SNP First Minister John Swinney warned Anglea Rayner today hat “tens of thousands” of pensioners in Scotland will be affected by means-testing winter fuel payments.

Mr Swinney, who met the Deputy PM at Bute House, told her that Chancellor Rachel Reeves’s decision last month to limit the payment to pensioners claiming income-related benefits would cost the Scottish government £160 million.

This would force Holyrood to mirror Labour’s policy in the Scottish version, known as the Pension Age Winter Heating Payment.

Mr Swinney said: “Scotland faces the most challenging financial circumstances in the devolution era and has no alternative but to replicate this decision, which will impact tens of thousands of pensioners in Scotland.”

Of the meeting, aimed at resetting previously strained relations between Bute House and No 10, the First Minister repeated his calls for “an injection of investment” for public services “to deal with rising pressures and the ongoing cost of austerity.”

Mr Swinney also showed unity between the two governments in the face of recent race riots and escalation of far-right activity.

“Both governments restated their duty to tackle hatred of any kind,” he said.

“We have a responsibility to confront racism and religious prejudice wherever and whenever it appears, including on social media.”

A UK government spokesperson described the meeting as “productive and positive,” but added: “The £22 billion black hole in the public finances the government inherited from the previous administration has required us to take difficult decisions.

“We are working closely with the Scottish government to make this as smooth a transition as possible, and more importantly ensure eligible pensioners continue to receive support.”