Pension Age Winter Heating Payment: Business and Regulatory Impact Assessment
The Business and Regulatory Impact Assessment (BRIA) carried out in relation to the Winter Heating Assistance (Pension Age) (Scotland) Amendment Regulations 2025
Enforcement, sanctions and monitoring
69. The Social Security (Scotland) 2018 Act established the Scottish Commission on Social Security (SCoSS), an independent expert body that scrutinises the Scottish social security system (including benefit regulations) and holds Scottish Ministers to account. Section 97(2) and (3) of the Social Security (Scotland) Act 2018 requires Scottish Ministers to inform the Scottish Commission on Social Security (SCoSS) of these proposals in the form of draft regulations. The Scottish Ministers provided draft regulations to SCoSS shortly before laying this draft instrument in compliance with section 97(2).
70. Due to the late change in policy from the UK Government, and the lack of prior consultation with the Scottish Government, this instrument must be laid as a matter of urgency in order for payments to be made on time this winter, and it has therefore not been possible for SCoSS to have the appropriate amount of time to scrutinise and publish a report on the regulations before we lay the regulations in Parliament.
71. As such we are laying this draft instrument as well as a statement explaining why the Ministers consider it appropriate to lay the regulations under section 97(9)(b) of the Act without a report from SCoSS having been prepared. The Scottish Ministers will consider that report when it is published. SCoSS has been informed of the urgent nature of these regulations, resulting from the UK Government’s recent decision to expand eligibility to WFPs, and it is content to scrutinise the regulations retrospectively.
72. The Social Security (Scotland) Act 2018 also places a duty on the Scottish Ministers to publish an annual report on the performance of the Scottish social security system during the previous financial year. The report is to describe what the Scottish Ministers have done in that year to meet the expectations on them set out in the charter.
73. Monitoring the impact of the PAWHP will be a continuous process and where any unintended consequences are identified, we will consider what steps can be made to minimise any negative impact.
74. We will collate management information to monitor the characteristics of recipients and will undertake qualitative research to evaluate whether PAWHP is meeting its policy intentions. This will inform any future consideration of variations to policy or delivery arrangements.
Implementation and delivery plan
75. A communications strategy is under development, which will aim to ensure that individuals, the third sector, local government, and advice providers are aware of the revised eligibility of PAWHP, as well as understanding how and when recipients will receive the payment.
76. We anticipate regulations will be laid before Parliament on 25 August 2025 and, subject to parliamentary approval, come into force on 11 October 2025.
77. From winter 2025/2026, Social Security Scotland will make PAWHP payments to clients.
Post-implementation Review
78. As with all social security benefits, we will carry out an evaluation following the delivery of the benefit to evaluate whether PAWHP is meeting its policy intentions.
Summary and Recommendation
79. The Scottish Government’s primary consideration is always about providing the right level of financial support to those who are entitled to it. However, it is also important to consider deliverability, affordability and to what extent changes might result in increased spending.
80. As noted, the Scottish Government receive funding from the UK Government through the Social Security Block Grant Adjustment (BGA). It is anticipated that the Scottish Government will receive around £150 million funding towards PAWHP via the BGA in 2025/26, which reflects the UK Government’s updated policy. The Scottish Fiscal Commission’s forecast published in June 2025 estimates that PAWHP, for those with an income of £35,000 or less, will require an investment of around £151 million in 2025/26.
81. Based on affordability and deliverability considerations laid out above and working towards our goal of ensuring financial security for older people,[17] the Scottish Government intends to introduce a PAWHP for winter 2025/26 to ensure pensioner households in most need are supported with their energy costs during winter.