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

Summary and Recommendation

73. The Scottish Government’s primary consideration is always about providing the right level of financial support to those who are entitled to it. However, it is also important to consider deliverability, budget and to what extent changes might result in increased spending.

74. As noted, the Scottish Government will receive funding from the UK Government through the Block Grant Adjustment. The UK Government’s approach to restrict eligibility to WFP has a significant financial impact, reducing the Block-Grant Adjustment associated with devolution of the UK’s WFP by an estimated £150 million in 2024-25, over 80% of the cost of the Scottish Government’s new replacement benefit, PAWHP.

75. Based on affordability and deliverability considerations laid out above and working towards our goal of ensuring financial security for older people,^[7] the Scottish Government intends to introduce PAWHP in equivalent terms to WFP for winter 2024/2025, with eligibility restricted to those in receipt of relevant eligible benefits.

76. We are focussed on delivering PAWHP safely and securely and ensuring pensioners on low incomes continue to receive this vital support each winter.