SNP Government urged to spell out how it will use £40m Westminster funding for struggling households

EXCLUSIVE: The UK Labour Government announced last month that it was extending the Household Support Fund this winter to help people with the cost of their energy, food and water.

The SNP Government has been urged to spell out how it will use around £40 million in Westminster funding for struggling households.

The UK Labour Government announced last month that it was extending the Household Support Fund this winter to help people with the cost of their energy, food and water.

Councils in England directly received £421m, with £79m estimated for the devolved administrations in Barnett consequentials. Reports have suggested that this would mean Scotland receives about £40m.

Labour MP for Dunfermline and Dollar Graeme Downie has urged the Scottish Government to "pass this funding down to local authorities to help those most in need".

He also questioned whether it will "disappear down the financial blackhole as [the SNP] seek to blame others for their own financial incompetence".

The SNP Government has said it is yet to "receive confirmation of Barnett consequentials" for the fund and doesn't expect to until the Budget at the end of the month.

Downie said: "We have heard nothing from the SNP about how they will use additional funding of around £40m given to them by the UK Labour government as a result of the decision to expand the Household Support Fund.

"Will they use this money to help people who would otherwise struggle to buy food or pay essential utility bills or will it disappear down the financial blackhole as they seek to blame others for their own financial incompetence?

"As Councils struggle with funding after year after year of SNP austerity, passing this funding down to local authorities to help those most in need is the least they can do and I hope they will make their decisions soon so this money can help those most in need as quickly as possible."

The Household Support Fund had initially been due to end last month but the Labour Government announced its extension at the beginning of September. It will now run until April next year. The £421m for England has been given directly to councils, but it is unclear if the Scottish Government will do the same with the money it has been given.

It comes after Labour made the Winter Fuel Payment means-tested. The Scottish Government said this caused a funding cut of up to £160m.

Chancellor Rachel Reeves caused anger in July when she announced plans to take up to £300 from ten million pensioners across the UK by means-testing the Winter Fuel Payment.

Her proposals, designed to save £1.5bn, have been criticised as older people on modest incomes will lose out at a time of rising energy costs.

Around 900,000 older Scots will miss out due to the cut. Most of those who are still eligible for the payment receive Pension Credit.

It comes as energy bills increased by 10 per cent yesterday as the price cap went up. This means that people using an average amount of gas and electricity will pay £1,717 a year adding £149 onto the average household bill.

SNP Social Justice Secretary Shirley-Anne Somerville said:

“The UK Government’s decision to restrict eligibility for Winter Fuel Payments will reduce the funding available for the devolved Pension Age Winter Heating Payment by around £150 million and was taken without consultation or discussion with the Scottish Government, leaving us with no choice.

“We are yet to receive confirmation of Barnett consequentials to the Scottish Government from the Household Support Fund and we do not expect further detail until the UK Budget at the end of October.

“This year alone, within our limited devolved powers, we are spending £134 million mitigating UK Government policies through schemes such as Discretionary Housing Payments and the Scottish Welfare Fund, which provide vital support to households struggling to meet their housing and energy costs.

“We are taking action to support older people and tackle poverty, including investment in our Council Tax Reduction Scheme and free bus travel for all older people over the age of 60 in Scotland. We continue to call on the UK Government to introduce a social tariff as a means of targeted support for those who need it the most.”

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