HELPING HOUSEHOLDS ESCAPE FUEL POVERTY
· British Gas Energy Trust, incorporating the Scottish Gas Energy Trust, created more than £7 million in societal impact in Scotland over the past four years.
· Number of fuel poor households in Scotland has increased by 60% in past four years, rising from 610,000 to 980,000.
· 46% of direct grant recipients live in the most deprived areas of Scotland.
· Almost two thirds (64%) of beneficiaries in Scotland agreed that they were more satisfied with their lives after receiving support, compared to 54% who said the same before help.
British Gas Energy Trust, the independent charitable trust funded solely by British Gas, has created £264 million in societal impact – more than £7 million in Scotland – over the past four years, according to new analysis by Oxford Economics.
The report comes as the number of fuel poor households in Scotland has increased by 60% between 2020 and 20241, rising from 610,000 to 980,000, due to rises in fuel prices and cost of living. The analysis by Oxford Economics found that, at the peak of the crisis, more than two-fifths (41%) nationwide reported difficulty in paying their bills during this time.2
In response, British Gas Energy Trust, which incorporates Scottish Gas Energy Trust, has tripled its expenditure across the UK, enabled by boosted funding from British Gas, to provide essential support to those who need it most. Since the launch of the Trust in 2004, the energy provider has contributed over £200 million in donations, helping more than 2.2 million nationwide.
In the past financial year 2023/24, British Gas Energy Trust created £40 million in net benefits to society in England, £7 million in Scotland and £2 million in Wales. The impact of the Trust is seen particularly in areas of acute need where people are more likely to be at risk of fuel poverty, with 46% of direct grant recipients living in the most deprived areas of Scotland.
The social return on investment (SROI) in the Trust during this time is 5.5. For every £1 spent by the British Gas Energy Trust, it created £5.50 in value for society – more than double that of the previous report undertaken by Oxford Economics which was 2.4 for the financial year 2014/15. When breaking down the impact of each of the Trust’s programmes, the scheme which provides grants to support-focused organisations saw the highest SROI at £6.50.
Looking at the Trust’s broader economic benefits to society in the last four years, £11 million of additional gains has been made for the exchequer across the UK through additional tax revenue and savings to the NHS by alleviating pressures which negatively impact people’s wellbeing.
Amongst beneficiaries of British Gas Energy Trust, almost two thirds (64%) of beneficiaries in Scotland agreed that they were more satisfied with their lives after receiving the support and guidance, compared with 54% who said the same before receiving support.
The purpose of the British Gas Energy Trust is to alleviate the detrimental impact of fuel poverty through three main programmes. This includes:
· Direct grants programme, helping people to clear fuel debt arrears;
· Financial Assistance Payments (FAP) programme, offering fuel vouchers directly to individuals and families;
· and the Supporting Communities at Risk Programme (SCARP) which funds charity advice agencies across Britain who provide holistic money and energy advice to individuals who have been disproportionately impacted by fuel poverty. This includes those with additional needs such as electrical medical health requirements or disabilities
Jessica Taplin CEO of British Gas Energy Trust said:
“We had a clear goal for the Trust when it was set up 20 years ago – to alleviate the detrimental impact of fuel poverty. With the support of our grant and funded organisation programmes, this new report brings home the positive impact we’ve made so far – but it doesn’t end there.
“Our fight to help people in fuel poverty continues and this year to mark our 20th anniversary, we’re building on our understanding of the issue from the front line, by visiting charities and third sector organisations who support those most at risk of fuel poverty, and hearing from people affected, to take stock on what really helps and the barriers we still need to overcome.
“The aim is to identify and fund future interventions that are proven to support the most vulnerable communities while gathering meaningful lessons to influence societal change and see significant reductions in fuel poverty over the next decade.”
Chris O’Shea, Chief Executive of Centrica, parent company of British Gas and Scottish Gas, said: “The impact that the British Gas Energy Trust has had has been phenomenal. Not only is it reaching people in some of the most deprived areas across the country, it is also positively impacting people’s lives, supporting them with financial aid and guidance in their time of need.
“While it’s been good news that food and energy prices are falling, for many households the cost-of-living crisis is far from over. That’s why we’ve put £140 million into supporting those who need help the most. We will be continuing to work closely with the Trust to ensure that this work continues and to help alleviate the pressures so many are facing – now and in the future.”
Chris Warner, Lead Economist at Oxford Economics, said: “The report underscores the efficacy of interventions targeting fuel poverty to create social value and demonstrates the profound effect of British Gas Energy Trust’s programmes on its beneficiaries’ sense of wellbeing.
“Ultimately, it showcases why charities such as the Trust should collect comprehensive yet proportionate data on their beneficiaries in order to understand and communicate their impact.”
In the upcoming months, British Gas Energy Trust – which incorporates Scottish Gas Energy Trust – is hosting a series of roundtables throughout the year in some of the UK’s deprived areas with its funded organisations to gather insights to help drive further systemic change to reduce fuel poverty.
The locations include, London (Bromley-by-Bow), Glasgow, Doncaster, Newcastle, Bristol, Cardiff, and Leicester.
To find out more to apply for financial grants or support from the British Gas Energy Trust, visit:
https://britishgasenergytrust.org.uk/who-can-apply/
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