Swinney defends universal winter fuel payment U-turn
On Wednesday, the Scottish Government announced that only pensioners with an income of less than £35,000 would receive financial help.
While those with higher incomes will still receive the payment, they will be required to repay the money via their tax return or PAYE.
Age Scotland estimates that around 160,000 households will lose out.
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Less well-off pensioners will receive £203.40 if they are under 80, and £305.10 if they are older — marginally higher amounts than the £200 and £300 paid in England and Wales.
Asked about the decision in Holyrood on Thursday, the First Minister said: 'What we have done is we have taken an approach which reflects the system that we believe will make the greatest impact on tackling the impact of fuel costs on older people within our society.
'That has resulted in us taking the steps that we have set out to make sure that we can target and focus the resources that are available to us and to enable us to utilise the resources that are under the control of the Scottish Government as effectively as we can to meet our wider priorities within the public works.'
The announcement came only weeks after Mr Swinney argued that the winter fuel payment should be restored to 'all pensioner households'.
Speaking ahead of a meeting with Sir Keir Starmer on 23 May, he called for a 'national mission' to raise living standards and a 'restoration' of the benefit 'so all pensioners get a payment'.
Asked about the U-turn, Mr Swinney said: 'Since then, the UK Government has changed its position, and it has set out an approach which has got financial implications for the Scottish Government, and we have responded accordingly.'
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The decision to originally means-test the Winter Fuel Payment — stripping it from around 10 million better-off pensioners — was one of the new Labour Government's first and most controversial policies.
At the time, Chancellor Rachel Reeves justified it as a necessary 'hard choice' to save about £1.5 billion a year.
With the Winter Fuel Payment being devolved, that prompted the Scottish Government to announce its own benefit, the Pension Age Winter Heating Payment.
Those on certain means-tested benefits were due to receive £200, or £300 for over-80s, while all other pensioner households would receive a flat £100.
Last week, the Chancellor confirmed that around three-quarters of pensioners in England and Wales — those on incomes up to £35,000 — would again receive a payment of £200, or £300 if they are over 80, from this winter.
The U-turn by the Treasury meant that thousands of Scottish pensioner households not on Pension Credit but with a modest income were in line for just £100 — whereas if they lived in England or Wales, they would get £200 or £300 if over 80.
In a speech on Monday, the First Minister confirmed the Scottish Government's benefit would at least match that proposed by the UK Government.
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