Pension Age Winter Heating Payment: Island Communities Impact Assessment (ICIA)

PAWHP Consultation and Experience Panels

60. Prior to the UK Government decision to restrict eligibility of WFP, we consulted on our policy proposals for PAWHP as a universal payment between 23 October 2023 and 15 January 2024. The purpose of the consultation and associated stakeholder engagement was to gather views on the proposed like-for-like delivery, considering eligibility criteria, payment format, to collect additional evidence for those who will receive PAWHP and who are off-gas grid and to identify any unintended consequences of introducing the new payment.

61. We also invited our Social Security Experience Panels for their views on the key policy options for this new benefit.

62. Given the manner of the UK government’s announcement, with no prior consultation, and urgency in laying of these regulations, to ensure payments are made to pensioners in Scotland this winter, it has not been possible to consult further on the revised policy.

63. Within the consultation, several respondents noted that the challenges faced by island communities are not unique and were often shared by those living in rural areas, such as the costs associated with solid fuels and less established infrastructure and transport links.

64. Many however, acknowledged the additional challenges households face in remote rural, island, or off-gas grid communities, including the higher cost of alternative fuels, colder temperatures, and poorer housing stock. Some respondents suggested that island communities should receive a higher value payment to reflect these costs, or that the payment could be differentiated by the type of fuel that they used.

65. Others noted that housing on islands is often older, or in poorer condition, causing difficulties with heating properties and installing improvements such as insulation. Suggestions included prioritising island communities for assistance with new heating solutions such as heat pumps or local energy generation. A few suggested there should be additional planning in place to provide for these communities in the event of extreme weather or disruption which prevents access to fuel supplies.

66. Further suggestions for how PAWHP could be delivered more effectively to those communities included a higher or supplementary payment, that island residents could be prioritised to receive payments first or, an earlier payment to allow alternative fuels to be bought before winter.

67. Many advocated for the payment to be made earlier, or for greater flexibility around when the payment is made. Respondents suggested payments could be prioritised to this particular group to ensure they received the payment as soon as possible in the winter period. This would allow for them to buy the relevant fuel as early as possible in the winter period, where costs may be lower. As this group have to buy fuel in advance it would allow them to put their PAWHP towards the cost of a bulk order earlier in the winter.

68. Other respondents suggested that due to the circumstances of island or rural life, higher heating costs and weather conditions, there should be expanded eligibility for fuel payments. Suggestions included widening eligibility to cover all households that were off-gas grid, including disabled or vulnerable households, or assessing cases on an individual basis.

69. Identifying these groups within the current caseload in order to make payments earlier, or to make a payment of higher value, will require significant systems development which will not possible this winter. Due to the tight legislative timeline, any increase in value would have to be met from within the fixed Scottish Budget and would therefore require significant costing and impacting which is not feasible for delivery this winter.

70. PAWHP will be delivered this winter by the DWP under an agency agreement, however we will continue to consider these improvements for rural, island and off-grid communities as part of long-term development of the benefit after the benefit is transferred to Social Security Scotland for delivery in winter 25/26.