This move comes as part of an extension of the Pension Age Disability Payment (PADP) to 13 more local authority areas, including Fife, ahead of its national rollout on April 22.
The PADP is designed for people of state pension age living with disabilities or long-term health conditions.
It aims to be a ‘fairer and more respectful’ alternative to the existing UK-wide Attendance Allowance.
This initiative automatically entitles the terminally ill to the highest level of payment, irrespective of their life expectancy.
The payment, which is not means-tested, will range between £290 and £434 a month, rising to between £295 and £441 from April 1.
Annabelle Ewing, MSP for Cowdenbeath, said: “Despite assaults on welfare coming from Westminster, with the UK Labour Government ditching the Winter Fuel Payment and slashing PIP provision, I am delighted to see the SNP Scottish Government continuing to deliver the financial support our older people need and deserve.
“The rollout of the Pension Age Disability Payment to Fife is very welcome indeed and it is particularly important that those who are terminally ill will now be automatically entitled to the highest level of payment, regardless of life expectancy – a marked change from Westminster’s Attendance Allowance.
“This takes away an unnecessary worry and complication from people at a time when they should be supported in focusing their attention on the time they have left with loved ones.
“The SNP Government is firmly committed to the creation of a social security system that is fairer and more compassionate than that which has been delivered through the DWP with a culture that encourages staff to be pathways rather than obstacles to people securing the support they are entitled to.”
She urged all potentially eligible constituents to apply for this new benefit..