JOHN Swinney said he was mulling over whether to reverse Winter Fuel Payment cuts after Holyrood received a major funding boost due to last week’s UK Budget.
The First Minister said he was “considering” universal benefits for all pensioners under devolved powers, which could cost around £150 million.
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It comes after Chancellor Rachel Reeves’s Budget last week led to an immediate £1.5million of extra funding for services until April, followed by £3.4billion a year extra following that.
Asked if he was considering the payment, Mr Swinney said: “There’s lots of options being considered, yes.”
The comments come around a month before the Scottish budget and amid a desire from SNP figures to pile on the misery for Scottish Labour on the issue – which saw two MSPs rebel last month on the issue.
And asked whether reversing the winter fuel payment cut could be part of the budget, the First Minister said: “Obviously we are looking at all range of options in relation to the budget.
“We are at a very early stage in the discussions around the budget having seen the UK financial settlement last Wednesday.”
He added that there was still “enormous pressure” on the public finances, but did not rule out doing so and said there were many “questions” to be answered ahead of the budget.
The Nats chief said: “The position on this financial year is broadly in line with what we expected in terms of resources to deal with pay settlements and other inflationary pressures.
“But obviously we have got a lot of questions to determine before the budget on December 4.”
Asked if Winter Fuel Payment was a possibility, he said: “There’s lots of options being considered.”
And pressed to say yes or no to whether ministers would pay for the benefit, he said: “I can only answer that question when we have come to the conclusion of our deliberations which will be December 4.”
Mr Swinney also said he considering making business tax relief dependent on whether firms pay their employees the living wage – higher than the minimum wage but not required by law.
Such a move could see millions added to the Scottish exchequer – with all business rates relief costing the Government £727million last year.
The First Minister said: “It is one of the issues we are exploring.
“I can see the merits of it, of course I can.”
Rachel Reeves announced in July that only those households receiving Pension Credit or certain means-tested benefits would be entitled to the Winter Fuel Payment from now on.
Previously, the Winter Fuel Payment was available to everyone over the state pension age – currently 66.
The benefit – worth £200, or £300 for people aged 80 and above – has now been devolved, becoming the Pension Age Winter Heating Payment in Scotland.
But the Scottish Government has echoed the Chancellor’s means-testing, arguing it can’t afford to keep universal payments because it will no longer get the expected cash from Westminster.
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The Scottish Fiscal Commission estimates total spending on PAWHP will be £32million in 2024-25 – around £148 million lower than had it remained a universal benefit.
Earlier this year, the Scottish Government’s Poverty and Inequality Commission – official advisers to SNP ministers – told the Scottish Government to “look again” as a replacement benefit “should be targeted, not universal”.
