Pension Age Winter Heating Payment: Business and Regulatory Impact Assessment

Consumer Assessment and Adherence to the Consumer Duty

The Consumer Duty

60. As of April 2024, the ‘Consumer Duty’ has replaced the ‘Consumer Assessment’ section of the BRIA. This is a statutory duty introduced by the Consumer Scotland Act 2020 which came into force on 1 April 2024.^[16] It places a duty on relevant public authorities in Scotland, including the Scottish Government, to improve the extent to which consumers are considered in strategic decision-making.

61. A key principle of the Duty is to ensure all public bodies are working towards improving outcomes for consumers as part of their strategic decision-making process.

62. The Scottish Government has a duty when making decisions of a strategic nature about how exercise their functions, to have regard to:

• the impact of those decisions on consumers in Scotland.
• the desirability of reducing harm to consumers in Scotland.

Requirements on relevant public authorities

The Act sets out four requirements on relevant public authorities:

• when making decisions of a strategic nature, have regard to the impact those decisions have on consumers.
• when making decisions of a strategic nature, have regard to the desirability of reducing harm to consumers.
• publication of information about the steps taken to meet the duty.
• having regard to this guidance.

63. The Scottish Government does not believe that the introduction of eligibility to PAWHP for those earning £35,000 or less will have an adverse impact on either eligible people or any other consumer.

64. PAWHP does not directly or indirectly limit the choices of consumers. Nor does it impact on decisions made on consumers in Scotland or limit the ability of consumers to compare the quality, availability or price of goods or services in a market. Furthermore, PAWHP will not impact a consumer's ability to understand their rights.

65. Consumer Assessment questions considered:

I. Does the policy affect the quality, availability or price of any goods or services in a market?

No

II. Does the policy affect the essential services market, such as energy or water?

No

III. Does the policy involve storage or increased use of consumer data?

Yes. With revised eligibility , the amount of client data required to administer the benefit will increase as more pensioners will benefit from the payment.

IV. Does the policy increase opportunities for unscrupulous suppliers to target consumers?

No

V. Does the policy impact the information available to consumers on either goods or services, or their rights in relation to these?

No

VI. Does the policy affect routes for consumers to seek advice or raise complaints on consumer issues?

No

Test run of business forms

66. We foresee no need for new business forms as a result of this policy.

Legal Aid Impact Test

67. The right to appeal to a the First-tier Tribunal (Social Security Chamber) is provided for in the Social Security (Scotland) Act 2018. Civil legal aid will continue to be available to individuals to appeal an entitlement decision to the Upper Tribunal, Court of Session or Supreme Court.

68. The Scottish Government expects the impact on the Legal Aid budget to be minimal as a result of the introduction of revised eligibility to PAWHP. Current recipients are already able to access legal aid to appeal entitlement decisions. Given that the majority of the caseload for this assistance will be paid automatically, the number of manual applications is expected to be fairly low.