Pension Age Winter Heating Payment : Island Communities Impact Assessment
The Island Communities Impact Assessment (ICIA) carried out in relation to the Winter Heating Assistance (Pension Age) (Scotland) Amendment Regulations 2025
Recommendations and Conclusions
101. Through the work undertaken to produce this impact assessment it is clear that living in island communities presents unique challenges for older people.
102. A PAWHP for those earning an income of £35,000 or less will provide pensioner households with more support than is currently available, as the payment will extend eligibility to more pensioner households, providing vital support to those most in need every winter to assist with heating costs.
103. PAWHP will ensure that pensioner households in island communities living on the lowest incomes will receive support to help them meet their heating costs.
104. However, we recognise that fuel costs are on average higher for island communities than urban areas, and that payment values remain consistent across Scotland. Identifying these groups within the current caseload in order to make payments earlier when relevant fuel prices may be lower, or to make a payment of higher value, would require significant systems development which will not be possible this winter. As with all social security benefits, we will continue to consider possible improvements post-delivery, including improvements for rural, island and off-grid communities.
105. 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.
106. It is anticipated that the Scottish Government will receive £150 million via the Block Grant Adjustment in 2025/26.The Scottish Fiscal Commissions forecast published in June 2025 suggests that a our PAWHP will be an investment of £151 million in 2025/26 by the Scottish Government.
107. The Scottish Government has committed to a review of its National Islands Plan. This will consider challenges for islanders, including issues around fuel poverty and action that can be taken to address this, and we will continue to consider any impacts that our PAWHP may have on rural, island and off-grid communities.