The Scottish Government is planning to replace Winter Fuel Payments with a newly distributed lump sum to be expected later this year.
Scottish Government Proposes State Pension Age Winter Heating Payment (PAWHP) for Elderly Citizens
Pension Age Winter Heating Payment (PAWHP) is set to be provided on a like-for-like basis to its Department for Work and Pensions (DWP) counterpart and paid to everyone over the State Pension age every year.
A newly issued consultation highlighted proposals on delivery of the payment, eligibility and suggested payment rates — related to age and household circumstances. Under PAWHP, anyone in Scotland who would currently be qualified to receive the Winter Fuel Payment would continue to get the same support level, but paid by Social Security Scotland.
The Scottish Government has also asserted that payments will continue to be tax-free and non-means tested. It also stated: “Based on estimations of eligible claimants, PAWHP will be an investment of around £180 million in the first year (2024/25), providing support to over one million eligible people.”
Winter Fuel Payments are in most cases paid automatically to qualifying households during November, December and January right before the coldest weather start. Proposals for PAWHP will follow the same payment schedule and automation.
WFP eligibility is related to the State Pension age of people living in each household — over 66, or over 80 — and their circumstances — single, couple, both of the same age, or mixed ages — during the September qualifying week — this is also expected to remain the same.
Payments
The GOV.ScOT guidance explains that payment rates will be £100, £150, £200 or £300 for individuals, which results in a standard household of two generally getting a total of £200 or £300.
It says: “We intend to maintain the current values of payments. That means, generally, that a typical household where the oldest person is under 80 will receive £200 and a household containing a person aged 80 or over will receive £300. The exception to this is where someone is in residential care.”
Updated Household Eligibility Criteria for Payment Rates
Household Circumstances | Aged 66-79 | Aged 80+ |
You qualify and live alone (or live with someone who does not qualify for PAWHP) | £200 | £300 |
You qualify and live with someone under 80 who also qualifies | £100 | £200 |
You qualify and live with someone 80 or over who also qualifies | £100 | £150 |
You qualify, live in residential care and you do not receive certain benefits (e.g. Pension Credit) | £100 | £150 |
You qualify, live in residential care and you do receive certain benefits (e.g. Pension Credit) | £0 | 0 |
Residential Care
For people living in residential care, the eligibility will follow the similar rules as the Winter Fuel Payment. The guidance explains: “People who are living in residential care during the qualifying week, and the period of 12 weeks immediately before the qualifying week, do not qualify for the ‘full’ rate of Winter Fuel Payment.”
People in residential care who do not get specific benefits listed in the table are eligible for a Winter Fuel Payment of either £100 if they are aged 66 to 79 or £150 if they are 80 or over — this will be the same rate for Pension Age Winter Heating Payment.
According to the guidance, this is due to sharing the accommodation with other individuals who are also entitled to the payment and are responsible for a share of the heating payments.
It continues: “Those who are living in residential care and receiving one of the specific benefits receive no payment.”
It explains: “This is because historically people living in a care home and in receipt of an income-related benefit have received public funding for their care and accommodation costs including heating through funding from the local authority.
“As this is still the case for the vast majority of people receiving Pension Credit, the WFP is not payable.”
Other Exclusions
The proposals also include other exclusions which currently apply to the Winter Fuel Payment that will also apply for PAWHP and would result in no award.
This includes:
- If the person has been in hospital for more than a year.
- If the person is imprisoned throughout the qualifying week.
The Scottish Government highlighted that similar to those in residential care, public funding will include the costs of heating the accommodation and therefore no extra support is demanded.