Existing Homes Alliance – The NEN

Scottish Budget: Delivering for families and public services?

The 2026-27 Budget will support a stronger NHS, with a record £22.5 billion for health and social care, expand cost of living support and invest in Scotland’s infrastructure.

Published alongside the latest multi-year Scottish Spending Review, Infrastructure Strategy and Infrastructure Delivery Pipeline, the draft Budget invests almost £68 billion including direct support for families and household budgets.

The 2026-27 Budget includes:

a cost of living package to: help families with funding to trial a programme of activities in a range of primary schools between 3-6pm; a Summer of Sport – free children’s sporting activities, including lessons on how to swim for every primary school child in the country; and a breakfast club for every primary school by August 2027
continued investment in Scotland’s existing cost of living measures, including free prescriptions, free eye examinations, removal of peak rail fares on Scotrail, free tuition fees for young Scots, free school meals for thousands of children, including all pupils in P1 to P5, and free bus travel for under-22s and over-60s
funding to increase Scottish Child Payment to £28.20 per week and investment to allow the introduction of a premium payment of £40 per week for eligible children under 12 months from 2027-28, bolstering efforts to drive down child poverty
extra funding to keep more children out of poverty from funds initially set aside to mitigate the UK Government’s two-child cap, including £50 million of whole family support and a further £49 million for measures to be announced in the Child Poverty Delivery Plan in March
tax choices which increase the Basic and Intermediate rate income tax thresholds to put more money in the pockets of low and middle income earners, maintain current income tax rates and bands, and provide a competitive non-domestic rates relief package worth an estimated £864 million, including measures for pubs, restaurants and retailers
a record £22.5 billion for health and social care, including a record £17.6 billion for NHS boards and resources to begin the national rollout of walk-in GP clinics, making it easier to access same-day appointments
an almost £15.7 billion record settlement for local government to support the services communities rely on including social care and education
significant extra funding for universities and colleges, with colleges seeing a combined increase of £70 million in resource and capital funding, equivalent to a 10% uplift, targeted support to help retrain workers in the oil and gas sector and ongoing commitment to Scotland’s apprenticeships, which this year will provide more than 31,000 Scots with a pathway to sustainable, well-paid jobs
over £5 billion to tackle the climate emergency, reduce carbon emissions and increase resilience as well as backing regenerative and sustainable skills in food and farming
£4.3 billion transport funding including investment in railways, the renewal of the ferry fleet, removal of peak season fares for residents of Orkney and Shetland on Northern Isles ferries and nearly £200 million for the dualling of the A9
record investment in new affordable homes

Ms Robison said:“This Budget delivers for families across the country, for a stronger NHS, and for a more prosperous future.

“It will fund landmark policies to continue efforts to eradicate child poverty – investing in a brighter future for Scotland and the children growing up here.

“Almost £68 billion is being invested in 2026-27 and almost £200 billion through the Scottish Spending Review and Infrastructure Investment Pipeline, demonstrating the scale of our ambition for our nation.”

Other measures include:

from April 2027, an Air Departure Tax (ADT) will come into force and the framework offered by the new ADT will be used to introduce a private jet supplement
the introduction by April 2028 of two new council tax bands for the most expensive properties in Scotland, those worth more than £1 million, on an up-to-date valuation
support for high-growth firms to attract private investment and connect entrepreneurs
£200 million for the Scottish National Investment Bank – delivering on the commitment to invest £1 billion in the Bank by the end of the parliamentary term
record funding for police and fire services and an additional £10 million investment in community justice services
a £20 million increase in the culture budget, recognising Scotland is richer because of its world-famous culture and creative sector
support for the creation of a diverse and sustainable supply chain for offshore wind, to boost the economy.

Scottish Budget 2026-27

Scottish Spending Review 2026

Infrastructure Strategy

REACTIONS:

Responding to today’s proposed Scottish Budget, Poverty Alliance Policy & Campaigns Manager Ruth Boyle said: “People in Scotland want a just and compassionate society – but too many feel the system is rigged against them.

“There was some good news today – but we can do much more to make sure that every child in Scotland gets the investment they need for a decent life and a better future.

“Ensuring that every child in primary school gets a healthy breakfast is an excellent investment, because no child should go to school hungry.

“Increasing the Scottish Child Payment to £40 for eligible households with a baby under 1 is welcome and will help families at a time when they face increased costs. However, this must be a first step towards boosting that payment to £40 for every eligible child in the country.

“That is the kind of fundamental investment the Government needs to make if they are serious about meeting the 2030 child poverty targets.

“With Scotland not on track to meet those legally binding targets, we need all political parties to set out their plans to invest in country where no child lives in poverty. Our children can’t wait any longer.

“We can make that kind of investment in Scotland – and there is support for it. In among the Budget documents is new polling from YouGov showing that 54% of people in Scotland believe that Government should redistribute income from the better-off to those who are less well off. Just 29% disagree.

“The Scottish Government must raise revenue to invest in our shared national priorities, like tackling child poverty and reducing the cost of living. It’s right that the Government has turned to those with the biggest assets to contribute more with a tax on private jets and increased council tax for the highest value homes.

“This has to be the start of long-promised, fundamental reform of council tax so that our local councils can provide the services that all of us need, and that are a vital lifeline for so many households in poverty.

“The Poverty Alliance will continue to call for the measures we need to provide a Minimum Income Guarantee that no-one will fall under – including increasing wages, investing in strong public services, and providing a social security system that gives everyone in Scotland a secure foundation to build a better future.

“Today’s budget has some positive steps towards that ambition – but we need to go further and faster if we are to build a Scotland free from poverty.”

Commenting on today’s draft Scottish Budget, Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity, said: “It’s hugely positive to see child poverty being made a top priority in today’s budget.

“The significant funding boost to whole family support and extra resources for third sector organisations will provide a lifeline to families who need help most, right across Scotland.

“But we can’t afford to slow down. Scotland’s legal target to eradicate child poverty demands bold, accelerated action. Life is tougher than ever for many children and families and at Children First we witness this first-hand every day.

“That’s why we urgently need a National Front Door that offers a simple accessible way for families to get the help they need when they need it.”

Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need.

Read the manifesto here: 2026 Holyrood Election Manifesto | Children First

Trussell’s Cara Hilton said: ‘While we welcome the @scotgov‘s £40 SCP rate for babies under 1, we continue to call for an increase to £40 a week for all.

‘Our @TrussellUK data shows food parcels for families with children aged 12-16 in Scotland rose by 7% over the past 5 years. #ScotBudget‘.

Responding to the Scottish Budget and Scottish Spending Review, Anna Fowlie, Scottish Council for Voluntary Organisations (SCVO) Chief Executive, said:   “Too often and for too long, voluntary organisations that provide vital services to people and communities across Scotland are treated as the poor relation to mainstream public services.

“They have had to contend with budget cuts, short-term funding cycles, late payments, incoherent decision-making, poor communication, inadequate grant management, and more.

“Reform of the voluntary sector funding landscape is long overdue. The Scottish Spending Review is welcome, giving the Government the long-term outlook to make progress on its commitment to deliver improvements, including multi-year funding for Scotland’s voluntary organisations.

“Welcome too is the Scottish Government’s commitment to multi-year funding for sections of the voluntary sector—this shows, again, what is possible.

“Today we had hoped for more than a recommitment to the ‘first step’ announced last February—the Scottish Government’s ‘Fairer Funding’ pilot.

“We know the benefits of multi-year funding: better staffing, stability, and future planning for the services people and communities rely on. The Government’s own research confirms this.

“Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs, funding that is flexible, sustainable, and accessible.

“We need to see real progress and recognition of SCVO’s Fair Funding asks beyond multi-year funding. Wider reforms are, unfortunately, now unlikely to be seen before the next parliamentary term.

“In the meantime it is essential that in the weeks following the Scottish Budget the Scottish Government support local authorities and voluntary organisations by meeting their commitments to timely notifications and payments.

“We look forward to further engagement on both Fair Funding and charity regulation in the next parliamentary term.” 

Shelter Scotland Director, Alison Watson said: “Social housing delivery in Scotland remains too slow, too little and too late for the more than 10,000 children homeless tonight. Today’s budget doesn’t do enough to change these facts.

“Shona Robison’s budget was an opportunity for Ministers to put their money where their mouth is. On the face of it an additional £34 million for social housing, compared to the most recent budget, is a step in the right direction – but it is not enough.

“The extra money will only deliver 36,000 affordable homes by 2030 – more than 26,000 short of where they say they would need to be to deliver their promise of 110,000 affordable homes by 2032.

“The new Parliament will need a new approach and new money to deliver the social homes needed to reduce homelessness. Homes that the government promised, that academics say we need but for which there is still no credible plan to deliver.

“We must be honest about the real costs of failure. Failing to build the social homes we need means rising homelessness, rising child poverty, rising costs for councils, health boards and the taxpayer.”

Responding to the Scottish Government’s Budget, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “It is disappointing to see nothing new in this Budget to adequately respond to the growing number of older people in poverty.

“One in six pensioners now live in poverty across Scotland, a total of 160,000 older people, and we must see more action to support them.

“We want the Scottish Government to set out a clear, targeted strategy to bring down the alarming number of older people in poverty, increase access to the vital Discretionary Housing Payments that can help older renters meet shortfalls in rent, and increase the social security support available to those on a low income in later life.

“With pensioner poverty at its highest level in nearly 20 years, and likely to continue to rise as our population ages, it’s vital all political parties include measures to bring down the levels of poverty in later life in their manifestos’ ahead of May’s Holyrood elections. In a compassionate and wealthy society, we should all be able to live a financially secure, dignified later life.”

Responding to the Scottish Government’s Budget statement which slashed the 40% discount on business rates bills for pubs at the same time as a rates revaluation will lead to higher bills from 1 April, Stuart McMahon, Director of pubgoers group CAMRA Scotland said: “Pubgoers and publicans simply won’t stand for a Budget which will force more of our locals to go to the wall by landing them with bills they simply can’t afford.

“I fear that slashing the 40% discount on business rates bills for pubs to just 15% at the same time as these bills are increasing will be absolutely disastrous.

“Transitional reliefs may sound good but if this Budget still means higher business rates bills than pubs are paying now then this will be the straw that breaks the camel’s back for many hard-pressed licensees.

“Pubs need permanently lower business rates bills so that they can survive, thrive and play their part as vital community hubs.”

The Scottish Government’s budget announcement of further funding for the college sector, which includes a combined increase of £70 million in resource and capital funding, received a qualified welcome. Principal of Edinburgh College, Audrey Cumberford said: “While this is a welcome step in the right direction for college funding, there is still more that needs to be done.

“This increase will help to undo some of the damage done by years of real terms cuts, but more is needed if we are to ensure the future sustainability of our sector.

“There is now a clear consensus across the political spectrum for better funding for colleges.

“I would urge parties to continue to work together to make sure we unleash the true potential of our sector so we can continue to drive economic growth and improve the lives of Scots across the country.”

Responding to the Scottish government’s 2026-27 budget, announced today by Finance Secretary Shona Robison, RCEM Vice President for Scotland Dr Fiona Hunter said: “Scottish Emergency Departments are in the midst of a crisis born of political apathy towards tackling the difficult problems of social care capacity, delayed discharges and the overall issue of hospital flow.

“Today’s budget indicates once again that the Scottish government understands what the issues are. £2.3bn extra for social care, an uplift in frontline NHS spending, specific targeted action on delayed discharge and local engagement – these are all measures we warmly welcome from the government.

“As well as this, our members will be pleased to hear about improvements to training, retention and working conditions.

“However, we’ve been here before. Time after time the reality in our A&Es has got worse, not better, despite claims from the government that the NHS has been on ‘the path to recovery’ in recent years.

“We are seeing more and more patients waiting alone on trolleys in hospital corridors for hours on end, getting sicker and being put at risk of harm.

“This has happened because exit block has not been tackled, despite promises to the contrary from the government.

“The devil will be in the detail and I will reserve judgement for when myself, and the members I represent, see improvements in our Emergency Departments.

“We look forward to continued engagement with the government on how it seeks to tackle hospital flow, and await further information on how the Health Secretary will take today’s promises and turn them into action and, ultimately, improvements for our patients.”

Jonathan Carr-West, Chief Executive, LGIU, said: “This Budget offers some short-term stability for councils, but it ducks the bigger questions about how local government is funded.

There is still no meaningful move towards multi-year settlements, which councils overwhelmingly say they need in order to plan sustainably. Our annual State of Local Government Finance in Scotland research, launched last week, reinforces this.

Incentivising a council tax freeze risks further undermining local fiscal autonomy, while adult social care remains the single biggest pressure on council finances without clear, dedicated funding.

Housing investment is welcome, but spreading it across the country without enabling local flexibility limits its capacity to tackle the areas of greatest need.

Overall, this is a Budget that manages immediate pressures but avoids the structural reform required to put local government finance on a sustainable footing.”

The Existing Homes Alliance (EHA) is a coalition of over 20 housing, environmental, fuel poverty, consumer and industry organisations calling for urgent action to transform Scotland’s existing housing stock.

Lori McElroy, Chair of the Existing Homes Alliance said: “While we welcome the ongoing support to help homeowners, landlords and tenants to make their homes warmer, healthier and more affordable to heat, this remains a drop in the ocean when we have over 800,000 households living in fuel poverty and 44% of Scotland’s homes falling below Energy Performance Certificate band C.

“Scotland has excellent fuel poverty and energy efficiency programmes such as Warmer Homes Scotland, Area-based Schemes and the Social Housing Net Zero Heat Fund, as well as generous grants through the Home Energy Scotland Grant and Loan Scheme, but the gap between what is needed and what is currently being delivered is wide.

“This Budget, as it stands, is a missed opportunity to significantly scale up these programmes which would reduce fuel poverty, improve public health by tackling damp and mould, and prepare the workforce and supply chains needed to deliver our climate change targets – supporting thousands of jobs and economic opportunities across Scotland.”

Joanne Smith, Policy and Public Affairs Manager for NSPCC Scotland, said: “For children to thrive, it’s vital that they have the best start in life, and so we are heartened by the Scottish Government’s commitment to increase the Child Payment for under ones. But we are disappointed that young families now will not reap those benefits, with it starting in more than a year’s time.

“We also welcome the Scottish Government’s renewed investment in the whole family support fund and its work to continue to deliver the Promise. But it is so important that in this it recognises the fundamental need for support for very young children, just like the Scottish Child Payment does, so that families get the help they need right from the start.”

Scotland’s Chief Constable Jo Farrell has responded to the Scottish Government’s tax and spending plans for 2026 to 2027.

Chief Constable Farrell said: “I recognise a £90m cash-terms uplift to revenue funding and an improved capital allocation for policing against a challenging public finance picture.

“I set out the funding requirements for policing in evidence during the Criminal Justice Committee’s pre-budget scrutiny work.

“Police Scotland will continue to engage with the Scottish Police Authority and the Scottish Government to understand the full implications of the budget and develop our planning for the year ahead.

“My focus continues to be on prioritising our frontline to deliver safer communities, less crime, and supported victims as part of our vision for policing.”

COSLA: Budget Reality

26-01-13 Budget Reality 26-27 FINAL Download

Tenement-focused charities urge immediate action on owners’ associations legislation following release of Law Commission report

Under One Roof and Built Environment Forum Scotland (BEFS) are calling on the Scottish Government to act quickly to enact legislation on compulsory owners’ associations, following the release of the Scottish Law Commission’s Report on Tenement law: compulsory owners’ association.

Under One Roof and BEFS have welcomed the report, commissioned by the Scottish Government, as a crucial step forwards in improving the condition of tenement buildings, which make up around 37% of all housing stock in Scotland and are in a significant state of disrepair.

Owners’ associations, which currently exist in some tenement buildings as voluntary bodies with no legal standing, are critical to ensuring flat owners have the communication, structures, and processes in place to organise repairs in common areas of their building, such as the stair and roof.

The report and draft legislation, proposed by the Law Commission, would in effect create an owners’ association in every tenement building, and place a duty on owners:

to appoint a manager for the association,
hold at least one annual meeting;
approve a repair budget,
ensure building information is provided to property registers.

The report also calls for the creation of a bespoke form on tenement incorporation, which would allow owners to sign repair contracts on behalf of the association, rather than placing liability on one or two owners, as currently exists.

Mike Heffron, Chief Executive of Under One Roof, said: “The condition of Scotland’s tenements is a ticking timebomb.

“This year, as is the case every year in Scotland, there are far too many examples of stonework crashing to the streets from crumbling tenements, or flat owners being displaced due to unstable buildings.

“The introduction of owners’ associations in every building is not a silver bullet for fixing Scotland’s tenement stock; it’s a starting gun. The legislation will make it easier for owners of tenement flats to begin overdue conversations, look closely at what needs to be done and how quickly, and start long overdue repair, maintenance, and retrofit works.

“Political parties and the Scottish Government must work quickly to ensure legislation making owners’ associations in every tenement becomes a reality, as well as move quickly to ensure buildings are inspected every five years, and every tenement in Scotland has a building reserve fund.”

Hazel Johnson, Director of BEFS, said: “Tenement maintenance is a pressing issue across Scotland.

“The connection between Net Zero goals and building condition is indisputable; regular maintenance, repair and wider focus on improving the fabric of homes including tenements, so they are more able to transition to clean heat, is crucial.

“Without this starting point, actions will not result in the energy reductions expected, failing to improve building performance, negatively impacting on occupant health, and failing to meet fuel poverty aims.

“It is within this context that we call for joined up action for tenements in Scotland. Well maintained tenements can deliver for Scotland’s housing needs, net zero, economy, wellbeing, and more – for many years to come. The establishment of owners’ associations is an important milestone on this journey.”

Gillian Campbell, Director of Existing Homes Alliance said: “The publication of this report and draft Bill is a significant milestone on the road to improving the condition of Scotland’s tenements and ensuring flat owners are not left behind in the transition to clean heating and energy efficient homes.

“The proposed legislation is part of a much-needed framework that will help flat owners to work together to maintain their homes, making them more energy efficient and moving towards clean heating.

“The introduction of owners associations for flats has support across the Scottish Parliament and the next Scottish Government now has an opportunity to take this forward, helping to ensure that all flat owners can benefit from living in warm, healthy, affordable to heat homes, with clean heating systems.”

Decarbonising heating in homes and buildings delayed

Housing Secretary awaits Westminster clarity

Housing Secretary Màiri McAllan has confirmed the Scottish Government will not introduce a Heat in Buildings Bill in the current session of the Scottish Parliament, following delays to the UK Government’s Warm Homes Plan and lack of clarity on cost of energy bills.

In a statement, Ms McAllan said she would not ask the Scottish Parliament to consider such an important Bill now with little time and without a full understanding of the UK policy context, due to several key policy levers being reserved and decisions delayed.

Ms McAllan reaffirmed the Scottish Government’s commitment to decarbonising buildings in Scotland by 2045 in a way that does not exacerbate fuel poverty, and announced additional grant support for homeowners of up to £7,500 (or up to £9,000 for households in island and remote rural areas) from December to incentivise connections to local heat networks.

The Housing Secretary also said the government intended to bring forward legislation as early as possible in the next parliamentary session, subject to the outcome of the 2026 election and clarity on the UK Government position.

A draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill has been published to give clarity to households and investors on future plans for legislation.

Màiri McAllan said: “Decarbonising how we heat our homes and buildings is a vital step in our efforts to tackle climate change. We must take action and in a way that does not worsen fuel poverty. The Scottish Government is fully committed to this by 2045, as set out in our draft Climate Change Plan.

“We have always been clear that our plans depend on essential clarity from the UK Government, but repeated delays to their Warm Homes Plan have left key questions unanswered – particularly on how they intend to make the switch to clean heat more affordable by reducing the cost of electricity.

“This is critical in ensuring decarbonising homes does not exacerbate fuel poverty at a time of spiralling energy bills.

“Ultimately, it is perverse that Scottish Ministers should be in the dark about plans related to Scotland’s own energy resources. If we had all the powers of a normal country – including over our own energy resources and market – we would not be in this position.

“In the meantime, we are determined to continue to press ahead with our existing decarbonisation agenda including developing heat networks as a significant investment proposition and viable heating source for households. Therefore, I am pleased to confirm the extension of grant funding for households to connect to local district heat networks, bringing it into line with grants available to install heat pumps.”

Since 2020, the Scottish Government has allocated £1.67 billion of funding through its Heat in Buildings schemes, including over £840 million for energy efficiency and clean heat projects.

Since 2020, the Scottish Government has supported an average of 15,000 households a year to decarbonise, including those in or at risk of fuel poverty and since the launch of Warmer Homes Scotland have helped over 47,000 households across Scotland to live in warmer homes that are more affordable to heat.

The draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill includes:

A heat decarbonisation target to replace direct emission heating systems in all Scottish buildings, as far as reasonably practicable, by 2045;
A regulation-making power to set a Minimum Energy Performance Standard for owner-occupied and non-domestic buildings that use direct emission heating systems; and
Provisions to encourage the development of heat networks, including a regulation-making power to require qualifying buildings within a heat network zone to connect to the heat network, or decarbonise their heating system

Grant support will be introduced for homeowners to enable connections to heat networks through the Home Energy Scotland Grant and Loan scheme.

Up to £7,500 of grant funding will now be available to homeowners, in addition to the optional £7,500 interest free loan. For those that qualify for island/remote rural uplift through the scheme, an additional £1,500 of grant funding will be available.

Gillian Campbell, Co-director at the Existing Homes Alliance, said: “This critical legislation has the potential to transform lives and communities across Scotland, cutting fuel poverty and climate emissions, whilst stimulating economic growth and job creation.

“But, creating good legislation requires proper scrutiny. As a result of repeated delays, we’re now at the stage where Parliament doesn’t have sufficient time to properly scrutinise and strengthen the Bill.

“This Bill, as currently drafted, will not drive the scale of activity needed to upgrade Scotland’s homes and meet climate change and fuel poverty targets.

“The next Scottish Government must act quickly to put the right legislation in place, and ensure time for good quality debate. In our manifesto for Holyrood 2026, we’re calling on the next Scottish Government to deliver a clear route map to warm, healthy homes by 2045. We need early sight of effective regulations, along with multi-year funding for fuel poverty and energy efficiency programmes.

“The next government must break down the barriers that prevent households, especially those in or at risk of fuel poverty, from accessing energy efficiency upgrades and clean heating. That means fully funding support for vulnerable households and providing fair financial incentives so that everyone can make the switch to clean heating with confidence

“It’s been over four years since the Heat in Buildings Strategy was published – it’s high time we started seeing action or Scotland is going to be left behind. It’s not too late – if the next Scottish Government moves swiftly to put the right building blocks in place, all of Scotland can benefit from a just transition to energy efficient homes and clean heating that leaves no-one behind and is affordable to all.”

Scottish Government ‘extremely unlikely’ to meet 2030 fuel poverty target’

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.

In the Scottish Fuel Poverty Advisory Panel’s response to the Scottish Government’s Tackling Fuel Poverty in Scotland: periodic report 2021-2024, the Panel argues that tackling fuel poverty has not been given the same strategic prioritisation at Holyrood as other major policy areas with statutory targets, such as child poverty and climate change.

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.”

The report can be viewed in full at Scottish Fuel Poverty Advisory Panel | SFPAP Periodic Report Response.

Civic alliance calls for end to cold homes ‘blighting’ Scotland

“Too many children across Scotland are growing up in cold homes, with fuel poverty affecting four in every ten households.” – Martin Crewe, Barnardo’s Scotland

An alliance of civic organisations has called on the Scottish Government to end the blight of Scotland’s draughty, unhealthy homes by 2025. The call has been welcomed by the Scottish Greens, who say the government must go ‘further and faster’ to address the issue.

The Existing Homes Alliance, whose membership includes the Church of Scotland and the Federation of Master Builders, says the Scottish Government must take a long-term approach to improving the energy efficiency of Scotland’s buildings.

By doing so many benefits will be realised, including helping to reduce fuel poverty, cutting household fuel bills, lowering climate change emissions, creating jobs and preventing ill-health.

The call follows a June announcement by the Scottish Government that it intends to make home energy efficiency a National Infrastructure Priority.

The Alliance groups are calling for the Scottish Government to set an ambitious goal for that project, by committing to a goal that by 2025 all homes in Scotland are at least an Energy Performance Certificate band ‘C’.

Alan Ferguson, Chair of the Existing Homes Alliance said: “It was great to see the Scottish Government’s commitment to make energy efficiency a National Infrastructure Priority. This is vital if we as a nation are to end fuel poverty blighting our homes and step up to the challenge of climate change. However, we now need to see concrete proposals and clear goals from the Scottish Government to make this happen. These should include a goal of helping all homes reach a C energy performance standard by 2025, and a commitment to major long-term funding to support investment in energy efficiency.”

Martin Crewe, Director of Barnardo’s Scotland said: “Too many children across Scotland are growing up in cold homes, with fuel poverty affecting four in every ten households. The comprehensive Marmot review showed that this more than doubles their chances of suffering respiratory conditions like asthma, as well as impacting adversely on mental health, educational attainment and emotional wellbeing.

“Supporting all homes to reach a C standard will improve the physical and emotional health of families across Scotland and help to improve the life chances of Scotland’s most vulnerable children.”

Grahame Smith, STUC General Secretary added: “Improving the energy efficiency of Scotland’s homes is a huge opportunity to build a stronger economy and a more just Scotland. Research shows that bringing all homes up to at least a C energy performance standard would create 8-9,000 jobs a year distributed across communities in Scotland, new training and skills development opportunities and offer an excellent return on investment in generating employment and economic growth compared to other infrastructure investments.”

Alison Johnstone MSP, Health and Wellbeing spokesperson for the Scottish Greens, welcomed the call from the alliance to radically improve the energy efficiency of Scotland’s housing.

She said: “This call is very welcome and shows the need for government to go further and faster to tackle the blight of Scotland’s draughty, unhealthy homes.

“Last year Scottish ministers agreed with me that energy efficient housing should become a national infrastructure priority. During discussions on the 2015-16 budget Scottish Greens pressed for action, resulting in an extra £20million for fuel poverty measures. This was welcome but still way below what is required. 40 per cent of Scottish households are in fuel poverty.

“At the Scottish Greens conference at the weekend we announced our intention to push for 6,500 apprenticeships to support the delivery of this national priority. The Existing Homes Alliance aim that by 2025 all homes are at least an Energy Performance Certificate band ‘C’ is ambitious but necessary if we’re serious about tackling fuel poverty, climate change emissions and preventing ill-health.”