Commission Estimates Impact of Pension Age Winter Heating Payment Changes

The Scottish Fiscal Commission has today published an updated forecast for Pension Age Winter Heating Payment (PAWHP) to accompany the Scottish Government’s regulations that have been laid in Parliament.

The new Scottish regulations mirror the changes announced by the UK Government on 29 July 2024 for Winter Fuel Payment in England and Wales.

The Commission estimates that 137,000 households in Scotland will receive Pension Age Winter Heating Payment in 2024-25. Estimated spending on the payment in 2024-25 is £32 million, which is £148 million lower than previously forecast. 

The UK Government’s changes in England and Wales will reduce the funding the Scottish Government receives through the social security Block Grant Adjustment.

The size of the reduction in funding will be confirmed at the UK Budget on 30 October 2024. However, the reduction in spending should be broadly aligned with the reduction in funding from the UK Government.

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Notes for Editors

  1. The Commission’s Report, Supplementary Costing – Pension Age Winter Heating Payment – September 2024 is available now. Background information is also available including spreadsheets with data for tables. [Supplementary Costing – Pension Age Winter Heating Payment – September 2024]
  2. Our revised forecast is published at the same time as the Scottish Government’s Winter Heating Assistance (Pension Age) (Scotland) Regulations 2024 have been laid in Parliament.
  3. We also provided information on the implications of the change for Scottish Government funding in our Fiscal Update published on 27 August 2024. [Fiscal Update – August 2024 | Scottish Fiscal Commission]
  4. We recently published a series of videos which explain the Scottish Budget process. Module 2 in the series explains devolved social security in Scotland. [Videos | Scottish Fiscal Commission]
  5. The Scottish Fiscal Commission is the independent fiscal institution for Scotland, established by the Scottish Fiscal Commission Act 2016. Our reports represent the collective view of the Scottish Fiscal Commission, comprising the Commissioners: Professor Francis Breedon, Professor Domenico Lombardi, Professor David Ulph, and the Chair, Professor Graeme Roy.

Media Enquiries:
press@fiscalcommission.scot

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