Pension Age Winter Heating Payment: Equality Impact Assessment (EQIA)

Background

6. In July 2016 the Scottish Government launched a public consultation to support the development of a framework that would become the Social Security (Scotland) Bill. Questions in relation to WFPs and Cold Weather Payments (CWP) were incorporated into this consultation.

7. We asked, ‘Do you have any comments about the Scottish Government’s proposals for Winter Fuel and Cold Weather Payments?’ 164 respondents answered this question (82 individuals and 82 organisations).

8. Overall, a large number of respondents felt that WFP was necessary to help tackle fuel poverty and inequality and they generally welcomed the approach. Some of the themes highlighted by respondents on winter heating benefits included:

i. In general, respondents supported a broad continuation of the current eligibility criteria.

ii. Whether the delivery of WFP could be improved, particularly for those with protected characteristics.

9. The Scottish Government introduced Child Winter Heating Payment (CWHP, previously Child Winter Heating Assistance) in winter 2020, to help mitigate the additional heating costs that the households of the most severely disabled children and young people face in the winter months. Winter Heating Payment (WHP) launched in February 2023, which replaced the UK Government’s CWP.

10. On 29 July 2024, the Chancellor of the Exchequer Rachel Reeves announced the UK Government’s decision to cut WFP and restrict eligibility to those in receipt of relevant benefits.

11. On 14 August 2024, given no prior consultation on UK government’s decision and following careful consideration of the options available to Scotland, including the significant reduction in budget, the Scottish Government announced that it had taken the difficult decision to replicate the restricted eligibility of WFP for PAWHP.

12. The timing of the UK Government announcement and lack of prior consultation has meant it is not practicable the Scottish Government to deliver PAWHP this winter. This winter, 2024/2025, our proposed new benefit will be delivered by the DWP under an agency agreement with Scottish Ministers. This approach seeks to ensure that eligible individuals in Scotland continue to receive support over the winter.

13. Prior to the change in policy, we consulted on our policy proposals for the introduction of a universal benefit. The purpose of the consultation and associated stakeholder engagement was to gather views on the proposed delivery, eligibility criteria, the proposed payment format, to collect additional evidence for those who will receive PAWHP in rural and off-gas grid communities, and to identify any unintended consequences of introducing this new payment.

14. We also invited members of our Social Security Experience Panels for their views on the key policy considerations for this new benefit alongside the public consultation.

15. Within responses to the PAWHP consultation, there was broad agreement that the like-for-like introduction of the payment would be an effective way to provide financial support for older people, with 58% of individuals and 89% of organisations agreeing.

16. Similarly, there was broad support for maintaining the universal approach to eligibility for all who have reached state pension age, with 80% of all respondents in favour of this approach. However, some stakeholders disagreed, with five organisations calling for the benefit to be targeted more effectively at those in fuel poverty.

17. Given the UK Government’s late change in policy and the lack of prior consultation with the Scottish Government, to ensure payments are made to pensioners in Scotland this winter, it has not been possible to consult on the proposed changes to eligibility prior to laying these regulations.