Following concerns raised by the advocacy group Energy Action Scotland over the number of households with pre-payment meters who have not claimed their voucher entitlement from the UK Energy Bill Support Scheme that ended in March 2023, Scottish Labour MSP Sarah Boyack is urging people in Edinburgh to redeem their vouchers before they expire on 30th June 2023.
In Edinburgh, 34 per cent of vouchers have yet to be claimed, with the approximate value of the unclaimed support in Edinburgh being at around £1,374,120.
Households with non-smart (traditional) prepayment meter need to actively redeem the vouchers that have been sent by post, text or email.
Once the voucher from the energy supplier is received, people will need to take it to a Post Office or PayPoint shop to add it to the gas or electricity top-up key or card.
Commenting Sarah Boyack MSP said: “If you live in a household with older, non-digital pre-payment meters, you have been issued with vouchers by post, text or email to support you with the rising energy costs.
“These vouchers are valid for 90 days and expired or lost vouchers can be re-issued through the energy supplier.
“However, all vouchers expire on 30th June when the scheme ends.
“If you are entitled to energy vouchers, now is time to redeem them. They may not resolve the cost of living crisis, but during these hard time, we need all support we can get.”
The First Minister will convene an urgent summit with energy supply companies and consumer groups later this month, to discuss how advice and support for people struggling with energy bills can be improved.
The summit will consider what collective action can be taken by government, energy companies and the third sector to help businesses and consumers access advice, and get support with debt issues.
Scotland’s major energy suppliers including Scottish Power, OVO Energy, Centrica, Octopus and E.ON, as well as industry bodies and key consumer and poverty organisations will attend.
The summit follows last week’s meeting of the Scottish Government Resilience Committee on the cost living crisis and will take place ahead of OfGem’s next energy price cap announcement on 26 August.
First Minister Nicola Sturgeon said: “I know that this is an incredibly unsettling time for households and energy consumers across Scotland and the Scottish Government will continue to do everything we can to support those affected.
“There is a not a single solution to this problem and government, industry and the third sector in Scotland needs to work collaboratively together to ensure the right support is in place for householders and businesses during this challenging winter. This could include improving the availability of help and advice and considering a more compassionate approach to debt management.
“However, it remains the case that the powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government.
“Only the UK Government can access and make available resources on the scale required. They need to take action, now. As I said last week, a first step would be to cancel the energy price cap rise this autumn.”
Peter Kelly, Director, The Poverty Alliance said: “We are pleased that the First Minister will be convening this summit of energy companies, along with the Poverty Alliance and Energy Action Scotland.
“Across the country, people are increasingly being swept up amid a rising tide of hardship. But with the energy price cap due to increase in October, that tide threatens to become a flood.
“Households up and down Scotland are terrified of what the colder months will bring and the likelihood is that – without further action – lives and life chances will be at risk. The situation could scarcely be more urgent.
“But it is a situation we can do something about, by taking action to protect people most at risk of poverty and deeper hardship. It is that much-needed and urgent action that we are hoping the summit can bring about.”
Frazer Scott, CEO of Energy Action Scotland said: “With our colleagues at the Poverty Alliance, we welcome the First Minister’s intervention in gathering energy companies together to talk about how we can best support households struggling to afford spiralling energy bills.
“Fuel poverty will affect over one million Scottish households this winter requiring urgent intervention focussed on targeting those most in need.
“Cold, damp homes affect health and wellbeing and will put thousands of lives at risk as well as adding additional pressure to the NHS, making this a vital intervention for Scotland.”
The Scottish Government estimates that 906,000 or 36% of all households will be in fuel poverty in October 2022, based on an Ofgem price cap of £2,800 and taking into account previously announced government mitigations.
Basic energy efficiency measures have prevented up to 35,000 Scottish households from falling into fuel poverty over the past year, according to the Scottish government.
Statistics released today show that the installation of measures such as loft and cavity insulation, double glazing and new boilers have helped to reduce energy consumption, greenhouse gas emissions and cut household energy requirements.
In spite of efforts by the Scottish Government to help reduce household energy bills, tens of thousands of families were pushed into fuel poverty in 2011 as a direct result of energy company price rises. Between July and October 2011, more than 102,000 households fell into this category after energy prices increased by 14%.
Housing and Welfare Minister Margaret Burgess said: “Basic energy efficiency measures can make a huge difference to Scottish families who are struggling to make ends meet, allowing them to heat their homes more cost effectively.
“This government has allocated over £68 million in 2012-13 to energy efficiency and fuel poverty programmes to help individuals and families who are in most need of support. We also have in place a cashback voucher scheme offering up to £500 per household for energy efficiency measures such as double glazing and loft and cavity wall insulation, and from today, energy efficient boilers and appliances for private sector landlords.
“Rising energy bills are a huge concern for this government, and fuel poverty is an absolute scandal in an energy rich country like Scotland. The more that energy companies continue to implement punishing price increases, the more they are undoing the good work we are doing to tackle fuel poverty. That is why we are urging the UK government – who has responsibility in this area – to do more to help vulnerable people and ensure that our households are better protected.”
However the Scottish Greens believe the government should be doing a lot more to address the problem, and they are calling on ministers to stop hand-wringing on the worsening issue of fuel poverty. The Scottish Greens say the National Retrofit Programme to insulate homes – first proposed by the party in 2009 – needs to be increased from the current £65million a year to at least £100 million to make a real difference.
Green MSP for Lothian and Holyrood energy committee member Alison Johnstone said:
“Scottish Greens have long argued for extra money focused on rapid upgrading of peoples’ homes. For SNP ministers to suggest this issue is worsening despite their efforts hides the fact that they could do much more.
“With thousands more homes in fuel poverty, the Scottish Government must be more ambitious. Wringing hands about Westminster’s failure to tackle the Big Six energy companies isn’t good enough.”
The Scottish Government’s latest figures show that recent energy price rises have pushed an extra 26,000 households in Scotland into fuel poverty. Around 29 per cent of Scottish households now spend over 10 per cent of their income on energy bills, and 185,000 of those households spend over 20 per cent.
Commenting on the figures, Norman Kerr, Director of national fuel poverty charity Energy Action Scotland said: “The fact that more Scottish households are now in fuel poverty is very disappointing but not surprising, as energy prices have gone up and people’s budgets generally are under pressure. Efforts to make homes energy efficient, so that less energy is needed to heat them, are more vital than ever and will clearly have to be increased.
“Our advice to the public is to check out if they are on the best fuel tariff and payment method for their needs, to shop around energy suppliers, and to take up the free or discounted insulation from Scottish Government programmes such as Home Energy Scotland. There is a tendency to think it won’t make a difference, but it does all help at these difficult times.”
Energy Action Scotland is highlighting that the figures released today are for the period to autumn 2011. Using those figures and adding the effects of energy price rises announced in autumn this year, the numbers living in fuel poverty today are more likely to be around 900,000 household (40%). Today’s report states that those on the lowest incomes are hit hardest by the price rises.
