Pension Age Winter Heating Payment: Business and Regulatory Impact Assessment (BRIA)

Rationale for Government Assistance

16. The rationale for introducing PAWHP is to provide older people on low incomes with additional support to meet increased heating costs during the winter, with the intention of helping them to heat their homes for longer.

17. These households are likely to have a greater need to keep their home warm due to being older and it being harder for them than younger people to regulate their body temperature.^[1] Cold weather can be particularly dangerous for those with pre-existing health conditions. Older people are also more likely to live in ‘colder’ and ‘harder to heat homes’,^[2] spending more time indoors according to a recent survey carried out by Age Scotland.^[3]

18. The policy closely aligns with the Scottish Government’s Wealthier and Fairer Strategic Objectives, but also links with the Scottish Governments key priorities to tackle fuel poverty, ensuring financial security in older age as well as supporting people through the cost-of-living crisis

19. The policy will contribute towards the following National Outcomes:

• Economy: We have a globally competitive, entrepreneurial, inclusive and sustainable economy. This policy will provide continued investment in financial support for older people on low incomes in Scotland.
• Communities: We live in communities that are inclusive, empowered, resilient and safe. This additional support recognises older people have particular needs in relation to heating and will help towards ensuring older people on low incomes are living in a warm home.
• Health: We are healthy and active. The policy may reassure vulnerable older people on low incomes that they can afford to maintain a safe temperature at home during the winter, reducing the health risks due to living in cold environments.
• Human Rights: We respect, protect and fulfil human rights and live free from discrimination. Social Security is a human right and through provision of a new benefit we help progress the support that is available.
• Poverty: We tackle poverty by sharing opportunities, wealth and power more equally. The policy intention of PAWHP is to provide financial support to people of pension age on low incomes who have a greater need for heat during the winter months. PAWHP in particular specifically targets households who are on low incomes and, due to their age, may require an enhanced heating regime, and therefore may incur greater energy costs.