Pension Age Winter Heating Payment (PAWHP): equality impact assessment

Title of Policy

Pension Age Winter Heating Payment (PAWHP)

Summary of aims and desired outcomes of Policy

On 28 November 2024 the Scottish Government announced that it will bring forward regulations to introduce a universal PAWHP from winter 2025/2026 onwards.

This will be a single annual payment of £305.10 for pension aged individuals aged 80 and over who are in receipt of relevant benefits, or whose partner in a joint claim has reached that age, £203.40 for pension aged individuals below the age of 80 in receipt of relevant benefits, and in addition, £100 for all households containing individuals of pension age who are not in receipt of relevant benefits.^[1]

This approach ensures that those pensioners in receipt of Pension Credit or other means-tested benefits will receive a higher amount of support, protecting their incomes. However, we also recognise that many pensioners who are above the income threshold for Pension Credit and other relevant benefits are also in need of support.

After careful consideration of the financial position for 2025-26 and the significant demands upon the SG's budget, following the UK Government’s Autumn budget, and confirmation of associated budget in Scotland, Scottish Ministers worked at pace to consider options for delivery of Pension Age Winter Heating Payment in winter 2025/26, as well as mitigations available for winter 2024/25. Scottish Ministers considered the finance available, and concluded that payments at a rate of £100 to those pensioner households not in receipt of a relevant benefit was affordable, and would go some way to supporting those households towards meeting their heating bills throughout the winter. This approach recognises many people who are not entitled to Pension Credit or other low income benefits also require support. Our universal PAWHP will ensure the provision of support to all pensioner households.

The key policy aim of this new element of the PAWHP benefit is to mitigate some of the impact of additional domestic heating costs in winter by providing universal, reliable financial support to people of pension age who are more vulnerable to cold temperatures due to their age and therefore have a greater need for household heating.

The rationale for providing PAWHP to this group is to provide all older people with additional money to help towards meeting increased heating costs during the winter. Having additional financial support can encourage them to heat their homes for longer whilst also helping to tackle fuel poverty. Older people often need to maintain a higher household temperature, and are likely to spend longer periods of time in their home.

SFC forecasts indicate that the universal PAWHP will support 812,000 pensioner households in 2025/2026, an investment of £101 million.^[2]

As such, this impact assessment now considers the equalities impact of introducing a universal eligibility element to PAWHP from Winter 2025/2026 onwards.

Directorate

Social Security Directorate

Division

Social Security Policy Division

Team

Winter Heating Benefits Policy Team