Scotland Ends Universal Winter Fuel Payments Amid UK Budget Cuts: Pensioners Face New Means-Testing Rules

Scotland eliminates blanket winter fuel allowances for elderly

On Wednesday, Shirley-Anne Somerville, the Social Justice Secretary, declared that due to reductions imposed by the UK government, the authorities were compelled to make this decision.

Scotland correspondent @Jenster13

Wednesday, August 14, 2024, 3:

The Scottish government has announced that it will discontinue universal winter fuel payments to all retirees.

The previously widespread advantage will now be subject to means testing, mirroring a decision by the UK government.

The launch of a new welfare program in Scotland has been postponed.

Amidst emerging reports, it has been revealed that Finance Secretary Shona Robison has issued a directive to her cabinet colleagues, instructing them to halt all non-essential expenditures in order to allocate funds for public sector salary agreements.

On Wednesday, Social Justice Secretary Shirley-Anne Somerville declared the decision, stating that the ministers were compelled to act due to the budget reductions implemented in the south.

In July, Chancellor Rachel Reeves announced that the financial assistance, ranging from £100 to £300, will be subject to means testing in England and Wales, and only individuals receiving benefits will be eligible.

The anticipated changes are projected to decrease the total of retirees receiving the benefit from 11.4 million to 1.5 million, resulting in a saving of approximately £1.4 billion for the Treasury this fiscal year.

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In Scotland and Northern Ireland, the responsibility for the payment lies at the regional level, but the strategy adopted by the UK government is anticipated to reduce Scotland's funds by as much as £160 million in the fiscal year 2024-25.

The government of Scotland planned to introduce its own Pension Age Winter Heating Payment (PAWHP) this year, replacing the existing winter fuel payment.

The implementation has been postponed to 2025-26, according to Ms. Somerville, who states that the expected reductions could reach up to 90% of the PAWHP funding.

The government of Scotland has indicated that preliminary assessments forecast a reduction of approximately 900,000 cases in Scotland for the fiscal year 2024-25, attributed to the current rate of pension credit claims. Additionally, it is anticipated that up to 130,000 individuals receiving pension credit and other means-tested benefits will receive support.

Ms. Somerville stated, "After thoroughly examining our financial situation, we find ourselves compelled to align with the UK government's decision to limit payments to seniors entitled to specific benefits."

"This decision is essential given the significant reduction in our funding and the toughest economic conditions since the devolution."

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Recent data from Government Expenditure and Revenue Scotland (Gers) shows that Scotland's deficit in public spending rose from £18 billion in the fiscal year 2022-23 to £22.68 billion in 2023-24, primarily because of reduced revenue from the North Sea.

Scotland's deficit as a share of its GDP has risen from 8.4% to 10.4%, while over the same period, the UK's deficit decreased from 5% to 4.5%.

Scotland's total revenue rose from £86.8 billion to £88.5 billion.

Public spending per capita in Scotland exceeds that of the rest of the UK by £2,417, with an average of £20,418 allocated for each individual in Scotland.

Finance Secretary Ms. Robison stated that the deficit should not be viewed as indicative of the financial management or policies of the Scottish government, but rather as a consequence of decisions made by the UK government.

She stated that the Scottish government is committed to maintaining robust public services, emphasizing: "Our main focus is on preserving public services, addressing poverty, and investing in achieving net zero and transforming our economy – these are our primary objectives."

"We still need to determine what tasks will become less of a priority, and we are currently working on that."

Ms. Robison mentioned the potential for cuts in the number of public sector employees and stated that there will definitely be restrictions on hiring.

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The Member of the Scottish Parliament for Dundee City East referenced her correspondence with fellow cabinet members, noting that only hiring in essential sectors, such as emergency services, will proceed.

She stated that the Scottish government plans to collaborate with the public sector to identify voluntary alternatives, given their policy against mandatory layoffs.

Efforts have been made to reach out to the UK government for

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