The Scottish Government say it has been left with ‘no choice’ but to means test their replacement for the Winter Fuel Payment.

The decision follows Chancellor Rachel Reeves restricting the annual payment 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.

However, Social Justice Secretary Shirley-Anne Somerville confirmed that the PAWHP would now be deferred to 2025/26. 

She said means-testing the benefit means around 900,000 would lose out, with just 130,000 receiving the payment. 

Ms Somerville said: "This is a necessary decision when faced with such a deep cut to our funding and in the most challenging financial circumstances since devolution."

Deputy First Minister Kate Forbes accused Labour of damaging devolution. 

She said: “The Chancellor announced this cut to the Winter Fuel Payment just weeks before the Scottish Parliament is due to take on responsibility for the payment – and without any consultation with the Scottish Government.

“Devolving a policy weeks after cutting its budget by almost 90% is disrespectful to everybody involved in shaping the new Scottish policy.

"Not only does it drive a coach and horses through the devolution settlement, it ignores the disproportionate importance of this payment to households in Scotland, who face harsher winters and higher fuel costs.

“We and many others called for the UK Government to rethink this approach - or at least allow more time for a proper consultation - but they have not changed course.

"There is an eerie silence from Labour politicians north of the border, who would have been the first and loudest to condemn the Scottish Government if the roles were reversed."

Scottish Conservative social security spokesman Miles Briggs said: “The SNP Government’s decision to follow Labour’s abolition of the universal winter fuel payment is a hammer blow to many Scottish pensioners.”

He criticised the SNP for its “inept mismanagement” of the economy, claiming it was this that meant ministers could not afford universal payments for older Scots.

Mr Briggs insisted: “The SNP could have chosen not to implement this measure – despite their protests, they seem able to find money at the last minute when it suits them.

“But instead, they’ve opted to pass the costs on to Scottish pensioners and dishonestly pretend they had no choice in the matter.

“The SNP, like Labour, have chosen to betray many vulnerable pensioners. This is an essential benefit and people who have worked their whole lives deserve to be able to heat their homes in winter.”

A UK Government spokesperson said: “The £22 billion black hole in the public finances the UK Government inherited from the previous administration has required us to take difficult decisions.

"We are working closely with the Scottish Government to make this as smooth a transition as possible, and more importantly ensure eligible pensioners continue to receive support.

“The UK Government has protected the poorest pensioners by ensuring people on pension credit or certain other income-related benefits will continue to receive the payment.”