Pension Age Winter Heating Payment: Letter to Social Justice and Social Security Committee (SJSS)

Letter to SJSS Committee Providing Revised Regulations on Winter Heating Assistance (Pension Age) (Scotland)

Cabinet Secretary for Social Justice

Shirley-Anne Somerville MSP

T: 0300 244 4000
E: scottish.ministers@gov.scot

By email to: sjss.committee@parliament.scot

25 September 2024

Dear Collette

I write to inform you that the Scottish Ministers have shared the revised Winter Heating Assistance (Pension Age) (Scotland) 2024 regulations with the Scottish Commission on Social Security (SCoSS).

As outlined in my letter of 16 August, the UK Government announced in July it’s decision to move away from a universal Winter Fuel Payment and to restrict entitlement to those in receipt of Pension Credit and other means-tested benefits from this winter. This decision was of course taken without consultation or discussion with the Scottish Government and it has had devastating consequences for our planned launch of Pension Age Winter Heating Payment, reducing the Block-Grant Adjustment for our devolved payment by over 80%.

Having carefully considered the options, given the significant impact of this decision, the wider cuts being imposed by the Chancellor of the Exchequer on our budgets and to enable DWP to make payments in Scotland, the UK Government's decision to restrict eligibility for Winter Fuel Payments is extremely disappointing and has left Scottish Ministers with no choice but to mirror this approach in Pension Age Winter Heating Payment, our replacement for Winter Fuel Payment. Given the short notice of the change in policy it is necessary for payments to be made in Scotland this Winter by the Department for Work and Pensions on behalf of the Scottish Government to ensure there is no gap in provision of support for vulnerable pensioners in Scotland this year.

In my previous letter I noted that we intended to defer legislating for Pension Age Winter Heating Payment until 2025, and that the UK Government would instead legislate for and deliver an equivalent payment for pensioners in Scotland this winter. Following further discussion with the UK Government, it became clear that they are unable to progress their original offer to legislate in the UK Parliament. Therefore, the only feasible route to doing so now is under Pension Age Winter Heating Payment (PAWHP) regulations made in the Scottish Parliament.

An Agency agreement is being prepared specifying the arrangements whereby DWP will make these payments. To enable this agreement an Order under section 93 of the Scotland Act 1998 (an agency arrangements order) is required specifying the functions and associated processes to be exercised by UK Ministers on the Scottish Ministers’ behalf. We anticipate this to be laid in both Parliaments in early October.

Under the Pension Age Winter Heating Payment regulations, revised to reflect the changes made to the UK Government's Winter Fuel Payments, a person will be eligible if, during the qualifying week, they are of state pension age, and are receiving one of the following relevant benefits:

• Pension Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Universal Credit
• Working Tax Credits or Child Tax Credits (where the award is not less than £26 in respect of the tax year 2024-25)

Unfortunately, given the extraordinary circumstances, and facing significant time pressures to pass legislation, due to the decision taken by the UK Government, it has not been possible to give SCoSS the time needed to thoroughly review the revised regulations and provide a scrutiny report and recommendations before they are laid in Parliament. Nevertheless, before the parliamentary process begins, I have provided SCoSS with a copy of the updated Winter Heating Assistance (Pension Age) (Scotland) Regulations 2024 and have asked that they carry out a period of scrutiny as they see fit. I have asked my officials to work closely with the Commission on any recommendations they wish to submit after the regulations have been laid. I provide a copy of the draft regulations in Annex A, for your reference.

We are continuing to take action to support older people and tackle poverty. This includes investment in our Council Tax Reduction Scheme and free bus travel for all older people over the age of 60 in Scotland and delivering our Winter Heating Payment which, in contrast to the UK Governments Cold Weather Payment, guarantees a reliable annual payment of £58.75 to people on low-incomes, including those pensioners in receipt of Pension Credit each winter. We are providing over £2 million from our Equality and Human Rights Fund, supporting older people’s organisations to deliver work focused on tackling inequality and enable older people to live independent and fulfilling lives. This is in addition to a wider range of initiatives to mitigate fuel poverty, such as our energy efficiency delivery programmes – Warmer Homes Scotland and Area Based Schemes – which have supported over 150,000 households living in, or at risk of fuel poverty in the past decade, as well as our Islands Cost Crisis Emergency Fund which helps island authorities support their island communities through cost-of-living pressures. The Minister for Climate Action has also secured the agreement of energy suppliers to participate in a working group aimed at co-designing a social tariff.

An overview of the changes made to these regulations since initial SCoSS scrutiny is provided in Annex C. I also provide the Scottish Government response to the recommendations and observations of the original scrutiny report which remain applicable to the new revised regulations, outlined in Annex B.

I am grateful to SCoSS members for the helpful and constructive way in which they have engaged with officials, for the report itself and in the preceding scrutiny process.

I look forward to appearing before Committee to give evidence on the regulations in due course.

Shirley-Anne Somerville