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

SCoSS has considered other forms of winter heating payments in previous scrutiny reports.¹The Winter Heating Assistance for Children and Young People (Scotland) Regulations 2020 – Scottish Commission on Social Security (socialsecuritycommission.scot); The Winter Heating Assistance for Children and Young People (Scotland) Regulations 2020 – Scottish Commission on Social Security (socialsecuritycommission.scot); The Winter Heating Assistance (Low Income) (Scotland) Regulations 2023 – Scottish Commission on Social Security (socialsecuritycommission.scot) Our experience indicates that one direction of longer-term reform would be to consider whether to retain distinct winter heating payments, as now, or whether to consolidate them into a single scheme, even if each component has different criteria. Responses to the Scottish Government’s PAWHP consultation included a recommendation to consolidate PAWHP with other winter heating payments.²E.g. Consultation on the Pension Age Winter Heating Payment (PAWHP) – Scottish Fuel Poverty Advisory Panel (fuelpovertypanel.scot), Pension Age Winter Heating Payment consultation response from the Poverty and Inequality Commission (povertyinequality.scot).

Aligning the three schemes could include common rules about qualifying weeks and payments dates whilst retaining distinct eligibility criteria (such as receipt of different benefits). The consolidation approach might also involve reviewing whether it remains appropriate to make more than one payment per household.

As noted in section 1, currently there are three schemes, one focussing on disabled children and young people (the Child Winter Heating Payment), one aimed at households receiving one of the means-tested benefits (Winter Heating Payment) and PAWHP, targeted at people over State Pension age. Some households could be eligible for more than one payment, such as people receiving Pension Credit who could be entitled to PAWHP and the Winter Heating Payment; if they have responsibility for a disabled child or young person they could also qualify for Child Winter Heating Assistance. However, the amounts payable, the time when they are paid and the qualifying week differ across the schemes. In the longer term such rules could be aligned but schemes kept separate, or the three schemes could be integrated into one single scheme.

Relevant social security principles to consider include continuous improvement (putting the needs of those requiring assistance first and non-discrimination (principles g(i) and g(ii)); and efficiency/value for money (principle h). Charter expectations also relevant in this context are to ‘make communications, processes and systems as simple and clear as possible by testing them with the people who will use them’.

6.2 ‘Universal’ or targeted benefit

The Scottish Government’s draft ‘Fairer Scotland Duty’ (FSD) Impact Assessment described the options considered by the Government as either mirroring Winter Fuel Payment (WFP) rules or taking a more targeted approach.

Responses to the Scottish Government’s PAWHP consultation reflected a range of views supporting either universal or targeted approaches.

• Many individuals supported keeping the benefit universal given concerns that means-testing could disadvantage those just over the threshold for support, be costly to administer³The Scottish Government Response to the Consultation on Pension Age Winter Heating Payment (PAWHP) (www.gov.scot), p. 6. and reduce take-up.⁴The Independent Age response noted that Pension Credit take-up was 63% compared with 96% for the WFP.
• Some organisations preferred targeting PAWHP to people on a low income or those more likely to be in fuel poverty, especially in the light of fuel poverty targets.⁵Such as the Scottish Fuel Poverty Advisory Panel. This was mainly concerned with allocating payment to those considered more in need, with others suggesting that PAWHP could be extended to disabled people, carers, or considering the needs of people living in remote, rural or off-grid locations.

Retaining a ‘universal’ approach could support principles such as an investment in the people of Scotland (a). It can also contribute to the poverty principle (e) if, following WFP, it remains largely automatic with high take-up, which can help to prevent poverty. Being largely automatic can also support principle (d) (dignity of individuals).

Targeted payments may also contribute to the poverty principle (e) but in a different way, and only for those who are in the target group. Targeting is also likely to involve some administrative complexity and application process, thus consideration of efficiency and value for money (principle h) will also be important.

Mixed views about the best direction for the longer term may make it more difficult to meet principle (f) (design with the people of Scotland), though this could be balanced by appraising specific policy options against value for money/efficiency considerations (principle h).

6.3 Concluding points on longer-term reforms

When developing longer-term reform, whether as a separate or consolidated scheme, or universal or targeted payment, a key principle to consider is the dignity of individuals (principle (d)). In this respect SCoSS notes that many responses to the Scottish Government’s PAWHP consultation supported a ‘cash-first’ approach,⁶E.g. paid to the individual via their bank account: individual responses and some organisations such as Independent Age response – PAWHP consultation (www.independentage.org), p. 8. as did a majority of Experience Panel members.⁷Social Security Experience Panels: Pension Age Winter Heating Payment (www.gov.scot), p. 26. This was also related to payments being made automatically to those qualifying. Payment to individuals is more likely to enable the dignity principle to be met (compared to, for example, direct payment to energy suppliers).⁸Suggested by some consultation responses, although this  may not be practicable for people whose houses, for example, are heated by oil or coal. Longer-term reform is also likely to require a balance between different principles. For example, there may also be trade-offs between the range of issues encompassed within principle (g) and principle (h) (value for money).

Overall, longer-term developments invoke the principle of continuous improvement (g). Putting the needs of those who require assistance first (principle g(i)) and advancing equality and non-discrimination (principle g(ii)) mean that alternative proposals should be assessed for impacts on individuals, households, locations and particularly on those with protected characteristics.

Such considerations are likely to require additional data and assessment against the three aims of the Public Sector Equality Duty (see section 5 above) and further stakeholder engagement.