£2 million funding boost for housing payment scheme
A scheme helping low-income households avoid homelessness will receive an additional £2 million this year.
The Discretionary Housing Payment scheme provides direct financial support to low-income households struggling with housing costs and helps people to retain their tenancy in the rented sector.
The additional funding takes this year’s investment in the scheme to a record £117 million. This will help an estimated 100,000 households in Scotland sustain their tenancies. The scheme is the main way the Scottish Government mitigates the impacts of the UK Government’s ‘bedroom tax’ and benefit cap.
Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville said: “Our Discretionary Housing Payments are a vital lifeline to families at risk of losing their home and help protect people from the UK Government’s damaging bedroom tax and benefit cap policies.
“Our scheme is delivering and providing direct support to low-income households – helping to reduce poverty, safeguard tenancies and prevent homelessness. In Scotland, we offer a level of support not available elsewhere in the UK, and our different approach is working.
“However, the UK Government’s decision to freeze the support given to private renters at 2024 levels means people are struggling to pay their housing costs – this is driving homelessness and putting families at serious risk.
“I am extremely disappointed the Chancellor chose not to use his Budget to end the freeze and give households the breathing space they desperately need.”
Unacceptable numbers of us already teetering on knife’s edge with one in six people in Scotland running out of food in past year, unable to afford to buy more, Trussell says
ANTI-poverty charity Trussell reports that 550,000 people across Scotland in 2026/27 – have so little to get by on that they are at risk of needing to use a food bank. Analysis from WPI Economics shows that this includes an increase of 25,000 people since 2024/25.
A survey conducted by Ipsos on Trussell’s behalf shows that unacceptable numbers of us are already living on a knife’s edge day-to-day, going without food and making impossible sacrifices, the charity says.
One in six (17%) people in Scotland said that their household had run out of food and couldn’t afford to buy more in the previous year, according to the new research, with certain groups such as disabled people and carers, more likely to go without.
The charity is calling on the Scottish Government to redouble its efforts to ensure more people in Scotland can afford at least the essentials, by acting in the Scottish Budget to increase the Scottish Child Payment to at least £40 a week with immediate effect.
New figures from Trussell show one in ten (10%) people in Scotland have had to cut back on food in the previous three months to afford other essentials like their housing costs, transport to work, or their heating.
Alarmingly, certain groups in Scotland, such as disabled people and carers, are more likely to go without.
Disabled people – 28% in Scotland had run out of food and couldn’t afford to buy more (compared to 13% of people who are not disabled)
Households with a disabled family member – 25% in Scotland had run out of food and couldn’t afford to buy more (compared to 12% with no disabled household member),
Carers – 26% in Scotland had run out of food and couldn’t afford to buy more (compared to 13% of those with no caring responsibilities)
The research also reveals that work is not protecting people from hardship – almost 1 in 5 (19%) working people in Scotland ran out of food and couldn’t afford to buy more.
In the Scottish Government’s Budget next month, Trussell is calling on the Scottish Government to reaffirm its commitment to ending the need for food banks in Scotland and update its action plan to deliver on this commitment.
The charity says it should start with getting more money into people’s pocket’s by boosting the Scottish Child Payment to £40 a week with immediate effect and committing to a longer-term increase to £55 a week.
Cara Hilton, senior policy manager for Trussell in Scotland, said:“It’s devastating that half a million people in Scotland are at risk of needing to use a food bank. In every community, in every part of Scotland, people are skipping meals so their kids can eat, sitting freezing because they can’t afford money for the meter, feeling isolated and alone, not sure where to turn for support.
“Every day, people are pulling together across communities to make a difference – donating and getting emergency food to neighbours and providing advice and support so that people don’t need to turn to a food bank in the future. But together we can and must go further, particularly as prices rise once more.
“If we’re going to build the fairer Scotland we all want to see, we need politicians to take the heartbreaking scale of hunger in Scotland seriously. We need to invest now in a better future for children and for Scotland.
“The First Minister must renew the SNP’s promise to end the need for food banks in Scotland and take strong action in the Scottish Budget, to make sure more people in Scotland can afford the essentials and all children have a decent start in life.”
Pam from East Dunbartonshire, a former police officer who has been supported by a food bank, said:“Having had a career serving the community where I witnessed poverty and hardship on a daily basis, I didn’t ever believe I’d be on the other side of that fence. You never know what curveballs life will throw at you, though.
“We desperately need a society where if you trip and fall, there will be someone or something there to catch you rather than what happens now where a charity has to step in and help you pick up the pieces after you break.”
Fiona Dalgleish, manager of Peeblesshire Foodbank, said:“It’s not right that anyone in Scotland doesn’t have enough money to live on. Every week, our wonderful staff and volunteers provide a lifeline through emergency food parcels and practical support to everyone who needs it.
“We’re really worried about winter. We are doing everything we can to support people in our communities as the colder months close in. But the rising cost of food and energy will make it even harder for us to keep services running.
“Keeping the lights on and spaces open costs money, which is why any support you can give, whether that’s donating food or funds, will make a real difference.”
Energy costs lowered as home heating oil tariffs removed and 0% VAT on household electricity extended.
Growth backed with investments in Glasgow and Edinburgh.
The Scottish Government will have an additional £600 million for public services.
Families and businesses in Scotland will get breathing space from action announced in Budget 2026.
Against a backdrop of global uncertainty, rising energy costs and pressure on household finances, Chancellor John Healey has taken action on the cost of living, fuel prices, and local jobs — alongside more funding for the Scottish Government to provide public services.
In the Budget, John Healey announced:
Support with energy bills: The removal of the 4% tariff on kerosene will support the 142,000 Scottish households that rely on heating oil. The UK government will extend 0% VAT on household electricity bills for three months, to 30 June 2027, while a Debt Relief Scheme will write off crisis-era debt for eligible households.
Fuel: the extension of the 5p cut to fuel duty for a further six months until 30 June 2027. The 3.7p cut to red diesel duty continues, which matters for farmers, rural hauliers and other fuel-heavy users across Scotland. He also announced a permanent increase to the generosity of mileage rates to support those who drive for work.
Food prices: Tariffs axed on over 100 food products, including chocolate and fruit juice. Combined with tariff suspensions earlier this year, this will save households up to £21 annually.
Pensions: by the end of this Parliament, 93,000 low-income pensioners in Scotland will pay less tax or none at all on their income, as a result of reducing the disproportionate administrative burden of paying small amounts of tax.
Wages: Increasing the National Living Wage by 3.9% to £13.21 per hour and the National Minimum Wage by 3.9% to £11.27 per hour for 18 to 20-year-olds and by 3.9% to £8.31 per hour for 16 to 17-year-olds and eligible apprentices. An estimated 180,000 workers in Scotland saw a direct pay rise following April 2026’s increase to the National Living Wage and National Minimum Wage.
Backing growth in Scotland
The establishment of a new Energy Wealth Fund to support Scottish clean energy jobs way into the future.
£18 million will fund a UK Advanced Chip Design Academy led by the University of Edinburgh, building on Scotland’s strengths in advanced technology.
£6 million will expand Glasgow’s Scottish Event Campus (SEC), subject to business case, allowing the venue, which hosted COP26 and the Commonwealth Games, to go bigger and better.
£20 million will see the creation of two Defence Technical Excellence Colleges in the East and West of Scotland.
Extending duty suspensions for 350 goods to help businesses in the chemicals, plastics, hydrogen, automotive and food and drinks sectors.
The Budget strengthens Britain’s national security by fully funding the £15 billion Defence Investment Plan, including £4.7 billion that was previously unfunded. Defence spending supports 12,200 industry jobs in Scotland, up 7% from 2025.
Secretary of State for Scotland, Douglas Alexander, said: “This is a budget that puts money back in the pockets of Scottish households, backs businesses, and puts Scotland firmly at the heart of the UK government’s plan for growth and reindustrialisation.
“We’re helping families tackle the cost of living by cutting the standing charges from gas bills, saving households around £45 a year, then looking to remove them altogether. We’re also extending the VAT cut on energy bills, as well as removing the tariff on heating oil.
“But we’re not just easing the pressure today, we’re building Scotland’s future. £18 million for a semiconductor manufacturing research centre at the University of Edinburgh, £6 million to expand the Scottish Event Campus and grow on the legacy of COP26. That’s creating jobs and good growth in every postcode.
“There’s a boost for Scotland’s public services too, with an extra £600 million for the Scottish Government to spend.”
Funding for public services
The Scottish Government’s main source of funding comes through the block grant. This includes money collected from taxpayers across the UK – including from people in Scotland – which is then available for the Scottish Government to spend on devolved services. The Scottish Government also raises its own revenue, through the Scottish Rate of Income Tax, and non-domestic rates on businesses, for example.
Spending Review 2025 provided the Scottish Government with their largest spending review settlements in real terms since devolution in 1998, receiving an average of £50.9 billion per year between 2026-27 and 2028-29.
Changes in the devolution roadmap may have an impact on the funding of the devolved governments. Our approach to fiscal devolution in Scotland, Wales and Northern Ireland is already well established, however, we will engage with devolved governments on any implications for their budgets in the usual way to ensure they continue to be funded to deliver a comparable policy offer.
The Scottish Government has at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. The higher amount reflects that providing services across Scotland genuinely costs more. This means that for each £1 of equivalent UK Government spending in the rest of the UK, the Scottish Government has at least £1.20 to spend per person in Scotland.
The Scottish Government will receive an additional £600 million, on top of an additional £1.7 billion from Budget 2025 and Spring Forecast 2026.
Ian Murray MP – the MP for Edinburgh South – has welcomed cost of living support for families as the Labour Government announced its Budget today.
John Healey’s Budget provides breathing space for families by extending the cut to fuel duty and the removal of VAT from household energy bills.
It also sets out a plan to abolish gas standing charges, which will save the majority of households an average of £45 a year.
The Budget provides an additional £600mn for Scottish public services, meaning that the Scottish Government have received over £18bn in extra resources since Labour came to power in July 2024.
Across Scotland, Labour also announced it was investing in the Edinburgh-Glasgow Central Belt, a key area for world-leading strengths as identified in the UK’s Modern Industrial Strategy, through £6mn of new funding to expand Glasgow’s Scottish Event Campus (subject to business case) and £18mn new funding for a UK Advanced Chip Design Academy led by the University of Edinburgh.
Ian Murray MP said: “These are Labour decisions: backing families and businesses today while building a stronger Britain for tomorrow.
“I know people are struggling with the cost of living. I see it every day in my constituency mailbag.
“That’s why we’re extending the cut to fuel duty and the removal of VAT from energy bills, and working to abolish gas standing charges.
“It’s also why the Chancellor announced a £100 energy support payment to households in Council Tax bands A – D in England.
“That money will be passed onto the Scottish Government via the Barnett Formula. It’s now over to them to ensure the support is passed onto households here in south Edinburgh and across Scotland.”
UK Budget delivers ‘real cut’ to Scotland’s funding
JENNY GILRUTH – Action on energy bills ‘falls short of what is needed’.
The UK Budget delivers a real terms cut in Scotland’s budget of around £650 million in 2027-28, the Deputy First Minister has warned.
Scotland’s resource block grant is set to reduce by 1.3% in real terms in 2027-28, equivalent to a reduction of around £550 million. Scotland’s capital budget will see a 1.5% real terms reduction in 2027-28, equivalent to around £100 million.
The Deputy First Minister also confirmed that the Scottish Government will ensure that households in Scotland benefit from the £100 payment for energy bills support.
Jenny Gilruth said that while any measures to bring down the cost of energy bills are welcome, the steps confirmed by the Chancellor today fall far short of what is required and do not meet the promises on which the UK Government came to office.
The Deputy First Minister said: “The Scottish Government’s budget will be cut by around £650 million next year – reducing the money we have to spend on public services and supporting people with the cost of living.
“The Prime Minister has previously claimed that he would respect devolution and the Scottish Government – but his actions do not match his words. Cutting Scotland’s budget shows that, yet again, we are being treated as an afterthought.
“The Scottish Government will ensure that households in Scotland will benefit from the one-off £100 payment for energy bill support, however, it is clear that the measures announced today fall far short of the action which is required. “
“Furthermore, this support does not come close to meeting the promises on which the UK Government came to office, including reducing energy bills by £300 which remain significantly higher than they were in July 2024. The UK Government has failed to meet the moment and has failed to keep its promise.
“It is also unacceptable that there was no announcement about ending wider austerity policies which are pushing families into poverty like the bedroom tax, the benefit cap and “young parent penalty” in Universal Credit which would make a significant difference to tackling poverty.
“The Chancellor had the opportunity to lift thousands more families out of poverty, and he has chosen not to.
“We will now take the time to assess the full implications for Scotland of today’s statement.
“I will be announcing further details as part of the Scottish Budget on 3 December.”
Anti-poverty campaigners say Budget won’t share the wealth
The Poverty Alliance welcomed Budget moves to help people with rocketing energy bills – but warned they won’t go far enough to help people in fuel poverty.
Peter Kelly said: “There are nearly 750,000 households in Scotland who are in fuel poverty. The energy price cap today is £1,723, and in January it’s predicted to rise to nearly £2,000. In that context, a payment of £100 is welcome, but it won’t be enough for people who are already being pushed into debt and arrears.
“As well as looking at standing charges on energy bills, the UK Government must bring in a social tariff – making sure that no-one is hit with bills that they simply can’t afford to pay.”
Scotland’s anti-poverty network expressed disappointment at the lack of any major extra investment in social security.
Peter Kelly said: “We can’t expect people to build a life out of poverty on quicksand. When rates of Universal Credit and other social security payments are too weak to support people, it pushes them closer to destitution and makes it harder to build a better future.
“We hope that the forthcoming reviews into support for disabled people and young people have clear vision for improving financial security and investing in a stronger society for all of us.”
The Poverty Alliance also expressed disappointment over the Chancellor’s failure to tax wealth in the same way that work is taxed.
They had backed calls to equalise the way Government treats wealth and work, by bringing rates of Capital Gains Tax into line with Income Tax.
Tax Justice UK estimates the move could have raised £14 billion for the Treasury, with the Scottish Government getting over a billion pounds a year extra for its budget.
Peter Kelly said: “People are losing faith in politics because they feel that politicians aren’t working to meet their needs. Taxing wealth in the same way as work would bring in extra resources that we could invest in building a better future, and a more just and compassionate society.
“We all rely on social security and local services being there when we need them – and for people who are pushed into poverty, they are an essential lifeline.
“The money raised from fairer taxes on wealth could have been used to take more children out of poverty.”
STUC: Budget provided sticking plasters when Scotland needs radical surgery
Reacting to the UK Government’s Budget, STUC General Secretary Roz Foyer said:“We always knew exorcising the ghost of Thatcher and eradicating 40 years of neo-liberalism was going to be a tall order for the Chancellor and there are some welcome tricks in the Budget, but not enough to scare away fears of rising costs.
“Whilst this Budget offers some helpful sticking plasters on energy costs, cost-of-living support and food prices, it falls short of the radical surgery needed to fix the UK economy and support working-class communities. Perhaps most significantly, the Budget failed to set out the radical rewiring of the state and the end to neo-liberalism that the Prime Minister himself had promised.
“Payments to stave off the cold for those in targeted council tax bands are a good first step in lieu of bringing down wholesale energy bills and it is right that the Chancellor has listened to the calls of unions to tax the banks to fund this measure. However, bills are likely to rise far quicker than this payment can offset and we will continue to press the UK Government to go further and faster, given the ‘big four’ banks made £29 billion in the first six months of 2026 alone
“With an expected £600 million allocated to Scotland, Scottish Government ministers cannot credibly sit on their hands and plead poverty. The Scottish Government should urgently review its public sector cuts agenda in light of this Budget.
“Rewiring the state will take longer than just one Budget and changes to procurement rules which strengthen British jobs and domestic supply chains are to be welcomed.
“The commitments made on defence spending require further examination, but unions are clear that funding for defence cannot come from public sector efficiencies. Co-funding for Defence Technical Excellence Colleges (DTECs) in both the east and west of Scotland is welcome and should help provide well-paid, unionised jobs.
“This Budget doesn’t yet offer the concrete reindustrialisation Scotland needs, nor the further devolved powers for our Parliament and local authorities that had been envisioned. The Prime Minister must work at pace to show that his words on ensuring communities are empowered from the bottom-up, rather than the top-down, were not hollow.
“Workers can ill afford any further delay to the hope that was promised to them.”
Responding to Chancellor John Healey’s Autumn Budget, Morgan Vine, Director of Policy and Influencing at Independent Age said:“Today’s Budget made some important commitments that will play a part in easing the financial burden on people of all ages, including those in later life that Independent Age supports.
“We’re pleased to see changes we’ve campaigned for, alongside older people on low incomes, including protecting the poorest pensioners from tax bills as their State Pension increases – a decision that will help current and future pensioners. And some support for energy customers to ease spiralling bills, including providing £100 directly to households in England’s higher council tax bands (A-D) through the Household Energy Payment scheme.
“However, some serious problems remain unaddressed. We believe the UK Government can go further to tackle key areas driving financial hardship across all generations. Every day we hear from older people on low incomes who are cutting back on food, living in cold homes, or skipping showers to keep their bills down. This is no way to live.
“Frozen Local Housing Allowance that keeps private renters of all ages stuck in poverty needs to be uprated to reflect the true cost of renting. We need long-term action to protect the poorest households from the frequent energy price shocks driving up bills with the introduction of a comprehensive and well targeted energy social tariff. And, to lift people out of water poverty, a single social tariff for water is needed across England and Wales to end the postcode lottery of support.
“We will continue to stand alongside older people on low incomes, and work with the UK Government to build on the positive steps taken today.”
Helen Barnard, director of policy and research at Trussell, said: “We are disappointed that the government has not acted today on one of the biggest pressures facing low-income renters.
“We welcome seeing the significant support provided for people’s energy bills, which will make a real difference as the colder months draw in. However, the decision to keep housing support for private renters on low incomes frozen is a misstep that will continue to drive people towards homelessness and to the doors of food banks.
“We know from our research that over half of private renters on low incomes in receipt of Local Housing Allowance to help pay their rent, have run out of food in the last 12 months and haven’t been able to afford more. Nobody should be forced to choose between paying the rent and putting food on the table. But for increasing numbers of UK renters this is already a bleak reality.
“If the Chancellor is serious about tackling the cost of living, the best test will be whether fewer people need to turn to a food bank because they can afford the essentials like rent, energy bills and toiletries.
“The government has already taken bold steps towards this, including by lifting the two-child limit, However, unless we see action to close the gap between support and essentials like rent, the UK government will fail to meet its manifesto promise to end the need for emergency food.”
Amie, 45, who has experience of turning to a food bank, said: “Every week I’m forced to choose between keeping a roof over my head or putting food on the table, even though I work – just like so many people on the lowest incomes. As the cost of rent has skyrocketed, I had hoped the Chancellor would see sense and unfreeze Local Housing Allowance today so it actually meets the costs of renting a home.
“The extra help with energy bills announced today will help but I’m disappointed the government hasn’t chosen to act on the biggest problem my family is facing, which is keeping a roof over our heads.
“I don’t struggle to pay for our housing because I can’t budget, I struggle because the cost of my rent keeps rising far beyond what I can pay and the support just isn’t there. That leaves families like mine constantly having to make impossible decisions.
“Tomorrow I’ll still wake up worrying about the same things I’ve been worrying about for months. How am I going to cover the rent? Will there be enough left for food? Those are the questions families like mine will still be asking.”
Commenting on the UK Government’s Budget announcement, COSLA Resources Spokesperson Councillor Kelly Parry said:“Councils are central to local economies, tackling child poverty, and delivering key community services.
“For this reason, the elements of the UK Budget that signal further devolution of power are encouraging, however single-year budget settlements from UK Government and Scottish Government are still not allowing councils to achieve their full potential.
“As we look ahead to the Scottish Government’s Budget on 3rd December, it is vital that Ministers prioritise local government with a fair, flexible, and sustained funding settlement.
“Removing ring-fencing and single-year budget constraints will empower councils to invest in preventative services and deliver real, long-term change for our communities.”
Responding to the Scottish Government’s new Benefit Take-up Strategy, released yesterday, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Today, the Scottish Government published its third Benefit Take-up Strategy. As the charity for older people facing financial hardship, we know firsthand how important income maximisation is for the older people in Scotland that we work with.
“With over £350 million going unpaid every year to older people on low-incomes, improving take-up of social security is essential to tackling poverty in later life. Our research shows that if there was full take-up of Pension Credit, Housing Benefit and Council Tax Reduction across Scotland, 30,000 older people would be pulled out of poverty and there would be a £90 million reduction in health and social care spending each year.
“However, our Older People’s Index 2026 revealed that 1 in 5 older people don’t know about Pension Credit, and around 1 in 4 don’t know about Council Tax Reduction and Housing Benefit, with even lower awareness of support like the Scottish Welfare Fund. So, this strategy and the actions proposed are incredibly important.
“We are therefore pleased to see a greater focus on how agencies can work together to increase take-up across all entitlements including those reserved to Westminster.
“We also welcome moves to better use existing data to help people access their entitlements no matter who administers them and look forward to seeing measurable progress.”
Call to scrap ‘punitive’ welfare policies and cut bills
The Scottish and Welsh Governments have called on the UK Government to scrap “punitive” welfare policies, adopt plans to cut energy bills, and to further devolve powers to help drive continued progress in tackling poverty.
In a joint letter to the Secretary of State for Work and Pensions Pat McFadden and Education Secretary Lucy Powell, Scotland’s Social Justice Secretary and the Welsh Deputy First Minister have urged the UK Government to scrap the benefit cap, bedroom tax and the freeze to local housing allowance – which is widening the gap between housing benefits and real-world rent, driving homelessness and poverty.
The calls extend to pressing the UK Government to adopt Scottish Government proposals for a social tariff in the form of targeted bill discounts, with published modelling showing that 660,000 households in Scotland would see their estimated fuel bills go down by an average of £700.
The Scottish and Welsh Government signed the Cardiff Agreement last month, pledging to work together on areas including tackling child poverty and the cost of living.
Scotland’s Social Justice Secretary Shirley-Anne Somerville said: “Scotland and Wales are clear – we need to see far more from the UK Government to support people with the cost of living, and to support us in our efforts to end child poverty.
“Scotland is one of the most energy rich nations in the world but we pay some of the highest bills in Europe, already hundreds of pounds higher than was promised when the UK Government came to office. It is causing real hardship across the country and is a key driver of poverty.
“The Scottish and Welsh Governments are also clear that we need more action from the UK Budget to support our work on child poverty – that includes ending the cruel benefit cap which is punishing children for circumstances beyond their control.
“This has never been more pressing, with DWP’s own data showing that the number of Scottish children impacted doubled to nearly 20,000 between March and May this year.
“Our game-changing Scottish Child Payment shows the innovative and ambitious policies we can implement where we have the power. It shows why we need more powers in Scotland and Wales, rather than seeing them hoarded by the UK Government.
“The UK Government must now take action in their Budget to cut bills and boost living standards. And if they will not, they should hand the powers over to a Scottish Government that would.”
Deputy First Minister and Cabinet Minister for Social Justice and Equality Sioned Williams said: “We all share the belief that no child’s life should be limited by poverty. Tackling poverty is a priority for this Welsh Government, and we are addressing it in a number of ways including expanded funded childcare, and delivering a new child poverty strategy with meaningful targets.
“While we are taking firm action wherever we can, we need the UK Government to play its part and our joint letter with the Scottish Government calls for a clear set of actions to support us in tackling child poverty. This is not only about those levers which remain with the UK Government but also about supporting us to effectively use our own powers.
“An example of this is the Cynnal child payment in Wales. This can only succeed with the co-operation of the UK Government to ensure that those receiving the payment are not penalised by having their entitlement to other benefits reduced, allowing children and families to receive the maximum possible support.
“I call on the UK Government now to work with us and give us the assurance that we can make a real difference with this scheme.
“Introducing a social tariff is also key, and I join colleagues across in UK in calling for this to be introduced urgently. In many areas such as this it is the UK Government who can make the difference and the budget is the opportunity to do this for families in Wales and across the UK.”
The need for school uniform support doesn’t just happen at the start of the term—growth spurts, changes in circumstances, or unexpected hardships can happen at any time of the year.
We want every family in Edinburgh to know that support is available, whether you need emergency help or a discreet option right inside your school.
Head to the following link to find out more about how our referral system works or how your school can partner with us: https://edinburghuniform.org/packs/
Consumers urged to check doormats and letterboxes for a letter confirming £150 off bills
345,000 Scottish households to receive the Warm Home Discount automatically this winter – an increase of around 250,000
This follows action to remove VAT from electricity bills, giving people breathing space on the cost of living
From today, Scottish households should check their doormats and letterboxes for confirmation they will get £150 off their energy bills this winter.
Around six million households across Britain will benefit from the Warm Home Discount this winter, with nearly 2.3 million additional families, including around one million with children, receiving the rebate last year after the expansion of the scheme.
This winter, 345,000 Scottish households will receive the £150 rebate automatically – an increase of around 250,000 – benefitting from reforms to the way the Warm Home Discount is administered.
The onus has previously been on many Scottish households to get in touch with their supplier to receive the money. These changes have simplified the process for the majority of those eligible in Scotland, bringing the scheme closer into line with that in England and Wales – where most recipients already get the rebate automatically.
The Warm Home Discount follows on from the VAT cut on electricity bills in October, capping bus fares at £2 and removing £150 of costs off bills earlier this year, giving families breathing space this winter.
Minister for Energy Consumers Polly Billington said:“I know that many Scottish families will be struggling with their energy bills this winter.
“That is why I urge those who think they qualify for the Warm Home Discount to keep an eye out for a letter confirming their eligibility.
“Energy is an absolute essential, which is exactly why in October we cut VAT on all electricity bills and earlier this year we removed £150 of costs off bills, giving families breathing space this winter.”
Letters will be issued from this week through to January 2027 and will advise if the recipient will either get the Warm Home Discount automatically or if they need to phone the helpline to receive the money.
Households asked to phone the helpline and provide extra information to ensure they get the discount this winter must do so before 26 February 2027.
Almost three-quarters of Edinburgh residents (73.5%) have had to use their savings over the past 12 months to cover everyday outgoings as they contend with the cost-of-living crisis.
New data from Scottish Building Society’s Savings Barometer 2026 reveals that 74.7% of people in Edinburgh believe the economic climate has negatively affected their finances over the past year.
Launched in 2025, Scottish Building Society’s Savings Barometer tracks savings habits across Scotland. This year’s findings come as rising prices continue to put pressure on household finances, with annual inflation reaching 3.1%.
For many Edinburgh residents, economic pressures have forced a change of plan with their finances, with more than seven in ten stating they had scaled their financial goal back, extended the time to reach it, or put it on hold altogether.
Nearly three-quarters (73.5%) of those in Edinburgh said they were concerned about their ability to save at all throughout 2026.
Of those able to save, a holiday was the most common savings goal, cited by 33.3% of respondents, compared with 17.5% saving for a new car and 17.1% for a new home.
Their responses mirror the national outlook. Nearly three in four Scots saw their finances negatively affected by the current economic climate, and 65.5% had used their savings to pay for day-to-day outgoings.
Across the different generations, 71.7% of millennials, 67.8% of Gen Z, 64.0% of Gen X and 60.7% of baby boomers said they have had to dip into their savings in the past year.
Paul Denton, CEO at Scottish Building Society, said:“This research is a stark reminder of the pressure Edinburgh households are under. When almost three-quarters have had to draw on their savings over the past year to cover everyday costs, it is clear that, for many, the priority is getting through the month rather than saving for longer-term plans.
“What’s clear from the research is that people want to save, but we know that finding money to put aside can be difficult when household budgets are stretched.
“We want to help people make whatever they can save work as hard as possible for them, whether they are rebuilding a buffer after dipping into it or saving towards a particular goal. There is no one-size-fits-all approach, and even a small amount set aside when circumstances allow can help people feel more prepared for what lies ahead.”
Scottish Building Society is the only building society headquartered in Scotland. Established in Edinburgh in 1848 as the Edinburgh Property Investment Company, it is the oldest remaining building society in the world.
As a member-owned mutual, it offers savings accounts and mortgages, reinvesting surplus profit for the benefit of those members.
The past five years of a near-continuous cost of living crisis have caused the real incomes of typical working-age households to fall rather than grow, leaving them £2,900 (7.9 per cent) worse off this year compared to a world of normal inflation, according to new analysis published today (Thursday) by the Resolution Foundation.
The report Counting the cost, funded by the Nuffield Foundation, assesses the toll of three crises (the post-pandemic supply shock, the invasion of Ukraine, and conflict in the Middle East) that have already delivered 13 years’ worth of ‘normal’ inflation in five, with inflation peaking at 11.1 per cent and prices nearly 30 per cent higher in August 2026 than July 2021.
The report details how energy has been at the epicentre of this price shock. By the autumn of 2022, household energy bills had more than doubled since the start of the crisis. Higher energy costs then bled into other prices: food inflation peaked at nearly 20 per cent in March 2023, and services inflation reached 7.4 per cent in July 2023, its highest level in more than three decades.
Household energy bills and food together account for a quarter of the change in the price level over this period.
The pain felt from these price rises has not been shared equally. Inflation was steepest for essentials, which make up a larger share of poorer households’ spending. As a result, the rise in non-housing costs since before the pandemic has been around one-sixth bigger for the poorest tenth of households than for the richest tenth.
Overall, the report finds the real incomes of a typical working-age household this year (2026-27) are £2,900 a year lower than they would have been compared to a world in which inflation had stayed at 2 per cent over the past five years.
The hit has been similar in scale for households across the distribution. Despite tens of billions in government support, the scars from the cost of living crisis are no smaller for low-income families, and much harder to bear.
The analysis also confirms that between 2020-21 and 2026-27, real median income after housing costs for non-pensioners looks set to fall by 1.3 per cent (£450). Incomes at the 25th percentile are set to fall by 1.2 per cent (£270), while better off households at the 75th percentile will see marginal income growth of 0.3 per cent (£130).
Families have responded to higher prices by heating their homes less – with an extra 1.7 million households saying they were unable to keep warm enough in 2022-23 compared to 2021-22 , 950,000 of whom were in the poorest 40 per cent of the population.
The poorest tenth of neighbourhoods cut energy use by 15 per cent more than the richest in response to price rises in 2023. There were also larger cuts in usage in colder areas, meaning the biggest adjustments happened in the places where those most vulnerable to a gas price shock are more likely to live.
Arrears are also mounting as families fall behind on priority bills, such as energy, water, Council Tax and rent. By March this year, almost one-in-five (18 per cent) households in the poorest half of the country were behind on a priority bill, up from one-in-ten (10 per cent) in September 2020.
The total owed to energy suppliers has more than tripled in real terms since 2018, to £5 billion, while Council Tax arrears in England have more than doubled since 2012-13 (up 117 per cent to £7.5 billion in 2026-26).
As the Government considers fresh cost of living support in the upcoming Budget, the authors warn that recent help was expensive and poorly targeted. The Energy Price Guarantee alone cost over £20 billion and was paid regardless of need. The country cannot afford to repeat that approach.
Instead, any new support should be targeted at the poorer families who have fared worst over the past five years – heating their homes less, taking on more debt, and falling behind on their bills more often – with energy bills the clear priority.
James Smith, Chief Economist at the Resolution Foundation, said:“Having experienced 13 years’ worth of inflation over the past five, families across the country are struggling with the cost of living. Unfortunately, help is needed just when the public finances leave less room than ever to provide it.
“While the hit to incomes from rising prices has been felt right across the board, the hardship has not been equally shared. It is poorer families who have cut back hardest on heating and are falling behind fastest on essential bills, and conflict in the Middle East is set to keep energy prices high.
“The Government can’t borrow its way out of this, and repeating the expensive blanket support of 2022 isn’t an option. Any new help must be squarely targeted at the poorer families facing the greatest hardship – starting with their energy bills.”
Alex Beer, Assistant Director of Strategy at the Nuffield Foundation said:“Five years of unusually high inflation have had a substantial impact on household finances, with lower-income families facing the greatest pressure.
“By showing how rising energy and food prices have reduced living standards and made it harder for people to pay essential bills, the report provides timely and valuable evidence on the consequences of an extended costs of living crisis.
“At a time when policymakers face difficult choices and public finances remain constrained, understanding who has been most affected and why is essential to designing effective policy responses.
“This work forms part of a wider programme of research funded by the Nuffield Foundation examining the consequences of the recent conflict involving the US, Iran, Israel and the wider region.”
