New Winter Fuel Payment rules introduced by Labour will be mirrored in Scotland, impacting pensioners in Dundee, Fife, Perthshire and Stirling.
The top-up will no longer be available to all pensioners.
Only those in receipt of benefits such as pension credit are eligible.
Ms Reeves used a bleak Commons statement on Monday to launch a furious attack on the Conservatives, claiming unfunded spending promises had left the Treasury with a £22 billion blackhole.
She said the introduction of a means test for the Winter Fuel Payment (WFP) was one of several “immediate actions” to address the issues uncovered by the audit ordered by Labour when it took office.
The change is likely to reduce the number of pensioners receiving the top-up cash by around 10 million, saving the public coffers £1.5 billion a year.
But the policy has sparked criticism from groups like Age UK, while money saving expert Martin Lewis said the new rules were “too narrow”.
What does the Winter Fuel Payment change mean in for you?
The Scottish Government has confirmed it has “no alternative” but to mirror the changes adopted by Labour.
Across Dundee, Angus, Fife, Perthshire and Stirling over 175,000 residents received the Winter Fuel Payment in 2022/23, designed to help with rising energy bills and the cost of living.
While the exact figure is not available, it is likely tens of thousands would have missed out under the new rules.
A new “pension age winter heating payment” was set to be rolled out this winter, and the intended eligibility were for it be available universally.
But the change at a UK level will affect Scotland’s budget, reducing the extra knock-on cash Holyrood receives.
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.”
Conversation