The decision follows a decision by the UK Government.
A leading charity for older people has expressed their disappointment in the Scottish Government’s decision to follow in the footsteps of Westminster and scrap universal winter fuel payments for pensioners.
The introduction of a replacement Scottish benefit has also been delayed, ministers confirmed.
Plans to means-test Winter Fuel Payment in England and Wales will see the Scottish Government’s funding cut by up to £160 million.
Age Scotland said the SNP Government has been left with no decision but to replicate plans to means-test the Winter Fuel Payment announced last month at Westminster.
Social Justice Secretary Shirley-Anne Somerville said the Scottish Government therefore has no alternative but to replicate the decision in Scotland and restrict payments to pensioners who receive eligible benefits.
Social Justice Secretary Shirley-Anne Somerville said: “Despite all efforts to review our financial position we have been left with no choice but to follow the UK Government and restrict payments to older people who receive relevant eligible benefits.
“This is a necessary decision when faced with such a deep cut to our funding and in the most challenging financial circumstances since devolution. The reduction we are facing amounts to as much as 90% of the cost of Scotland’s replacement benefit, the Pension Age Winter Heating Payment.
“Given the UK Government’s decision to restrict payments to those in receipt of means-tested benefits, such as Pension Credit, and the implications for the Scottish Government detailed above, I have urged the Secretary of State for Work and Pensions to undertake a benefits take-up campaign for Pension Credit and to move forward with plans for a social energy tariff.
“Both of these measures will provide some further protection to energy customers in greatest need.”
Age Scotland is continuing to put pressure on the Labour Government at Westminster to reconsider the plans.
Age Scotland’s policy director, Adam Stachura, said: “It’s infuritating that huge numbers of older people will miss out on the vital Winter Fuel Payment when it is devolved to Scotland.
“We recognise the financial challenge the Scottish Government would face to make up the shortfall to keep the payment universal, but we desperately hoped there could be a more effective delivery of this payment and that it could have looked more generous than the UK Government’s new, and meagre, approach.
“At minimum, a quarter of a million pensioners in Scotland on the lowest incomes or living in fuel poverty will no longer receive this vital financial support over the winter months, while hundreds of thousands more on modest incomes are going to struggle with their energy bills even more than normal as a result.
“This brutal decision by the UK Government was made too fast, cuts too deep and its impact will be severe. It’s important that they rethink this move, as it has a huge impact on the devolution of social security and the needs of Scottish pensioners who live in some of the coldest homes in the UK.”
Concerns were also raised by other campaigners.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “This is a decision essentially made in Westminster by the Chancellor, but it is pensioners in Scotland and across the rest of the UK that will pay the price.
“We have publicly commended the new UK Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy. But these solutions will take time to bring down bills.
“In the meantime, households of all ages will need more support to stay warm this winter, not less.
“We urge the Chancellor to broaden the targeting of the Winter Fuel Payment which would enable a more generous scheme to be introduced by Scottish ministers. The UK Government also needs to act to introduce support to end energy debt and reform Britain’s broken energy system.
“Unless we see urgent action to keep people warm this winter, one of the first actions of the new UK Government will be to condemn more vulnerable Scottish households to fuel poverty.”
