The UK Labour Government’s announcement to cut winter fuel payments to older people “will push tens of thousands of low income pensioners in Scotland further into poverty, and puts some of the poorest older people at greater risk of ill-health and burgeoning debt, ” state the charity Age Scotland.

In Scotland where colder, wetter winters and high fuel bills already cause hardship to many households, the decision by the UK Labour Government to means test pensioners will hit them hard.

During the General Election it was well known that there was a ‘blackhole’ in the government’s finances, and covered in this article in The Orkney News: #GE24 Manifesto Pledges & ‘the conspiracy of silence’.

In that article According to the Resolution Foundation there are big “economic uncertainties that the next government may need to confront, including a possible £12 billion black hole in the public finances from a productivity downgrade, higher market interest rates and infected-blood compensation.”

The report goes on to further itemise other costs awaiting the next government which ‘could increase the size of the fiscal black hole to around £33 billion.’

James Smith, Research Director at the Resolution Foundation, said:

“Whoever wins the election could be confronting a fiscal hole of £12 billion, if today’s uncertainties turn into bad news after the election. And if the next government wants to avoid a fresh round of austerity, that black hole could rise to over £33 billion.”

First Minister of Scotland, John Swinney also raised the issue of the economic blackhole during the election but Labour continued to make promises to the voters. In some of the first decisions made by the new Labour Government the choice has been made to hit some of the most vulnerable in our communities.

In her statement Chancellor of the Exchequer, Rachel Reeves announced around £1.5 billion will be saved per year by targeting Winter Fuel Payments. Only those who are receiving Pension Credit, Universal Credit, Income Support, income-based Jobseeker’s Allowance and income-related Employment and Support Allowance will continue to receive Winter Fuel Payments.

Age Scotland state that  the decision to means test the winter fuel payment – which is worth up to £300 a year for those of state pension age means that anyone who does not receive, or claim, pension credit will no longer get the payment aimed at helping older people with fuel bills over the coldest months.

Katherine Crawford, chief executive of Age Scotland, said:

“This move will effectively take money away from some of the lowest income pensioners in Scotland. There are currently more than 150,000 pensioners living in poverty in this country, and we know that many more are living on incomes just above the pension credit threshold. They will now miss out on a payment which could help them heat their homes and stay warm over winter.

“I would urge the UK government to look again at this decision, which affects older people who are already struggling with the high cost of living and will now face being worse off at a time they desperately need support.

“Already we are getting calls to our helpline from older people who are distressed by the announcement and worried about what lies ahead. I would call on anyone in that position to get in touch with our free helpline on 0800 12 44 222 where our advisers can carry out a full benefits’ check to ensure that you are getting everything you are entitled to.

“We know that around 123,000 pensioners in Scotland who are eligible for pension credit are not claiming it – and they are some of the people who are going to be worst affected when the payment is withdrawn. Just 140,000 pensioners do claim pension credit, which leaves many thousands losing out who really cannot afford to do so.   

“The winter fuel payment is due to be devolved to the Scottish Government and our hope is that it will be restored as a universal benefit, particularly in light of the fact that Scotland does generally experience worse weather than other parts of the UK and more than half of those who receive it use it as an important part of winter budgeting. Keeping or reinstating the winter fuel payment will also ensure that money is going to those who need it most, when they need it most.” 

Fiona Grahame