Scraps was first performed at the Orange Tree Theatre, Richmond, London in 1976. The musical was renamed and adapted for television by HTV in 1987, and featured Roger Daltrey, Paul Daneman, Jimmy Jewel and Twiggy. As originally conceived, "Mistletoe and Wine" had a different meaning from that for which it has come to be known. The writers wanted a song that sounded like a Christmas carol, intending it to be sung ironically while the little matchgirl is kicked out into the snow by the unfeeling middle classes. By the time the musical transferred to television, the song had become a lusty pub song sung by the local whore, as played by Twiggy.

Richard liked the song, but changed the lyrics to reflect a more religious theme (which the writers accepted).

Richard's ninety-ninth single, it became his twelfth UK number one single, spending four weeks at the top in December 1988 and selling 750,000 copies in the process. In the short six-week period since its release, it became the highest-selling single of 1988. Simultaneously, it also spent four weeks at the top of the Irish Singles Chart. In December 2007 the single re-entered the UK Singles Chart by virtue of downloads, peaking at number 68.

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