Anas Sarwar has backed ending the Winter Fuel Payment for all pensioners and said a replacement benefit being introduced in Scotland should be "targeted" at those who need it most.

The Scottish Labour leader said today it made little sense for "millionaires" to be receiving the handout at a time of immense pressure on public services.

But he said his party was still firmly in favour of other universal benefits such as prescriptions and free tuition fees.

All older people across the UK, regardless of their income, are currently eligible for a payment to help them pay for heating bills during the coldest months.

But that universal scheme will come to an end later this year following an announcement by Rachel Reeves, the Chancellor, earlier this week.

READ MORE: Books-balancing Reeves takes fuel help from 10m pensioners

Instead, the Winter Fuel Payment will soon be restricted to those in England and Wales who receive pension credit or another means-tested benefit.

Payments are currently worth between £100 and £300 – tax-free – with the basic rate paid automatically to anyone claiming the state pension. The higher sums are available to those who get other benefits, such as pension credit.

The Scottish Government was already preparing to launch a replacement benefit for the Winter Fuel Payment north of the Border before Ms Reeves' intervention.

But there is now a question-mark over whether the new Pension Age Winter Heating Payment (PAWHP) should remain available to all older people or become means-tested.

READ MORE: Decision to end universal winter fuel payments ‘too narrow’, says Martin Lewis

Mr Sarwar said he was "sympathetic" with some charities and money experts - including Martin Lewis - who said that was too narrow a criteria to help everyone in need.

Asked at a visit to a community garden in Easterhouse in Glasgow today if the replacement benefit in Scotland should be universal, the MSP said: "I think we have an opportunity to make this a more targeted benefit.

"We don't need people who are millionaires to be receiving a payment in winter - at the same time we have a Scottish Government saying, because of the public finances, that working people earning £29,000 should be paying higher taxes.

"I think we have an opportunity to have a more targeted benefit.

"I'm sympathetic to those who say pension credit is too tight a criteria for those who require support through the winter. I saw Martin Lewis make that point, and several charities representing older people make that point.

"We are willing to work with the Scottish Government to help identify what a fairer criteria should be, and to implement a more targeted support base for Scotland."

The Scottish Government has so far firmly supported the continuation of for other universal benefits such as free tuition, prescriptions and eye tests being offered regardless of economic circumstances.

Asked if such a move could lead to other benefits to being means-tested, Mr Sarwar rejected the idea, saying: “We’re not opening up that discussion and that debate, that has been decided in Scotland.”

Ms Reeves previously told MPs this week she had to make savings of £5 billion straight away due to the economic situation she had inherited from the Conservatives.

SNP MSP Kevin Stewart said: “Anas Sarwar previously promised that a Labour government would ensure no pensioner had to choose between heating and eating.

“We now know this promise is as empty as his principles with his backing of the new Labour Chancellor’s decision to slash the Winter Fuel Payment.

“The promise of so-called change during the election campaign now lies in tatters as the Labour Party show their true colours and their Scottish branch office row in behind an austerity agenda.

“Scottish pensioners cannot be forced to bear the brunt of more Westminster cuts, but that is exactly what will happen under Labour’s plans.

“The SNP will do everything in our power to stand up for pensioners across Scotland and I call on [Sir Keir] Starmer and Sarwar to reverse this decision before we see the devastating impact of this abysmal policy this winter.”

A Scottish Government spokesman said: "Responsibility for Winter Fuel Payment will be transferred to the Scottish Government this winter, with these payments funded from within the 2024-25 Scottish Budget.

"The full implications of the Chancellor’s statement are being examined, however it’s understood means-testing Winter Fuel Payments will reduce the funding given to the Scottish Government associated with our planned replacement Pension Age Winter Heating Payment."

Winter fuel payments are a state benefit for pensioners that are designed to help with their heating bills. 

They were introduced in 1997 by the last Labour government and have been available to everyone in the UK (and some countries beyond) who has reached state pension age.

The payment is made annually each winter. In the winter of 2022-23 there were payments to 11.4 million pensioners in 8.4m households. That year and in the winter of 2023-24 there were extra cost of living payments made to the poorest pensioner households – for some this increased the payment to £600.