Fuel Insecurity Fund: support for those who need it most

Delivering even more tailored support to tens of thousands of households is at the heart of a major expansion of this year’s Fuel Insecurity Fund.

The First Minister announced in March that the Fund will be tripled to £30 million this year. Details have now been announced of how the additional funding will be used to help those who need it most through new and existing services.

This includes £5 million for one-to-one mentoring for households to be provided by a new funding partner, The Wise Group, as part of a longer-term approach to tackling poverty and its causes.

Households will also be helped through additional funding being directed to existing delivery partners, including:

  • £9 million to enable Advice Direct Scotland to administer Home Heating Support Fund grants to those struggling with the rapid increase in gas, electricity and oil prices
  • £8.5 million for the Fuel Bank Foundation to rapidly support more than 85,000 households, including those with prepayment meters and at risk of imminent disconnection
  • £7.25 million to enable the Scottish Federation of Housing Associations to provide more than 55,000 households across Scotland with advice, support with bills and energy- saving items

Details of the additional support were announced ahead of an anti-poverty summit being convened by the First Minister tomorrow (Wednesday). Those with direct experience of poverty, as well as experts from the public, private and third sectors, will take part.

Energy Minister Gillian Martin visited Advice Direct Scotland’s Glasgow headquarters to meet advisers and learn more about how they are supporting people who are struggling to heat their homes.

She said: “The Fuel Insecurity Fund has been and continues to be a direct lifeline for many thousands of households, which is why the First Minister acted swiftly and decisively to triple the Fund to £30 million this year. We want to support even more people facing unprecedented rises in the cost of energy.

“Whilst the key energy policy levers remain with the UK Government, one of our interdependent missions as a government is to tackle poverty and protect people from the impact of the current cost of living crisis, which is why we have taken this action.

“The UK Government has continually failed to take the necessary steps to support people now and make the necessary changes – which only it can take – to ensure households and businesses never experience an energy crisis like this again.

“This includes reversing its decision to end the Energy Bills Support Scheme and making essential reforms to the energy market so the link between the price of electricity and the cost of gas is permanently broken.”

Conor Forbes, Director of Business Development and Policy at Advice Direct Scotland, said: “We are delighted to be working with the Scottish Government again to support Scottish citizens struggling with the cost-of-living and energy bills.

“With the UK Government’s Energy Bills Support Scheme coming to an end, many are finding themselves having to cut back on energy to afford other things. It’s important that anyone who is struggling reaches out for support.

“Advice Direct Scotland runs a number of services that can offer assistance in various areas related to the cost-of-living, including energy, debt, and support with benefits applications.”

Sean Duffy, Chief Executive Officer at The Wise Group, said: “It’s great to see the Scottish Government taking action to help households struggling with fuel insecurity and poverty.

“We’re proud to be a new funding partner for the Fuel Insecurity Fund, and excited about the opportunity to provide tailored, one-to-one Relational Mentoring to households in need.

“We know that everyone’s situation is different, so we’re committed to taking a personalised approach to support each household in a way that supports sustainable change. We’ve had great success stories, and we’re looking forward to making a real difference to people’s lives through this initiative.”

More information on the Fuel Insecurity Fund

£20 million referendum funding will support people struggling with their energy bills

Fuel Insecurity Fund extended to help fuel poor households

Thousands of vulnerable households will be supported by the continuation of the Scottish Government’s uprated £20 million Fuel Insecurity Fund.

Announced as part of last week’s Scottish Budget 2023-24, the investment will enable third sector partners to continue to provide support to households who are at risk of self-disconnection or self-rationing their energy use.

While the Scottish Government remains committed to engaging with the UK Government to deliver a referendum on Scottish Independence, funding that was originally earmarked for a referendum in 2023 will now be used to help tackle fuel poverty.

Last week’s Scottish Budget included additional steps to address inequality while tackling the climate emergency including increased investment of over £366 million next year to support the delivery of the Heat in Buildings Strategy. It forms part of a package of measures introduced by the Scottish Government to protect the most vulnerable households from the impact of the current cost of living crisis.

The decisions taken through the Emergency Budget Review in November enabled the Scottish Government to provide additional immediate support to people most impacted by the cost of living crisis, specifically rising energy prices, by doubling the Fuel Insecurity Fund to £20 million this year. The Scottish Budget is now protecting that investment into 2023-24.

First Minister Nicola Sturgeon and Minister for Zero Carbon Buildings Patrick Harvie met with people on the frontline of tackling fuel poverty, while visiting the Wise Group in Glasgow, a social enterprise working to lift people out of poverty by providing mentoring support to help with employment and life skills and offering energy advice.

First Minister Nicola Sturgeon said: “People across our country are paying a steep price for the economic mismanagement of the UK Government, with the cost of living forcing many to choose between heating their home or eating – the Fuel Insecurity Fund aims to stop that happening.

“The Scottish Government has, and always will, use its currently limited powers to the maximum extent in order to meet the challenges being faced by the people of Scotland right now. Powers relating to energy markets are reserved to the UK Government, so I am renewing my call for further and more urgent action, to support the most vulnerable households.

“With this intervention – as with many others the Scottish Government has set out – we are having to divert funding into policies that aim to minimise the impact on people as a direct result of UK Government policy.

“The full powers of independence would enable us to make different choices and help people facing the devastating consequences of the cost of living crisis.”

Minister for Zero Carbon Buildings and Tenants’ Rights Patrick Harvie said: “Everyone needs a safe, warm and affordable place to call home and yet despite this we know that many people are struggling under the weight of their energy bills and wider cost of living pressures.

“Last week, the Scottish Budget confirmed £366m for insulating homes and buildings and tackling fuel poverty as part of our £1.8 billion commitment to Heat in Buildings over this Parliament.

“That is essential work to make sure that Scotland has warmer homes which are cheaper to heat for decades ahead.  We also need the full range of powers on matters like energy pricing, consumer protection and energy supply to make the biggest possible difference.

“But right now, the Fuel Insecurity Fund is a lifeline to many people struggling most with fuel poverty which is why we have made the commitment for next year.”