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.

Although Sarwar has said the UK Labour government’s new criteria is too restrictive, he has stopped short of backing SNP calls for a UK government U-turn.

He said: “For months I have said that the eligibility criterion of pension credit is too low and called for a Scottish solution to this issue.

“That’s why Scottish Labour will take back this devolved power from the DWP, reinstate the winter fuel payment, and deliver a fairer system to ensure that everyone who needs support gets it."

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.