Sarwar pledges to expand winter fuel payment

Scottish Labour will expand eligibility for the winter fuel payment if they form the next Scottish government, leader Anas Sarwar has said.

Under the party’s plans, all pensioners would receive a payment via a devolved benefit, though it would be tapered so that the wealthiest households received less.

The UK government has changed the rules so that only those in receipt of Pension Credit or other benefits get the winter fuel payment.

The Scottish government, which had been due to introduce a replacement benefit north of the border in April, said Labour’s move left it £150m short and with no choice but to push those plans back until late 2025.

About 900,000 fewer pensioners in Scotland are expected to get the benefit after universal coverage was scrapped.

Sarwar said his proposals would “deliver a fairer system that guarantees everyone who needs support gets it”.

He said all pensioners would receive the benefit – which is currently either £200 or £300 – without having to apply, but that better off Scots would pay some of the it back.

“A good way of thinking about it is how child benefit currently operates,” the Scottish Labour leader told BBC Scotland.

“(It is) widely viewed as a universal payment for everyone, but when it goes beyond a certain income threshold a taper is then applied.”

Sarwar reiterated his stance that the Pension Credit criteria for the winter fuel payment was too low as he called for a “Scottish solution” to the issue.

However, he has stopped short of backing SNP calls for a UK government U-turn.

The Scottish Labour leader highlighted several areas where he had taken a different approach to UK Labour – such as his willingness to join striking workers on picket lines.

First Minister John Swinney has been urged to find extra funding to provide universal coverage for winter fuel payments in his budget for 2025-26, which is due to be announced on 4 December.

He indicated that it would cost about £190m to fund the new Holyrood-managed equivalent, the Pension Age Winter Heating Assistance.

Prime Minister Sir Keir Starmer has previously defended his “tough” decision to cut winter fuel payments.

He also issued a “guarantee” that an increase in the state pension – which is set to rise by £460 per year in April – would “outstrip” losses for those who will not receive the winter fuel payment, which is either £200 or £300.

However, the state pension increase will be spread over the year from next April, whereas the winter fuel payment is usually paid in November or December.

UK Environment Secretary Steve Reed said Scottish Labour had “made their choice” and it was part of devolution that there would be differences across the UK.

There are a few elements at play when it comes to this announcement.

For one thing, Anas Sarwar has always said he’s uncomfortable with the UK Labour government’s criteria around who gets a winter fuel payment. He thinks it’s too restrictive.

Also, after Keir Starmer’s rough start upon entering Downing Street, he’s perhaps made the calculation that a bit of distance between him and UK Labour is no bad thing.

Indeed, in a huddle with press this morning, Sarwar was keen to stress areas where he’s taken a different approach (such as joining workers on picket lines).

Remember the context here: there’s a Holyrood election in 2026, and Scottish Labour won’t want to be associated with any UK Labour unpopularity around that time.

Finally, there’s a bit of a challenge to the Scottish government in all of this.

As the budget approaches, there are rumblings that Scottish ministers could throw some extra cash towards pensioners.

In the wake of today’s announcement Anas Sarwar can claim he made the first move.

But there’s no denying this also comes with an element of awkwardness – as Scottish Labour are acknowledging that the UK government’s policy on winter fuel payments falls short.