DWP will pay new version of Winter Fuel Payment to 130,000 low-income pensioners

The DWP will take on the Pension Age Winter Heating Payment this year after Scotland was forced to make the same cuts to its new scheme

The Department for Work and Pensions is to pay a new Pension Age Winter Heating Payment to around 130,000 people. The scheme is Scotland's replacement for the Winter Fuel Payment and was originally intended to go to all pensioners north of the border.

However, following recent cuts made to the Winter Fuel Payment - which will now go only to those who are on Pension Credit and some other means-tested benefits - ministers at Social Security Scotland announced they will need to follow the same restrictions this year because funding for their own scheme has been reduced by as much as £150 million. As a result, DWP will take on responsibility for delivering the payments, it said.

Originally, around 900,000 people in Scotland would have received the Pension Age Winter Heating Payment but this has now been trimmed to "between 110,000 to 130,000 eligible people who have reached State Pension age and are in receipt of relevant benefits this winter."

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These eligible benefits are Pension Credit, Universal Credit, Income Support, income-based Jobseeker's Allowance or income-related Employment and Support Allowance, along with Working Tax Credit and Child Tax Credit.

The Scottish Government said: "Pension Age Winter Heating Payment (PAWHP) will replace the UK Government's Winter Fuel Payment (WFP) in winter 2024. This new benefit will be delivered by the Department of Work and Pensions (DWP) in 2024/2025, on behalf of the Scottish Government.

"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, our replacement for Winter Fuel Payment. Given the short notice of the change in policy it is necessary for payments to be made in Scotland this winter by the Department for Work and Pensions on behalf of the Scottish Government to ensure there is no gap in provision of support for vulnerable pensioners in Scotland this year."

Payments will be £200 or £300 depending on age and circumstances during a qualifying week in September when entitlement is established. An individual or a benefit household under the age of 80 will receive £200, and an individual or a benefit household with a member aged 80 or over will receive £300.

The final number who receive the cash in Scotland will depend on additional take-up of Pension Credit. Social Security Scotland says it will take back responsibility for its version of the fuel payment in 2025/2026 and is considering whether it will be universally paid to all pensioners or targeted at those who are in fuel poverty.

The Scottish Government estimates that 15 per cent of its nation's pensioners (150,000) are living in fuel poverty.

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