Following the total increase of £4.9 billion this year and next, SNP ministers will receive 20 per cent more funding per person than the equivalent UK spend.

A Scottish Labor spokesperson said all pensioners would receive the payment regardless of their income, but wealthier PAOs would have to repay an increasing proportion as they moved up the income scale.

However, he said the net profit would not decline to zero percent and everyone would receive something, regardless of their income.

The extraordinary turnaround comes amid growing panic in the ranks of the Scottish Labor Party after polls fell following the winter fuel payment announcement and furore over the ‘gifts’.

There were growing fears that the public backlash could deprive Mr Sarwar of his chance to replace John Swinney as prime minister.

“Pension credit eligibility criteria too low”

Mr Sarwar said: “A Scottish Labor Government will reinstate winter fuel payments for pensioners in Scotland. »

He added: “I have been saying for months that the eligibility criteria for pension credit is too low and I am calling for a Scottish solution to this problem.

“That’s why Scottish Labor will take back this delegated power from the DWP, reinstate the winter fuel payment and put in place a fairer system to ensure everyone who needs help gets it.

“A UK Labor government is cleaning up the mess left by a chaotic Conservative government – ​​here in Scotland people are demanding new leadership and in 2026 we have the opportunity to achieve this with a Scottish Labor government.

He argued that SNP ministers could also have maintained a universal winter fuel payment this year using £41m of “consequences” paid to Scotland thanks to the UK government’s extension of the Household support fund.

Jon Trickett, Labor MP for Hemsworth in West Yorkshire, tweeted: