Financial support to help pensioners heat their homes this winter has started to roll out across the country. Pension Age Winter Heating Payment will provide support to at least 880,000 pensioners to help with heating bills.
The first payments have been processed and have started to land in accounts. Payments will continue to be made throughout the winter.
Eligible people of State Pension age will get a payment between £101.70 and £305.10 depending on their circumstances. Most people will receive their payment automatically – no action is needed.
Everyone who is eligible will receive a letter with details of their payment.
For pensioners with a taxable income of over £35,000, the payment will be taken back through the tax system during 2026/27.
Social Justice Secretary, Shirley-Anne Somerville said: “We know that energy costs are too high, and that this will affect households across Scotland this winter.
“Pension Age Winter Heating Payment will provide vital support for thousands of older people to help heat their homes and manage costs throughout the colder months.
“People over the age of 66 don’t need to do anything – in the vast majority of cases, the payment will be made automatically to help towards a warmer winter.”
Pension Age Winter Heating Payments have started and will continue throughout the winter.
The annual payment of between £101.70 and £305.10 helps people aged 66 or over with the costs of heating their homes.
The Scottish Fiscal Commission have forecast that around 1.055 million payments will be made in winter 2025-26, with the number of payments recovered estimated to be 169,000. Fiscal Update: August 2025
Pension Age Winter Heating Payment replaces Winter Fuel Payment in Scotland and will be delivered by Social Security Scotland.
Social Tariff can deliver “transformational impact” on fuel poverty levels
Housing Secretary Màiri McAllan has called for urgent action from the UK Government on energy bills, as new modelling finds that around 660,000 households could see estimated fuel bills cut by an average of £700 under Scottish Government proposals for targeted discounts.
New scenario modelling on a targeted unit rate discount and targeted removal of standing charges – or Social Tariff – published today by the Scottish Government, suggest it could lift 202,000 households in Scotland out of extreme fuel poverty and reduce the number of households in fuel poverty entirely by around 135,000, with a UK Government investment of £475 million per annum.
Today’s modelling builds on the work undertaken by the Social Tariff Working Group – comprising energy suppliers, consumer and fuel poverty groups and disabled people’s organisations.
Màiri McAllan said: “In an energy-rich nation like Scotland, no one should be struggling to pay their energy bills – yet far too many people are struggling with bills still higher than they were this time last year.
“The UK Government promised to cut people’s bills by £300 – instead bills have risen by almost £200. We must see action from the UK Government now.
“Today’s evidence shows that under our proposals for targeted discounts, around 660,000 households in Scotland would see their estimated fuel bills go down by an average of £700 – with more than around 135,000 households lifted out of fuel poverty and more than 200,000 lifted out of extreme fuel poverty.
“We have worked closely with energy providers, consumer groups and others to develop these concrete, deliverable plans which would have a transformational impact on people in Scotland during the cost of living crisis.
“The UK Government is not going to reduce fuel poverty without investment – but set against the impact of fuel poverty, which research suggests costs the NHS across in England alone £1.4 billion per year, this investment is not just the right thing to do, but is a smart, preventative spend.
“High energy bills are causing misery for people throughout Scotland and I am calling for the UK Government to use the powers at their disposal and take action to support people now.
“UK ministers have been quick to tell us what they will not do to cut energy bills and reduce fuel poverty – they must now tell us what they will do.”
Frazer Scott, Chief Executive Officer, Energy Action Scotland said: “It is abundantly clear from the report published by the Scottish Government that the introduction of a social tariff or social discount would have a transformational impact on low-income fuel poor households and people with serious health conditions or disabilities.
“The current approach of a wholly inadequate payment £150 through the Warm Home Discount provided through energy suppliers is simply no longer fit for purpose.
“Energy Action Scotland urges the UK Government to introduce a social tariff or social discount of the type modelled in this report and provide meaningful support for households unable to heat and power their homes.”
David Hilferty, Director of Impact, Citizens Advice Scotland said: “Energy is one of our fastest growing advice areas across the CAB network – up 150% compared to the period before the pandemic and the twin cost of living and energy crises.A social tariff for energy is no longer a nice-to-have – it is now an essential and imperative need.”
Based on Scottish Household Condition Survey data, eligible households would receive on average a £1,000 reduction on their modelled fuel bill.
As this estimate is based on modelled fuel bills to meet the heating regimes set out in the Fuel Poverty definition in Scotland, we have also provided a calibrated cost based on DESNZ average domestic consumption data.
For the calibrated cost, the average fuel bill reduction per household is £700 and would require a UK Government investment of around £475 million per annum.
More support for services to help people struggling with energy bill debt
Services that support people struggling with debt on their energy bills have been expanded after receiving almost £1 million of additional funding.
This will help organisations to provide money and debt advice to customers, increase capacity through additional training for staff, and enhance engagement with energy suppliers to facilitate fairer and more sustainable debt solutions for customers.
£944,000 has been allocated equally between Citizens Advice Scotland, StepChange Debt Charity and Advice Direct Scotland.
Housing Secretary Màiri McAllan announced the investment at the beginning of Talk Money Week, an annual campaign from the Money and Pensions Service to increase awareness of personal finance issues.
Ms McAllan said: “In an energy rich country like Scotland, nobody should be struggling to pay their energy bills.
“The UK Government said energy bills were going to come down, but they’ve only gone up and could rise further still.
“That underlines the importance of our investment in services that support those who are struggling the most.
“Advice agencies like Citizens Advice Scotland, Stepchange and Advice Direct Scotland, play a vital role delivering this support and we will continue to work closely with them to ease the burden of the cost of living and help those who need it.”
The funding is part of a £16.9 million package being invested in free income maximisation and debt advice.
Sharon Bell, Head of StepChange Debt Charity Scotland, commented: “Scotland is facing an energy debt crisis and more and more clients are coming to StepChange Debt Charity Scotland with spiralling energy arrears.
“We welcome this additional funding from the Scottish Government which is allowing us to provide vital energy debt advice to more people across Scotland right when it is needed the most.”
As the colder months approach, Aldi is reminding shoppers in Edinburgh of the most essential items to donate to foodbanks via its in-store donation points.
A list of priority items has been created based on the demands of foodbanks, charities and community groups across the UK and includes everything from tinned food to cereals and cleaning products.
According to community giving platform Neighbourly, who works with Aldi stores to redistribute customer food donations to good causes, the demand for foodbanks can increase by nearly 30% over the colder months.
Luke Emery, National Sustainability Director at Aldi UK, said: “We know autumn and winter are busy periods for foodbanks and organisations like Neighbourly who support those in need across the UK.
“We’re so grateful to all customers that have used our in-store donation points so far this year, and we hope this list of items will make it easy for shoppers to pick those that are most needed over the colder months.”
Steve Butterworth, CEO of Neighbourly, added: “With many foodbanks and local charities facing increased demand in the months ahead, any extra support we can get will be vital.
“By highlighting the most needed items, we hope to make it easier for Aldi shoppers to support their local communities.”
GOVERNMENT MUST TAKE ACTION OR MISS FUEL POVERTY TARGETS
Scotland is extremely unlikely to meet its fuel poverty targets for 2030 according to a new report from the Scottish Fuel Poverty Advisory Panel.
The Panel says the Scottish Government’s first three-year update, Tackling Scottish Fuel Poverty 2021–24, shows that fuel poverty rates have risen sharply since targets were first set in 2019.
It says that greater emphasis must be placed on the monitoring and evaluation of progress towards fuel poverty targets.
The latest figures paint a stark picture: more than a third of households in Scotland (34%), approximately 861,000, are now classed as living in fuel poverty.
A household is in fuel poverty if, after housing costs have been paid for, it needs more than 10% of its remaining income to pay for its energy needs and if after paying for its energy the household is left in poverty.
It’s considered in extreme fuel poverty if they have to spend more than 20% of its remaining income. Almost one in five (19.4%) or 491,0001 households are in extreme fuel poverty, a long way from the Scottish Government’s goal of reducing the figures to 15% for fuel poverty and 5% for extreme fuel poverty by 2030.
Matthew Cole, Chair of Scottish Fuel Poverty Advisory Panel said: “We’re calling for the existing Fuel Poverty Strategy to be revised as a matter of urgency, or Scotland will not only miss its 2030 targets but is also unlikely to meet its 2035 targets.
“There is also need for a fuel poverty delivery plan that links boosting household income directly to meeting fuel poverty targets, and this delivery plan should be robustly monitored.
“While meeting the 2040 target of just 5% in fuel poverty and 1% in extreme fuel poverty is still possible, it will be a massive challenge requiring a whole new strategic approach. There are far too many people still having to choose between heating their homes and feeding their families.”
He said the Panel has heard some harrowing stories from energy advice agencies and other partners on the frontline across Scotland: “We have heard of people resorting to extremes so that they can access heat and power, with a resident in the Western Isles developing hypothermia after disconnecting the heating because they were unable to pay their bill.
“We have even heard reports of someone ripping up the floorboards in their home so that they could burn them as a heat source. These findings are shocking on their own, but are even more so when we consider the longer-term impacts living in fuel poverty can have, including on physical and mental health.”
The Panel’s new report acknowledges that the world is a very different place since the original targets were set in 2019, before the COVID-19 pandemic and cost of living crisis driven by the war in Ukraine and sanctions against Russia.
It also acknowledges that although household energy rates are not within the Scottish Government’s direct control, the escalation of fuel poverty levels in Scotland means that tackling fuel poverty should be a greater priority than ever.
The report recognises that some progress has been made by the Scottish Government over the last three years, particularly in efforts to improve the energy efficiency of housing. There has been a measurable improvement in recent years with 56% of homes rated EPC band C or better in 2023 – an increase of around 3% from 2022.
There has also been significant Scottish Government support to increase income for low-income households, with some interventions directly related to annual assistance with energy costs.
However, there is still a long way to go to achieve the targets. The Panel has made a series of recommendations to the Scottish Government urging it to:
Fulfil its commitment to revising its current Fuel Poverty Strategy by December 2026.
Accelerate the rate of improvements to make housing stock more energy efficient.
Increase awareness of how energy is used in homes to reduce waste and make costs clearer, as many households may be on unsuitable tariffs, paying more than necessary without realising it.
Set a clear vision for the GB energy market, push for reforms that take account of the needs of Scottish consumers, and protect those at risk of fuel poverty.
Target island and remote rural communities with tailored, co-ordinated action to cut fuel poverty where it hits hardest.
On behalf of the Panel, the Chair emphasised: “It is essential that the revised strategy includes a clear, credible plan to cut fuel poverty and meet statutory targets.
“That means closer monitoring, better evaluation, and flexible policies that respond quickly to stalled progress or heightened need. We look forward to seeing the Scottish Government’s response in the coming weeks.”
Gillian Campbell, Director of the Existing Homes Alliance (EHA), said: “The Scottish Fuel Poverty Advisory Panel highlights that the number of households in fuel poverty rose from 24.6% in 2019 to 34% in 2023. This rising level of fuel poverty in renewables rich Scotland is deeply concerning.
“Poor energy efficiency remains one of the main drivers of fuel poverty, yet we know Scotland already has excellent fuel poverty and energy efficiency programmes that can make homes warmer, healthier and cheaper to heat. However, the scale of existing programmes doesn’t match current levels of need.
“The Scottish Government must commit to scaling up these effective schemes and providing long-term funding certainty so local authorities and partners can maximise their impact. Without that commitment, too many people will continue to face the impossible choice between heating and eating this winter.”
CRANNIE COMMUNITY HUB: FRIDAY 26 SEPTEMBER 10.30am – 1.30pm
Crannie Community Hub (9 Cranston Street, EH8 8BE) is hosting a Cost of Living Support Event this) Friday (26th September) from 10:30am -1:30pm.
It is a collaboration between the office of Angus Robertson MSP and the community hub. There will be multiple organisations with stalls offering face-to-face advice and support + tea and coffee.
National charity deafPLUS has launched an initiative to tackle fuel poverty in the Deaf community in partnership with energy network SGN.
energyPLUS will deliver tailored, accessible services in British Sign Language (BSL) and provide resources to help Deaf households stay safe, warm and informed.
Rising energy costs and a shortage of accessible support means Deaf households are at greater risk of unsafe or unaffordable living conditions. deafPLUS’s survey found 64% of BSL users in south east England have difficulty accessing qualified interpreters for essential services.
Without tailored help, too many Deaf people are left behind.
The partnership will support Deaf communities across SGN’s Scotland and southern networks and aims to:
· Deliver one-to-one personalised energy safeguarding advice via deafPLUS’s BSL Adviceline, video calls, and face-to-face sessions in community hubs.
· Distribute accessible carbon monoxide (CO) alarms with strobe lights and vibrating pads to households most at risk.
· Provide Deaf awareness training for SGN customer-facing teams.
· Support vulnerable households to sign up for the Priority Services Register.
· Refer households for home energy assessments and income maximisation services.
· Reach 20,000 people through a social media campaign on energy safety, CO awareness, and efficiency.
Running until March 2026, direct support will be provided to 1,250 vulnerable households, helping them to reduce fuel poverty and energy debt, improve energy efficiency and protect themselves from the risks of CO.
Funded by SGN, they’ll also have access to trusted financial and wellbeing support, gaining confidence to manage their energy needs.
Deaf communities across SGN’s Southern network will be supported including those in Berkshire, Dorset, East Sussex, Hampshire and the Isle of Wight, Kent, London, Oxfordshire, Surrey, West Sussex, and Wiltshire, as well as their network in Scotland.
Reg Cobb, Chief Executive Officer at deafPLUS, said: “No Deaf person should be left behind when it comes to energy safety and affordability.
“This partnership will breakdown barriers that have excluded Deaf people from essential energy advice and safety information. Together with SGN, we can ensure Deaf households are supported to stay safe, warm, and informed.”
Janet Duggan, Community Partnership Manager at SGN, said: “Working with quality trusted partners like deafPLUS ensures we can reach communities who need our help the most.
“We’re proud to support the delivery of accessible, life-changing energy advice and safety resources for Deaf people.
“Working with deafPLUS means we can deliver life-changing energy advice and resources to communities who need them most.”
Budget to address economy that’s “not working well enough for working people”
The Chancellor has confirmed that the date of the Budget will be Wednesday 26 November.
In a video message posted yesterday, the Chancellor of the Exchequer, Rachel Reeves said: “Britain’s economy isn’t broken. But I know it’s not working well enough for working people.
“Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change. We’ve got huge potential – world-leading brands, dynamic industries, brilliant universities, and a skilled workforce. We’re a global hub for trade.
“Fixing the foundations has been my mission this past year.
“We raised the minimum wage for three million people.
“Cut NHS waiting lists.
“Started tearing up planning rules to build 1.5 million new homes.
“Promised billions more for the country’s infrastructure.
“Secured trade deals with the US, India, and the EU.
“And changed Treasury rules so investment reaches every part of the country.
“But I’m not satisfied. There’s more to do.
“Cost of living pressures are still real. And we must bring inflation and borrowing costs down by keeping a tight grip on day to day spending through our non-negotiable fiscal rules.
“It’s only by doing this can we afford to do the things we want to do. If renewal is our mission and growth is our challenge. Investment and reform are our tools.
“The tools to building an economy that works for you – and rewards you. More pounds in your pocket. An NHS there when you need it. Opportunity for all.
“Those are my priorities. The priorities of the British people. And it is what I am determined to deliver.“
Finance Secretary @shonarobison has responded to the UK Government announcing the UK Budget will take place on 26 November.
She said the date presents challenges for @scotgov to bring forward its Budget before the end of the year.
Edinburgh residents accessing charity services averaged 27% in 2024, new data analysis reveals
An average of 27% of Edinburgh residents relied on a charity for essential support in 2024, from mental health care and debt advice to medical support, according to new data analysis by Ansvar Insurance. The figure was higher in some areas – up to 30%.
The analysis, based on the Charities Aid Foundation’s (CAF) Local Giving Report 2025 and interactive data map, emphasises the reliance on charities for essential needs-based services].
But despite the demand, fewer people are giving. CAF’s National Giving Report 2025 reveals the proportion of people donating has fallen to only 50%, a historic low since data collection began in 2016. Of those who gave, the majority supported national rather than local causes.
Adam Tier, Head of Underwriting at Ansvar, an expert insurer for the charity and not-for-profit sectors, commented: “The data illustrates how vital charity organisations are in Edinburgh communities, often addressing gaps left by statutory services, and doing so under financial and operational pressure.”
Additionally, there is a mismatch between where support is needed and where money goes, with some Edinburgh areas seeing 23% of residents relying on charity services and others as high as 30%.
Adam Tier added: “Our experience of working closely with charities has shown just how essential their services are for many individuals and families.
The challenge, and opportunity, for donors and policymakers is to help balance the disparity by directing more resources from affluent communities to those facing the highest levels of need.”
He concluded: “Policymakers should be urged to ease the flow of funding from wealthier areas to those with greater needs.
“Charities must also be supported to build more sustainable and risk-resilient models that can withstand rising demand and operational challenges.
“And for donors, particularly those in wealthier regions, consider a shift in giving towards local and community charities in under-resourced areas, where support can make a big difference.”
Changes to the maximum amount energy suppliers can charge people on default tariffs for each unit of energy and the daily standing charge
Every 3 months Ofgem review and set a level for how much an energy supplier can charge for each unit of energy and daily standing charge, under the price cap.
From 1 October to 31 December 2025 the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go up by 2% to £1,755 per year. However, compared to the start of 2023, this is £625 (26.3%) lower than when the energy crisis was at its peak.
For a typical household, their energy bills will increase by £2.93 a month or £35.14 per year. This is 2.2% per year higher than the price cap set for the same period last year, from 1 October to 31 December 2024 (£1,717). But when adjusted for inflation, it is 0.9% lower than the same period in 2024. Based on the current inflation rate, a typical household will pay £102 from October to December instead of £100 per month.
Costs included in the energy price cap
The level of the energy price cap is made up of different costs, for example the wholesale cost of gas and electricity, costs to supply energy on the network and VAT. These costs are split within the energy price cap between the unit rate and the standing charge.
Energy price cap rates 1 October to 31 December 2025
Electricity rates
If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 26.35 pence per kilowatt hour (kWh). The daily standing charge is 53.68 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.
Gas rates
If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 6.29 pence per kilowatt hour (kWh). The daily standing charge is 34.03 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.
Why energy prices have gone up
There have been increases to parts of the costs of transporting energy in Great Britain (England, Scotland and Wales). Network operators are adjusting costs based on the level set by the National Electricity System Operator so that electricity supply is secure.
Other costs that go towards government schemes and essential support are also a factor for this increase.
Managing your energy bills and tariff
You are covered by the energy price cap if you are on a default tariff and pay for your electricity and gas by either:
standard credit (payment made when you get your electricity and gas bill)
Direct Debit
prepayment meter
Economy 7 (E7) meter
The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have.
You could pay less for your energy by changing your energy tariff or payment type. Find out if you can change or fix your tariff and how to switch energy supplier.
Tell your energy supplier if you cannot pay your bills. They must help you if you ask. They could set up a repayment plan or provide you with emergency credit.
We are reviewing how we allocate costs, and the impact of investments and upgrading infrastructure on customers’ bills. This will help make sure that the costs recovered are fair to consumers and efficient.
Next energy price cap review
We review and set a level on how much an energy supplier can charge for each unit of energy including the standing charge every 3 months. The levels for the period 1 January 2026 to 31 March 2026 will be published by 25 November 2025.
