by Democrat reporter
MSP Jackie Baillie has welcomed the news that pensioners stand to be hundreds of pounds better off due to Labour’s budget choices.
New analysis shows that older people will benefit from the UK Government’s decision to protect the pensions triple lock and reduce energy bill costs next year.
Data has revealed that pensioners will gain an extra £706 on average – while some of the poorest will gain more than £1,000 from Labour’s policies.
Pensioners affected by the Miners pension scheme injustice and members of the Pension Protection Fund (PPF) and the Financial Assistance Scheme (FAS) will further benefit from Labour’s action on these two issues.
To deliver for pensioners, Labour is:
- Increasing the State Pension by 4.8%, benefiting 1.1 million Scottish pensioners and delivering an average boost of £556.
- Taking £150 off energy bills for all and £300 off bills for the poorest pensioners.
- Extending the fuel duty freeze, saving the average car driver £89 next year.
- Ending the miners pension injustice and returning £2.3 billion to former coal miners and their families.
- Ensuring payments from the Pension Protection Fund and Financial Assistance Scheme, putting £1.8bn into the pockets of pensioners over the lifetime of the scheme.
- Protecting the full £20,000 tax-free ISA allowance for over 65s.
- Maintaining Winter Fuel Payments worth up to £300 for pensioners earning less than £35,000 and providing the funding for Scotland to deliver the same payments.
- Investing £820 million for Scotland, meaning more money for the services pensioners rely on.
Dumbarton MSP Jackie Baillie, also Scottish Labour’s Deputy Leader, welcomed the news, saying: “I know from speaking to older people in my constituency that they feel let down by services including health and social care.
“But from boosting pensions, to cutting energy bills, to investing in our frontline services, Labour is delivering for pensioners.
“Labour has delivered a £10.3 billion boost to Scotland’s public services since the UK Government election, but that funding continues to be squandered by the SNP.
“The failures of the SNP Scottish Government means pensioners in Scotland face an NHS which is at breaking point, soaring social care waiting lists, declining public transport, rising crime and falling police officer numbers.
“Labour continues to ensure that pensioners are properly supported.
“Only by electing a Scottish Labour government next May, can we ensure that they have public services which work for them.”
- In April 2026, the State Pension will be uprated by 4.8%, so pensioners will receive up to an additional £575 a year.
- The Budget delivers a set of measures to remove around £150 of costs on average from household energy bills from April next year. This is on top of extending the £150 Warm Home Discount to a further 3 million of the poorest households.
- Extending the 5p fuel duty cut until the end of August 2026 with rates then gradually returning to March 2022 levels by March 2027. The planned increase in line with inflation for 2026-27 will also be cancelled. Alongside the introduction of Fuel Finder, these measures are expected to save families £89 next year compared to previous plans.
- The government will help protect members of the PPF and FAS from the impact of inflation by introducing CPI-linked increases, capped at 2.5% a year, on pre-1997 pension accruals where their original schemes provided this benefit, from January 2027. This will help ensure members’ pensions keep pace with the cost of living.
- Savers over the age of 65 will continue to be able to save up to £20,000 in a cash ISA each year.
- The £35,000 Winter Fuel Payments threshold will be maintained for this Parliament.
- The Scottish Government is receiving £820 million. This is on top of the largest spending review settlements in real terms since devolution in 1998 announced at the Spending Review 2025.https://www.gov.uk/government/publications/budget-2025-document
- Reeves announces boost of ex-mineworkers: https://www.itv.com/news/calendar/2025-11-26/reeves-announces-pension-boost-for-ex-mineworkers
- The average weekly state pension payment (including recipients of both the new state pension and the basic state pension) in Scotland was £222.60 per week as of May 2025, meaning a 4.8 per cent uplift will deliver an average boost of £556.