Anas Sarwar has said his party is “willing to work” with the Scottish Government on opening the Winter Fuel Payment up to more people.

However, the Scottish Labour leader indicated that the money for any change north of the border will need to be found from existing budgets, with Rachel Reeves unwilling to back down on the decision to means-test the previously universal benefit.

At a press briefing in Holyrood, he said he had spoken to Ms Reeves, though he refused to say if he had asked her not to.

Last month, the Chancellor announced that she would restrict the annual payout in England and Wales to those on pension credit or certain other benefits as part of her plan to tackle a £22 billion black hole.

According to ministers in Edinburgh that left them with a £160 million funding shortfall.

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Winter Fuel Payments were devolved following the Smith Commission, with the new Pension Age Winter Heating Payment (PAWHP) due to be paid out for the first time later this year.

Initially, the plan was to keep it like-for-like, with all those above state pension age eligible for a single annual payment of between £100 and £300 for individuals.

According to the Scottish Government’s own analysis, making the payment means-tested rather than universal means around 900,000 Scottish pensioners will lose out, with just 130,000 receiving the payment.

Asked if he would like Ms Reeves to look again at the decision, Mr Sarwar said he did not “get a sense that there is going to be a change of direction on the winter fuel payment.”

“That is a decision that the Chancellor herself has said she didn’t want to make but was forced to make because of the economic inheritance.”

“Rachel’s made the decision they made at a UK level," he added. "Obviously, they are going to head towards the Budget on October 30th, where more is going to be set out around how we respond to the financial challenges that we’ve inherited.”

He was asked if had spoken to the Chancellor about the issue: “Yes, I spoke to Rachel about the £22bn black hole.”

Asked whether he had asked her not to go ahead with removing the universal component of the payment, he said: “What was very clear was we had a £22bn black hole. She herself has repeatedly said, publicly, that this is a decision she didn’t want to take.”

He added: “Rightly, she said that we have to accelerate the opportunities particularly for Scotland around GB Energy and those investments because we have disproportionate levels of fuel poverty in certain parts of Scotland but we also have disproportionate levels of opportunity in Scotland around that clean energy revolution.”

Asked if he “gave up” in trying to change Ms Reeves’ mind, he said: “I wouldn’t frame it in that language.”

Mr Sarwar said he was “sympathetic” to the view that only giving the payment to those on pension credit was too “narrow” a criterion.

The lengthy press briefing from the Scottish Labour leader was taking place at the same time as Sir Keir Starmer's speech in the Downing Street Rose Garden, where he warned of a "painful" budget ahead. 

Asked if he was worried the negative approach from the Prime Minister could harm his party at the 2026 election, Mr Sarwar said he thought voters would find the honesty “refreshing”.

He said: “I think voters will think it’s quite refreshing actually to have politicians that are being upfront, truthful and not trying to downplay the situation we are in, but are serious and grown up about how we respond to it.

“I think if there’s one thing in particular one thing people have sensed over the last seven or eight weeks of our Labour government is both in terms of tone, body language, and in terms of decision making, this is a very different, serious, grown up government and the response to the riots is a good example of that and the determination to reset the relationship with devolved governments is a good example of that as well.”

Mr Sarwar insisted that with the exception of the change to the winter fuel allowance, Ms Reeves’ decisions have not impacted the Scottish Government’s budget.

Mr Sarwar said: it was “absurd” to suggest the recent rounds of spending cuts announced by the Scottish Government are a result of “a Labour Party in government for seven weeks and not an SNP Government in power for 17 years”.

Mr Sarwar added: “The Cabinet ministers know it’s chaos, they privately say it.

“MSPs know it’s chaos, they privately say it. MPs know it’s chaos.

“They know it’s not working. There’s no plan, no strategy and it’s just trying to live day by day, week by week.”

Mr Sarwar accused the SNP of spreading “misinformation” around the public finances.

He said: “(Public Finance Minister) Ivan McKee was doing it again this morning, where he was saying that decisions that decisions that have been made across departmental spending cuts was a direct consequence of the statement made by Rachel Reeves.

“A blatant lie. Either that’s deliberate misinformation or it’s a failure to understand how public finances work.”

Speaking earlier, Ms Robison said Scottish Labour were trying to "distract from the billions of pounds in cuts that his boss in London is unveiling this week."

 

She added: “We have delivered a more progressive income tax system in Scotland which ensures those on lowest incomes pay a bit less – and unlocks billions more in investment for public services.

“Of course, the Scottish Government operates with a largely fixed budget from Westminster – and if Anas Sarwar really wanted to see more investment in public services in Scotland, he would join with us in standing up to Labour’s austerity agenda at Westminster.