Scottish Government to pass on £100 energy bill payment

The Scottish Government will pass on the £100 payment towards energy bills announced by the Chancellor.

John Healey announced the move in his first Budget since taking the job on Wednesday.

Households assessed as being council tax bands A to D will receive the money, with Mr Healey telling the Commons the devolved nations will receive “their share”.

It is not clear how much funding will come to Scotland as a result of the policy but the Scotland Office has said the Budget will result in a £600 million boost to the Scottish Government’s coffers over the next three years.

But Scotland’s Deputy First Minister and Finance Secretary Jenny Gilruth said the payment did not go far enough.

She said: “The Scottish Government is seeking to replicate the payment. However, we don’t think it goes far enough.

“Of course, in my correspondence with the Chancellor and in our first meeting, we raised issues around energy costs.

“And of course, the Labour Government came to power with a promise to bring down energy costs by £300 and instead have gone up by £300 and they’re expected to go up further in January.

“We welcome progress, but it doesn’t ultimately go far enough to meet the significant costs that folk are facing at the current time in terms of their energy bills.

“And ultimately, in an energy-rich country like Scotland, we don’t think our people should be having to pay the price.”

Ms Gilruth said she did not have the exact figures from the UK Government yet on how much the payment would cost.

She described it as a real-terms cut of £650 million as a result of inflation.

Ms Gilruth said: “It is also the case that in the next financial year our budget will reduce by £650 million in real terms.

“So that’s a significant reduction in terms of the choices I’m able to take as finance secretary, it will have an impact on public services.

“It will have an impact on the choices that I’m able to take. It will have an impact on the engagement we have with opposition parties. I think it’s really regrettable.

“We’ve still got a new Prime Minister and a new Chancellor here. There was an opportunity to reset, rechart the course, and instead that’s been lost. And I think that is deeply regrettable in terms of the opportunities that were in front of the Chancellor for today.”

The Deputy First Minister said the Scottish Government is currently planning on a “like-for-like” payment.

Speaking to journalists, Ms Gilruth said there was “so much that’s not there”, speculating that the Prime Minister could be holding back ahead of an early general election.

Andy Burnham said earlier on Wednesday there would not be another election in the next 12 months.

Ms Gilruth said: “If you compare the content of today’s Budget with the PM’s speech at Labour Party conference, the two do not match.

“So there’s an incoherence there, which suggests – perhaps – that something might be around the corner, but we’ll have to wait and see.”

Speaking to the Press Association after the Budget, Scottish Labour leader Michael Marra welcomed the Scottish Government’s commitment to pass on the payment.

“It’s obviously right that they do that,” he said.

“It’s only possible because of the decisions that the Labour Government are taking and it is the core issue that people are raising.

“People are seeing it in their bills, they’re seeing it month to month, trying to make sure they can make ends meet.

“So, I’m really glad if the SNP are responding positively to that proposal, it’s absolutely right that they should support it – I want to see that delivered as soon as possible.”

The Scottish Labour leader said he wanted to “work with the SNP” ahead of the Scottish budget being set to ensure “that money that we’re investing in Scotland reaches the front line”.

“This isn’t just about filling the black hole the SNP have created for themselves, it’s about making sure that we can deliver better outcomes for people,” he added.

Scottish Secretary Douglas Alexander said: “This is a Budget that puts money back in the pockets of Scottish households, backs businesses and puts Scotland firmly at the heart of the UK Government’s plan for growth and reindustrialisation.”

He added: “There’s a boost for Scotland’s public services too, with an extra £600 million for the Scottish Government to spend.”

Scottish Liberal Democrat leader Alex Cole-Hamilton said the Budget was “missing a real growth plan with Europe at its heart”.

Scottish Tory leader Russell Findlay said Scots would be “forgiven for asking, is that it?”

He said: “John Healey’s first Budget was a damp squib which will do nothing to boost economic growth.”

The Chancellor failed to cut the benefits bill, Mr Findlay said, adding that failing to confirm the approval of the Rosebank oilfield near Shetland was a “massive disappointment”.

SNP Westminster economy spokeswoman Kirsty Blackman said the Budget showed “the Labour Government doesn’t get Scotland”, adding: “Instead of providing meaningful help, it has abandoned families in the face of soaring bills and has imposed another betrayal on Scotland’s energy – with the decision to scrap Scottish carbon capture funding.

“Andy Burnham promised to cut the cost of living but every major household bill has increased on his watch – and the UK Budget completely fails to address the scale of the challenge families are now facing.”