The Scottish government had been due to launch a Holyrood-managed equivalent. But SNP ministers said the prime minister’s decision left them £150m short and with no choice but to follow suit in imposing means testing.
The decision is expected to result in about 900,000 fewer pensioners in Scotland getting the payment.
With a bigger block grant coming its way, could the Scottish government now find the cash to fund universal coverage?
The Scottish government is being urged to replicate business rates relief for firms south of the border.
Holyrood sets its own business rates, called non-domestic rates. These are a form of property tax, administered by councils, which help to pay for local services.
The Fraser of Allander Institute estimates that it would cost £220m to replicate the business rates relief in Scotland – significantly more than the £147m generated via the Barnett formula by the decision in England.
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