All pensioner households in Scotland will receive at least £100 next year after the Scottish Government unveiled a new winter benefit.
Shirley-Anne Somerville told MSPs that the payout would be universal but tapered.
While every household will receive £100, those on a qualifying benefit, such as Pension Credit, would get £200 or £300, depending on their age.
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The minister said she had been forced to “mitigate” decisions made by the UK Government.
In July, Rachel Reeves announced a cut to the Winter Fuel Payment to pensioners in England and Wales as part of her plan to tackle a £22 billion black hole in the public finances.
Instead of all pensioners receiving the annual payout, it only went to those on pension credit.
At the time, SNP ministers said the change left them with a £160 million funding shortfall for their own equivalent devolved benefit, which was due to start this year.
They said they had little choice but to follow suit.
However, in her statement on Thursday, Ms Somerville said they had found the money to "re-instate" a universal payment
“We have not taken this decision lightly, given the significant pressures on the Scottish Government’s budget," she told MSPs.
"But this Scottish Government is determined to stay true to our values.
“On our watch, we will treat people in this country with fairness, dignity and respect.
“We will not abandon older people this winter, or indeed any winter, and we will continue to protect our pensioners from the harsh reality of a UK Labour Government.”
Ms Somerville also announced a £41m package of support for people struggling with energy costs this winter, including an additional £20m for the Scottish Welfare Fund, which is administered by local councils.
Scottish Conservative shadow cabinet secretary for social security Liz Smith accused the SNP minister of "shameless spin."
She said: “Despite trying to talk this decision up to pensioners, the reality is that this will be a cut for many of them and help still won’t be coming this winter.
“SNP Ministers are trying to hoodwink people into believing they are on their side when they haven’t delivered the support they need.
“They would like them to forget that they were prepared to shamefully follow Labour’s lead, and shouldn’t be acting like they have delivered an early Christmas present for pensioners.”
Labour social justice spokesman Paul O’Kane asked the minister where the money to fund the payout was coming from.
He asked if it had been paid for through the increase to the Scottish Government's block grant, as a result of decisions the UK Government's budget.
Ms Somerville hit out at the MSP: “I think as well as asking some questions, which he is obviously right to do, Mr O’Kane and his party should come here with a bit of humility and a bit of an apology for Scotland’s pensioners for putting us in this position in the first place.”
The news was welcomed by charities working with older people.
Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said it would "offer some comfort to the 900,000 pensioners who were set to completely lose the previous Winter Fuel Payment."
She said the Chancellor's announcement in July had left many pensioners "worried about heating their homes, and making ends meet, through the winter."
She added: "Many have told us they are heating only one room, staying in bed all day with a blanket, and cutting back on food to avoid the energy costs associated with cooking.
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"With energy prices set to rise again in January, and a staggering 330,000 older households living in fuel poverty in Scotland, it is clear that changing the eligibility of the payment in this way was the wrong decision. It is positive that this has been recognised in Scotland, with the Scottish Government making a payment available to all older people next year, and we hope the UK Government will also reconsider their decision."
Ahead of her statement, Ms Somerville was forced to apologise to Holyrood's Presiding Officer, Alison Johnstone, after details of the scheme were leaked to press.
Ms Johnstone cut the statement short to allow more time for MSPs to question the minister.
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