John Swinney is “actively considering” the reintroduction of universal winter fuel payments in his December Budget. Government sources said they are mulling over the move after Chancellor Rachel Reeves slashed the payment for around 90% of older Scots.
Reeves announced the payment of up to £300 for pensioners would be mean-tested to help fill a £22bn black hole. The move was met with fury and is blamed for Scottish Labour sliding in the polls.
However, the SNP Government could be set to pile further misery on Labour. The benefit, although devolved to Holyrood, will be administrated by Whitehall this winter, meaning the cut will go ahead.
But insiders say the Swinney could use the Budget, which covers 2025/26, to restore the universal payment in winter next year. Restoration would come into effect months before the Holyrood 2026 election, which is a two horse race between Labour and the SNP.
The cost would be around £160m and a Government source said: “It is something we are actively considering.”
Ministers are expecting over £3bn extra in funding as a result of Reeves’ Budget and could fund the policy from this cash injection.
At First Minister’s Questions last week, Swinney pointedly said there would be a £10 billion budget surplus over three years.
An SNP source said if such a surplus was evident at a UK level it would also apply to the devolved budgets.
SNP Minister Ivan McKee, who is leading on Budget negotiations, hinted at the weekend the means-testing could be axed: “That decision that was made by the UK Government earlier in the summer obviously took significant amount of money out of the pot we had available to provide that payment, with clarification coming through now on these numbers for this year and indeed for next year.”
Pressed again, the SNP minister said: “I’m not going to commit to that on this programme, the Budget will be along in a few weeks and you can find out where we are but it’s absolutely something we’re considering along with all the other things you’ve asked us to spend money on this morning.”
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