we will treat people in this country with fairness, dignity and respect.

'We will not abandon older people this winter, or indeed any winter, and we will continue to protect our pensioners from the harsh reality of a UK Labour Government.'

Ms Somerville was accused by Scottish Conservative social security spokeswoman Liz Smith of 'hoodwinking' pensioners by making the announcement seem like a return to the full payment.

But Ms Somerville said: 'We have returned to a universal payment for pensioners, and that is an important principle we are determined to hold to.'

The minister added that Scots will see the benefit as 'an investment in our people'.

She also sparred with Labour social justice spokesman Paul O'Kane, who asked if the increase in spending coming to Scotland through the Barnett formula as a result of UK Government decisions had allowed the change.

'I think as well as asking some questions, which he is obviously right to do, Mr O'Kane and his party should come here with a bit of humility and a bit of an apology for Scotland's pensioners for putting us in this position in the first place,' the minister said.

Earlier this month, Mr Sarwar called for redesigned payments and said Scottish Labour would lower the bar for getting them if it wins the 2026 Holyrood election.

On 29 July, Ms Reeves announced - from this winter - retirees in England and Wales will only get winter fuel payments if they receive pension credit or certain other benefits.

The Chancellor insisted the move was necessary to help fill a £22billion 'black hole' she claimed the previous Tory government left in this year's spending plans.

But Whitehall estimates have suggested that 100,000 extra pensioners will be pushed into poverty as a result, while critics claimed the 'cruel' move will force some pensioners to go cold this winter.