The Winter Heating Assistance (Pension Age) (Scotland) Regulations 2024: scrutiny report

SCoSS welcomes the draft impact assessments sent alongside the draft regulations as helpful to our understanding of the regulations, potential impacts and policy intentions.

5.1 Equality impacts

The three aims of the public sector equality duty (PSED) are: to give due regard to the need to eliminate discrimination, to advance equality, and to foster good relations.¹The Public Sector Equality Duty (PSED) (www.equalityhumanrights.com) This is the framework within which data can be deployed to assess the impact of a particular policy. Whilst a like-for-like approach to case transfer may appear to have a limited or neutral impact, consideration of the policy under each of the PSED aims could help to identify where policy and practice could be improved, and may also assist in developing longer-term reforms.

With regards to the evidence base, helpful information about poverty, fuel poverty and fuel efficiency is included, as is reference to outcomes for older people (including financial security). However, SCoSS notes that some Department for Work and Pensions statistics relating to Winter Fuel Payment (WFP) recipients living in Scotland could inform our understanding of equality in relation to Pension Age Winter Heating Payment (PAWHP).²WFP recipients by region, gender and age band: Winter Fuel Payment statistics for winter 2022 to 2023 (www.gov.uk) For example, an estimated 54% of WFP recipients in Scotland were female, indicating that potential impacts of PAWHP policy may be of particular relevance to women.

Age is a prominent protected characteristic in this policy, with 51% of WFP recipients living in Scotland over age 75.³WFP households by region and age group: Winter Fuel Payment statistics for winter 2022 to 2023 (www.gov.uk) Almost a third of recipients living in Scotland are over age 80 (a group which is entitled to higher amounts of PAWHP and which may also have additional needs which intersect with this older age range). Intersections between age and disability would also be relevant. Whilst existing data concerning some protected characteristics (such as sexual orientation/gender reassignment/ religion or belief) is likely to be limited, consideration could be given to how these data gaps could be filled.

Recommendation 9: When revising its equality impact assessment the Scottish Government should give consideration to the aims of the Public Sector Equality Duty and collect further relevant data to inform longer-term development of Pension Age Winter Heating Payment.

5.2 Assessments and winter heating

The draft Island Communities Impact Assessment (ICIA) highlights evidence that in island and rural communities, fuel poverty rates are higher, the climate is colder and being off gas grid is more likely to be an issue.⁴Draft ICIA, paras 22-24. Additionally remote rural areas have a higher proportion of older people than the rest of Scotland.⁵Draft ICIA, para 38. Despite this the draft ICIA notes that Pension Age Winter Heating Payment (PAWHP) would have a ‘neutral’ impact⁶Draft ICIA, para 21. and with no evidence that would directly or indirectly discriminate against island residents.⁷Draft ICIA, para 54.

Whilst some respondents to the Scottish Government’s consultation suggested that an alternative for some households could be direct payments to energy suppliers, SCoSS notes that this may not be practicable for people whose houses, for example, are heated by oil or coal.⁸Independent Age response – PAWHP consultation (www.independentage.org), p. 3. The draft Fairer Scotland Duty Assessment (FSD) notes that around 100,000 off-gas-grid households (most of which are in island or rural communities) were in fuel poverty.⁹Draft FSD, p. 9. The draft FSD further states that an automatic payment to off-grid households would require a mechanism to identify such households, which was not considered to be a practicable option.¹⁰Draft FSD, p. 9. Although considered to have a neutral impact (relative to Winter Fuel Payment (WFP)) these assessments indicate that island and rural communities experience particular difficulties with winter heating, so the design of any financial support will have particular effects on such communities. It is therefore welcome that future developments of PAWHP will consider impacts on rural, island and off-grid communities.¹¹Draft ICIA, para 58.

Also, the draft FSD concludes that, overall, replacing WFP with PAWHP is likely to have a ‘neutral’ impact on reducing inequality and tackling poverty for older people.¹²Draft FSD, p. 12. The emphasis here (as we also discuss in section 1) is that potential PAWHP impacts are considered relative to the WFP, not that PAWHP or WFP in themselves have no impact on individuals.

Both the draft Business and Regulatory Impact Assessment (BRIA) and the draft FSD highlights that one option considered by the Government included a scheme targeted on those experiencing fuel poverty.¹³Draft FSD, p. 6; Draft BRIA, paras 25-30. The draft BRIA further notes that, as PAWHP is being introduced under section 30 of the Social Security (Scotland) Act 2018, there is no provision to enable entitlement based on financial circumstances and that a more targeted approach may not align with the commitment to financial security for older people.¹⁴Draft BRIA, para 26. However, enabling people to opt out of receiving PAWHP may help to reduce numbers of people on higher incomes receiving it.¹⁵Draft BRIA, para 29. We consider longer-term directions through the lens of the social security principles in section 6 below.

The draft BRIA also indicates that demands on third sector organisations to provide advice and support on PAWHP may change slightly but given the like-for-like approach and automation, should not require provision of complex advice.¹⁶Draft BRIA, para 35. However, if significant numbers of people do apply, the impact on the advice sector may be greater than anticipated. SCoSS believes that the impact of PAWHP on advice agencies, especially where an application has to be made, should remain under review.

SCoSS also welcomes statements in the draft BRIA and the draft FSD that PAWHP monitoring will be a continuous process,¹⁷Draft BRIA, para 43. and that evaluation will take place.¹⁸Draft BRIA, para 47.