Pension Age Winter Heating Payment: Fairer Scotland Duty Assessment

Tackling Fuel Poverty

PAWHP is provided alongside a range of wider measures in line with the Scottish Government’s commitment to tackling Fuel Poverty.^[35]

In winter 2024/25, PAWHP was delivered by the Department for Work and Pensions under an agency agreement with Scottish Ministers. This approach sought to ensure that eligible individuals in Scotland received support over the Winter, ensuring that there was no gap in provision in winter 2024/25 following the UK Government’s announcement to restrict WFP to those in receipt of relevant benefits.

The Scottish Government continues to support vulnerable households with their energy costs through a range of actions within our limited devolved powers. This includes delivering our WHP which, in contrast to the UK Governments Cold Weather Payment, guarantees a reliable annual payment to people on low-incomes, including those pensioners in receipt of Pension Credit each winter. We also support households across Scotland through our energy efficiency delivery programmes - Warmer Homes Scotland and Area Based Schemes which have supported over 155,000 households living in, or at risk of fuel poverty in the past decade.

The Warmer Homes Scotland programme offers funding and support to households struggling to stay warm and keep on top of energy bills. It is designed to help people make their homes warmer and more comfortable by installing a range of energy saving improvements. The primary objective is to support households in, or at risk of fuel poverty through the heat transition, and to help remove poor energy efficiency as a driver of fuel poverty for these households.

Furthermore, the Scottish Government continues to provide support to tackle poverty and the cost of living. This includes our Scottish Welfare Fund as an essential source of support for those in crisis and most in need and our Discretionary Housing Payments which support tenants struggling with their housing costs.

However, high energy prices continue to drive fuel poverty in Scotland, and remain reserved to the UK Government. We repeatedly called on the previous UK Government to introduce a social tariff mechanism. This includes calling for an automatic targeted bill discount to provide the right and fair support for some of the most vulnerable energy consumers across the whole of Scotland, as well as ensuring that those using alternative fuels are treated equitable to those on the gas grid. Whilst powers remain reserved, the former Minister for Climate Action secured the agreement of energy suppliers and organisations to participate in a working group aimed at co-designing such a scheme – the outputs of which were shared with the UK Government in March 2025.

Analysis on the impact of PAWHP changes on fuel poverty levels is forthcoming but it is expected that any impact on overall fuel poverty levels will be minor. Whilst PAWHP will have a negligible impact on fuel poverty rates, it will help to mitigate some of the winter heating costs experienced by older people.