The once universal benefit will now be replicated by a means-tested policy from the UK government.
There has also been a delay in the introduction of a replacement Scottish benefit.
It comes amid rumors that Cabinet colleagues have received a letter from Finance Secretary Shona Robison ordering them to freeze any wasteful spending in order to assist fund public sector wage arrangements.
The move was announced on Wednesday by Social Justice Secretary Shirley-Anne Somerville, who claimed that officials had “no choice” but to act because of the cuts made south of the border.
The payment, which is estimated to be worth between £100 and £300, would only be sent to people who qualify for benefits in England and Wales, according to Chancellor Rachel Reeves’ announcement in July.
It is anticipated that the Treasury will save approximately £1.4 billion this fiscal year by reducing the number of pensioners receiving the payment from 11.4 million to 1.5 million.
Although Scotland and Northern Ireland have devolved authority over the payment, the UK government’s strategy is predicted to result in a £160 million reduction in Scottish funding in 2024–2025.
This year, the Pension Age Winter Heating Payment (PAWHP) was supposed to take the role of the winter fuel payment, according to the Scottish government.
Due to the predicted cuts, which Ms. Somerville claims account for up to 90% of the PAWHP financing, that has now been postponed until 2025–2026.
