Confusion remains over the future of the Winter Fuel Allowance in Scotland this coming winter.

Yesterday the Chancellor, Rachel Reeves, announced the allowance would only be paid to pensioners on Pension Credit.

The benefit, however, is to be devolved to the Scottish Government this year and replaced by a Pension Age Winter Heating Payment, worth the same amount of between £100 and £300.

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Following the Chancellor's announcement a Scottish Government minister has been unable to state whether the new Scottish payments would be means-tested like they will be in England.

Charities have urged the Chancellor to rethink the plan, which is expected to save around £1.5bn towards a newly identified £22bn spending gap.

Age Scotland said it would plunge tens of thousands of low-income pensioners who do not get pension credit into poverty.

Katherine Crawford, chief executive of Age Scotland, said: “The winter fuel payment is due to be devolved to the Scottish Government and our hope is that it will be restored as a universal benefit, particularly in light of the fact that Scotland does generally experience worse weather than other parts of the UK and more than half of those who receive it use it as an important part of winter budgeting.

"Keeping or reinstating the winter fuel payment will also ensure that money is going to those who need it most, when they need it most.” 

The budget for the payments in Scotland was estimated to be around £180m a year.

When asked about the new payments, Ivan McKee, Scottish Government Public Finance Minister said the decision will mean a cut in the budget for Scotland for winter payments.

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Speaking on BBC Radio, he said: “We think there will be at least £100m coming out of that, that we’d need to find from somewhere else if we want to continue to pay that winter fuel payment, which we absolutely want to do.”

Asked if it would need to be means tested, he said: “Who knows?”

McKe said the cut and warnings from the Chancellor there would be more meant that Labour was continuing with austerity.

He added: “It's absolutely austerity and there's no doubt about that"

He added: "During the election campaign Ian Murray said it was ‘mince’ that there was going to be Labour austerity cuts as a consequence of electing a Labour government, so when you've got him on your programme maybe get him to eat that ‘mince’ because he's been absolutely proved wrong."

Meanwhile, Ian Murray Scottish Secretary, said the £22bn overspend was “hidden” by the Tories.

He said: “Ivan McKee has got this completely wrong. It has got nothing to do with the arguments we had during the election campaign.

"There's no wholesale cuts here. There's no austerity here."