CHANGEWORKS SESSION – MONDAY 16 DECEMBER 11am – 12pm
Come along to the free energy advice event with Changeworks at the Heart of Newhaven on Monday 16th December from 11.00 -12.00
Managing your heating and electricity can feel overwhelming.
Whether it’s understanding your bill, managing any debt, or accessing funding you’re entitled to – Changeworks can give you free and impartial advice and support to feel confident about your bills.
The Scottish Government will provide universal support through the introduction of Pension Age Winter Heating Payments next year ensuring a payment for every pensioner household in winter 2025-26.
Social Justice Secretary Shirley-Anne Somerville has confirmed that on the roll-out of the new benefit next winter, pensioners in receipt of a relevant qualifying benefit, such as Pension Credit will be receiving Pension Age Winter Heating Payments of £300 or £200, depending on their age. Meanwhile all other pensioner households will receive £100 from next winter, providing them with support not available anywhere else in the UK.
Ms Somerville also announced a £41 million package of support for people struggling with energy costs this winter. These measures include an additional £20 million which will be provided for the Scottish Welfare Fund, to enable councils to provide more vital support to people in crisis this winter.
An additional £20 million will be invested into the Warmer Homes Scotland Scheme, the national fuel poverty scheme which helps people install energy efficiency measures and more efficient heating systems, saving on average around £300 per year in household energy bills.
Meanwhile grant-funding of £1 million will be made available to registered social landlords and third sector partners to fund work to help sustain tenancies and prevent homelessness. This is in response to calls from a coalition of housing and anti-poverty organisations for a shift in spending from crisis intervention to prevention.
Ms Somerville said: “The measures I have announced today will go some way to allay the fears of pensioners in Scotland ahead of next winter, but the Scottish Government recognises that more must be done.
“Ahead of next winter I will bring forward regulations to introduce universal Pension Age Winter Heating Payments in winter 2025-26 for Scottish pensioners.
“This universal benefit – providing much needed support not available anywhere else in the UK – will deliver support for all pensioner households as we had always intended to do before the UK Government decision to means-test Winter Fuel Payments cut the funding available to support our new benefit in Scotland this winter by £147 million.
“We will not abandon older people this winter or any winter. We will do our best to make sure no-one has to make a decision between heating and eating, and we will continue to protect pensioners”.
Reacting to yesterday’s announcement by the Scottish Government, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “The reintroduction of winter heating support for all pensioners in Scotland from next winter is welcome and will offer some comfort to the 900,000 pensioners who were set to completely lose the previous Winter Fuel Payment.
“Since the decision to restrict the Winter Fuel Payment to only older people on Pension Credit, we’ve seen a surge in the number of older people getting in touch with Independent Age who are worried about heating their homes, and making ends meet, through the winter. Many have told us they are heating only one room, staying in bed all day with a blanket, and cutting back on food to avoid the energy costs associated with cooking.
“With energy prices set to rise again in January, and a staggering 330,000 older households living in fuel poverty in Scotland, it is clear that changing the eligibility of the payment in this way was the wrong decision. It is positive that this has been recognised in Scotland, with the Scottish Government making a payment available to all older people next year, and we hope the UK Government will also reconsider their decision.
“In a compassionate and socially just society, no one should face fuel poverty. We are pleased the Scottish Government has listened to older people, and taken this action today. However, we remain concerned about older people who face this winter without this much needed financial support.
“Going forward, the Scottish Government should continue to monitor the situation and be open to taking further action in future.”
A spokesperson for AGE SCOTLAND said: “Bringing back an energy support payment for all pensioners is very good news and will be a huge relief. It shows the power of this campaign and the relentless efforts from all quarters.
“The decision to remove the universal winter fuel payment by the UK Government, and its impact on pensioners this winter is nothing short of disastrous.
“Over the last few months we have been urging the Scottish Government to bring this back and we are delighted that they have listened to the strong arguments and have taken action.
“It also demonstrates the power of devolution and what Scotland can do when we put our minds to it.”
Energy regulator Ofgem has today (Friday 22 November) announced a 1.2% increase of the energy price cap for the period covering January-March 2025.
The change to the price cap – which sets a maximum rate per unit and standing charge that can be billed to customers for their energy use – will rise by £21 for an average household per year or around £1.75 a month.
For an average household paying by Direct Debit for dual fuel this equates to £1,738 per year. This is 10% (£190) cheaper compared to January-March 2024 (£1,928) and 57.2% (£2,321) less than the energy crisis (January-March 2023).
It comes as analysis by Ofgem shows around 1.5million households switched tariff over the past three months. The regulator is urging customers to take advantage of the rising choice in the market and look for the best deal to help keep their household bills down. By switching, savings of up to £140 are currently available.
Following a call by Ofgem in August for suppliers to offer more choice with low and no-standing charge tariffs, there has been an increase in the number of suppliers offering these kinds of deals. There are currently 8 available that are at least 10% below the level set in the price cap.
However, while these come with a lower standing charge, they do have a higher unit rate. They could benefit customers with lower energy usage but will not work for everyone so consumers should carefully consider what works for them.
Tim Jarvis, director general of markets at Ofgem, said: “While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too many households.
“However, with more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options.
“Our reliance on volatile international markets – which are affected by factors such as events in Russia and the Middle East – means the cost of energy will continue to fluctuate. So it’s more important than ever to stay focused on building a renewable, home-grown energy system to bring costs down and give households stability.
“In the short term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them.”
The regulator is encouraging customers to consider the way they pay their bills. Around 5 million customers pay by standard credit payments – which means paying for energy after it has been used. But this is much more expensive, particularly over the winter months.
Customers could save £100 by simply switching from standard credit payments to Direct Debit payments or smart PPM, which remains the cheapest way to pay for energy.
The cheapest deal on the market could save a typical dual fuel customer £210 compared to the upcoming price cap level. However, this requires signing up for an additional boiler cover service.
There are other cheaper fixed deals on the market which don’t require additional services that could save customers more than £140 per year compared to the upcoming cap level.
If consumers are worried about paying their bills, they can contact their supplier for support. Ofgem’s rules mean they must work with their customers to agree an affordable payment plan. They may also be able to help by offering more time to pay, access to hardship funds and advice on how to use less energy.
Age Scotland’s Policy Director, Adam Stachura, said: “This latest increase to the energy price cap is yet another blow for older people facing the coldest months without the safety net of the Winter Fuel Payment.
“At a time when many are already feeling under pressure, news that bills are set to rise further still will put those already struggling in an extremely difficult position. They will be very disappointed that there is no end in sight, and no support measures identified for those not claiming or not eligible for Pension Credit.
“Pensioners in Scotland are the most starkly affected by fuel poverty, so government must deliver much more to support them or the numbers in this grim position will spiral further. This another compelling reason for the Scottish Government to bring back the universal entitlement to the Winter Age Pension Heating Payment next winter.
“With Scotland already recording the coldest temperatures in the UK, we are seriously concerned about older people’s health being jeopardised if they are unable to heat their homes.”
Consumer Scotland Head of Energy Kate Morrison said: “Although lower than at the peak of the energy crisis, energy bills are still historically high and will rise further in January.
“One of the legacies of the past two years of high bills has been a growth of energy debt and arrears in the GB domestic market which now exceeds £3.6bn – a record high – and bill increases will impact further on levels of debt
“This will be a challenging winter for consumers, particularly those with higher energy needs including disabled people and those with health conditions.
“There is a need for governments to design and deliver better targeted energy affordability support for consumers, particularly given current levels of debt and ongoing pressure on household budgets.”
FREE POP-UP DROP-IN EVENTS AT WESTER HAILES POST OFFICE
More than 30 per cent of Scots struggling with their energy bills have never asked for help, new research has revealed.
A new poll, commissioned by British Gas as part of its independent charitable trust British Gas Energy Trust (The Trust), has found 42 per cent have difficulty managing their energy bills, but 31 per cent have never sought assistance – whether that is by turning to loved ones or seeking professional advice.
It comes as British Gas and British Gas Energy Trust have partnered with the Post Office and local community-based charities to offer free, drop-in events across the UK this winter.
The pop-up events offer 1-2-1 confidential practical support from trained specialists about budget planning, energy debt advice and energy efficiency measures, as well as help with accessing energy debt write-off grants including The Trust’s Individual and Families Fund, and Energy Support Fund.
The next pop-up events are taking place in Edinburgh and Glasgow on the following dates:
When it came to the reasons why Scots don’t seek support, almost half (40 per cent), thought they wouldn’t qualify, a third (34 per cent) cited stigma or embarrassment and a quarter (26 per cent) said that there’s a lack of information.
A fifth believe there isn’t enough energy advice support out there. And almost a third (31 per cent) are worried about how they are going to keep on top of things this winter.
Abi Robins, Director of Responsible Business at British Gas, said: “We know the colder months can be tough on a lot of people and there isn’t always advice readily available.
“Our British Gas advisors will be on hand to help individuals navigate energy and financial challenges and access the range of support we offer – not only for our customers but also people who use other energy suppliers.
“The pop-ups are just one part of how we are supporting customers this winter. Grants, fund money and energy advice services are available through the Trust – with donations from British Gas topping £200m since 2004 – as well as providing direct support to struggling customers with matched debt repayments and non-repayable credit.”
The study also found rising costs, difficulty managing finances, and fear of disconnection were among the main concerns when it comes to paying energy bills this winter.
When speaking to someone about getting support, 21 per cent would want a face-to-face conversation. But 33 per cent admit they find it difficult to talk about the struggles they face when paying their energy bills.
Of those who have previously got help, 31 per cent used energy provider payment plans, 29 per cent turned to friends or family, 25 per cent used Government schemes, and 21 per cent sought financial advice or counselling.
Over 50 per cent of all respondents think there should be more support programmes to help people managing rising energy costs.
Jessica Taplin, chief executive of British Gas Energy Trust, said: “We know some consumers really want face to face advice, so these pop-ups are just one way we’re helping those already struggling with rising living costs this winter.
“These pop-ups, hosted at post offices across the country, provide free, confidential advice directly to communities to help individuals navigate energy and financial challenges this winter.
“We offer energy debt write-off grants through our Individuals and Families Fund, and Energy Support Fund, both open now, to households facing fuel poverty, among other criteria.
“We’d encourage anyone needing support to come along and find out more at their local pop up.”
Since the partnership between British Gas Energy Trust and the Post Office was established in 2022, there have been 178 in-person pop-ups in 95 locations from Saint Leonards-on-Sea to the Scottish Isles.
Thousands of people have been provided with step-by-step money and energy advice, checking benefits entitlement, and providing energy saving tips as well as follow up appointments for more in depth conversations.
Simon Lambert, Commercial and Operations Director at Post Office, said: “Every week, more than a million energy customers visit our branches to pay bills or top up.
“These pop-ups – held in Edinburgh, Glasgow, Leicester, Leeds, Newport and Stockport – are a fantastic way to connect customers with the additional support they may need this winter.”
Additional support available through British Gas Energy Trust includes the Individuals and Families Fund, which is available to British Gas and non-British Gas customers, with grant payments of up to £1,700 available to households in England, Scotland and Wales. This fund is open to applications now.
Additionally, the British Gas Energy Support Fund is available to British Gas customers only who have debts of £250 to £2,000 on their energy account. This fund opened to applications on 4th November.
Fuel poverty in England is flatlining rather than falling, according to the Committee on Fuel Poverty’s 2024 Annual Report, Can Fuel Poverty be Ended?
In 2023, there were an estimated 13.0% of households (3.17 million) in fuel poverty in England under the Low Income Low Energy Efficiency metric, effectively unchanged from 13.1% in 2022 (3.18 million).
Committee Chair, Rt Hon Caroline Flint said: “Governments from 2010 onwards saw levels of fuel poverty in England falling steadily for almost a decade – a reduction of 40%, only to be followed by 5 years from 2019 to 2024 where fuel poverty did not fall to any meaningful extent.
“There has been a stalling of progress – fuel poverty has flatlined. I don’t think any government anticipated this. Perhaps the stable energy prices for most of the 2010s created an optimism that fuel poverty would continue to fall for years to come. That optimism was misplaced.
“Last year, the Committee hoped that with the pandemic behind us, energy efficiency programmes would step up and progress would continue – even if the government’s milestones were at risk of being missed. Now, it seems the pandemic – when so much stopped – obscured the lack of progress being made.
“This report is not defeatist. The Committee believes fuel poverty can be beaten. But for too many low-income households, the unaffordability of bills, especially in the coldest months, is all too real. We foresee that targeted financial support, possibly including the use of social tariffs, for vulnerable and low-income households may be needed for some years to come.”
The report states that ‘the increase in the amount added to the standing charge element of energy bills, a flat-rate charge incurred by even households with the lowest usage, is regressive in nature.’ Based on current energy price levels, targeted support to the fuel poor will remain important, and necessary, for the foreseeable future.
Nor can fuel poverty be separated from the experience of many households who are struggling to afford their bills or are at risk of getting into energy debt. The report urges a future fuel poverty strategy to include ‘a guarantee of affordable energy for all’ and consideration should be given to low-income households who may not be in receipt of state benefits.
This includes reviewing the Low Income Low Energy Efficiency metric, the current metric used to measure fuel poverty in England, which is based on a combination of household income, energy requirements and energy prices.
The Committee also states that ’effectively targeted energy efficiency programmes are central to reducing fuel poverty’ and notes that the shift away from a ‘fabric first’ approach to improving household energy efficiency since 2022 has proved less effective at making homes substantially warmer.
The report argues that ‘tackling fuel poverty among fuel poor households requires a fabric first insulation approach, completing these programmes for all fuel poor and vulnerable households, before resources are directed at the incorporation of low-carbon heating systems into those properties.’
The government has committed in their manifesto to ensure homes in the private rented sector meet minimum energy efficiency standards by 2030.
The Committee warns that failing ‘to make rapid progress in the private rented sector on energy efficiency will fundamentally undermine any government strategy to end fuel poverty.’
Those living in the Private Rented Sector (PRS), ethnic minority households, and households using prepayment meters (PPMs) are all identified as most at risk of not being able to afford energy and living in a cold home.
Moreover, over 900,000 households with one or more children are in fuel poverty. Any strategy to tackle fuel poverty must be aligned to wider policies with similar end goals, such as those to eliminate child poverty.
The Committee also advocates further research into the impact on low-income households, as well as the prevalence of fuel poverty amongst ethnic minority households. The Committee also sees better targeting and, in particular, data sharing, as key to being able to tackle fuel poverty in future.
Chair, Rt Hon Caroline Flint, said: “Our report exposes hidden aspects of fuel poverty: like very high concentrations of ethnic minority households in fuel poverty in some of our large towns and cities; like the lack of progress in the low-cost private rented sector, where too many people are still living in cold homes.
“This report argues that the Fuel Poverty Strategy requires a reset, a refresh and a new focus, to continue to bear down on a problem which too many low-income households endure year on year. The Committee hopes to see a renewed drive to improve the fabric of our coldest homes – a fabric first approach.
“Energy prices remain about £700 above pre-pandemic levels – and are rising this winter – this poses a serious challenge. But the cheapest energy of all is the energy never used because a house retains its heat and stays warm in winter.”
Published alongside the Annual Report, the Committee’s 2023/2024 Research Project Barriers and Enablers to Net Zero sets out the importance of trusted sources of advice for fuel poor households and identifies barriers to fuel poor households achieving net zero.
23 August 2024 – OFGEM STATEMENT
Every 3 months we 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 the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go up to £149 per year. This is an increase of 10% and adds around £12 per month to an average bill.
The new cap is 6% (£117) cheaper compared to the same period last year (£1,834).
You are covered by the energy price cap if you pay for your electricity and gas by either:
The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have.
If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 24.50 pence per kilowatt hour (kWh). The daily standing charge is 60.99 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.
If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 6.24 pence per kilowatt hour (kWh). The daily standard charge is 31.66 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.
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.
Read about typical household energy use and how the energy price cap is calculated on our Average gas and electricity use explained page.
View and compare 1 October to 31 December and 1 July to 30 September energy price cap standing charges and unit rates by region.
You can also get and compare all the energy price cap (default tariff) levels.
Last year we started a review of standing charges. Our call for input had feedback from more than 30,000 customers, consumer groups, charities and others.
Today we have published an options paper on our ways to reduce standing charges for households, called ‘domestic standing charges’. Standing charges are set by your energy supplier and are also included in the energy price cap. Your supplier will charge you this cost each day, even if you do not use any energy on that day. The charge covers the cost to maintain the energy supply network, take meter readings, and support government social and environmental schemes, like the Warm Home Discount scheme.
View Understand your electricity and gas bill
The options in the paper could reduce the standing charge by between £20 and £100 per year by transferring parts of these fixed supplier costs to the unit rate (the price paid for every unit of energy used).
We know that if these changes are made it could affect people who cannot safely reduce the amount of energy they use. This could be because of their dependence on life-saving medical equipment or living in a low standard of housing with poor insulation.
We are asking energy suppliers to offer energy tariffs that have no or low standing charges as well as their current tariffs. This will mean that energy efficient households will be able to choose a tariff that rewards them for using less energy. It will also mean that other energy customers can also choose from more tariffs that meet their needs.
You could pay less for your energy by changing your energy tariff. Find out if you can change your tariff and how to switch energy supplier.
The options paper also sets out long-term considerations relating to the assignment of network costs, as a part of a broader review of how electricity and gas system costs are recovered from users.
We would like to hear your views on standing charges. The discussion closes on 20 September 2024. Read our standing charges options paper and feedback your views using our online form.
We have also extended our initial 12-month allowance to cover increased debt costs associated with additional support credit which we expect to be in place for at least another 6 months. Additional support credit is often issued to people at risk of being cut off from their energy supply because they cannot afford to top up their meter. This decision means that the most vulnerable consumers will continue to be supported and have an energy supply this winter.
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 to 31 March 2025 will be published by 25 November 2024.
Caroline Abrahams, Charity Director at Age UK said: “Means-testing Winter Fuel Payment (WFP) when fuel prices are rising by 10% spells disaster for pensioners on low and modest incomes or living in vulnerable circumstances due to ill health.
“It means an estimated 2 million older people in all, will face an even steeper mountain to climb in paying their energy bills and staying warm and well when the weather chills. With pensioners also losing the cost-of-living payments they’ve received over the last two years we simply cannot see how some of them will cope.
“This latest bad news about the Energy Price Cap rising quite significantly makes it even more obvious that means testing WFP with virtually no notice & with no protections to safeguard vulnerable groups was the wrong policy choice and one that is potentially hazardous for some older people.”
“There’s scarcely any time to tackle the long-term under-claiming of Pension Credit – for more than a decade a third of pensioners who are entitled to it have consistently missed out. And the million or so older people whose small incomes take them just above the line to claim are horribly exposed – no take-up campaign can help them.”
“Means-testing WFP in these circumstances this winter is reckless and wrong. The Government must think again.”
Age UK urges any older person living on a low income or struggling with their bills to contact Age UK’s free Advice line on 0800 169 65 65 without delay to check they’re receiving all the financial support available to them.
Alternatively, people can visit www.ageuk.org.uk/money or contact their local Age UK for further information and advice.
National Energy Action has responded: Just now, @Ofgem announced that #EnergyBills will rise 9% from October. NEA Chief Executive @adam_scorer says, ‘There is still time for @Ofgem and UK government to act for those at greatest risk, but without support.’
Plans to means-test Winter Fuel Payment in England and Wales will see the Scottish Government’s funding cut by up to £160 million.
Social Justice Secretary Shirley-Anne Somerville has confirmed the Scottish Government therefore has ‘no alternative’ but to replicate the decision in Scotland and restrict payments to pensioners who receive eligible benefits.
Social Justice Secretary Shirley-Anne Somerville said: “Despite all efforts to review our financial position we have been left with no choice but to follow the UK Government and restrict payments to older people who receive relevant eligible benefits.
“This is a necessary decision when faced with such a deep cut to our funding and in the most challenging financial circumstances since devolution. The reduction we are facing amounts to as much as 90% of the cost of Scotland’s replacement benefit, the Pension Age Winter Heating Payment.
“Given the UK Government’s decision to restrict payments to those in receipt of means-tested benefits, such as Pension Credit, and the implications for the Scottish Government detailed above, I have urged the Secretary of State for Work and Pensions to undertake a benefits take-up campaign for Pension Credit and to move forward with plans for a social energy tariff.
“Both of these measures will provide some further protection to energy customers in greatest need.”
Deputy First Minister Kate Forbes commented:
Scottish Parliament: Written answer
The charity has responded to news that, following the UK Government’s plans to means-test the Winter Fuel Payment, the Scottish Government will have no alternative but to replicate the decision in Scotland.
Age Scotland’s Policy Director, Adam Stachura, said: “It’s infuriating that huge numbers of older people will miss out on the vital Winter Fuel Payment when it is devolved to Scotland.
“We recognise the financial challenge the Scottish Government would face to make up the shortfall to keep the payment universal, but we desperately hoped there could be a more effective delivery of this payment and that it could have looked more generous than the UK Government’s new, and meagre, approach.
“At minimum, a quarter of a million pensioners in Scotland on the lowest incomes or living in fuel poverty will no longer receive this vital financial support over the winter months, while hundreds of thousands more on modest incomes are going to struggle with their energy bills even more than normal as a result.
“This brutal decision by the UK Government was made too fast, cuts too deep and its impact will be severe. It’s important that they rethink this move, as it has a huge impact on the devolution of social security and the needs of Scottish pensioners who live in some of the coldest homes in the UK.”
Visit www.age.scot/SaveWFP to sign Age Scotland’s petition to save the Winter Fuel Payment.
HELPING HOUSEHOLDS ESCAPE FUEL POVERTY
· British Gas Energy Trust, incorporating the Scottish Gas Energy Trust, created more than £7 million in societal impact in Scotland over the past four years.
· Number of fuel poor households in Scotland has increased by 60% in past four years, rising from 610,000 to 980,000.
· 46% of direct grant recipients live in the most deprived areas of Scotland.
· Almost two thirds (64%) of beneficiaries in Scotland agreed that they were more satisfied with their lives after receiving support, compared to 54% who said the same before help.
British Gas Energy Trust, the independent charitable trust funded solely by British Gas, has created £264 million in societal impact – more than £7 million in Scotland – over the past four years, according to new analysis by Oxford Economics.
The report comes as the number of fuel poor households in Scotland has increased by 60% between 2020 and 20241, rising from 610,000 to 980,000, due to rises in fuel prices and cost of living. The analysis by Oxford Economics found that, at the peak of the crisis, more than two-fifths (41%) nationwide reported difficulty in paying their bills during this time.2
In response, British Gas Energy Trust, which incorporates Scottish Gas Energy Trust, has tripled its expenditure across the UK, enabled by boosted funding from British Gas, to provide essential support to those who need it most. Since the launch of the Trust in 2004, the energy provider has contributed over £200 million in donations, helping more than 2.2 million nationwide.
In the past financial year 2023/24, British Gas Energy Trust created £40 million in net benefits to society in England, £7 million in Scotland and £2 million in Wales. The impact of the Trust is seen particularly in areas of acute need where people are more likely to be at risk of fuel poverty, with 46% of direct grant recipients living in the most deprived areas of Scotland.
The social return on investment (SROI) in the Trust during this time is 5.5. For every £1 spent by the British Gas Energy Trust, it created £5.50 in value for society – more than double that of the previous report undertaken by Oxford Economics which was 2.4 for the financial year 2014/15. When breaking down the impact of each of the Trust’s programmes, the scheme which provides grants to support-focused organisations saw the highest SROI at £6.50.
Looking at the Trust’s broader economic benefits to society in the last four years, £11 million of additional gains has been made for the exchequer across the UK through additional tax revenue and savings to the NHS by alleviating pressures which negatively impact people’s wellbeing.
Amongst beneficiaries of British Gas Energy Trust, almost two thirds (64%) of beneficiaries in Scotland agreed that they were more satisfied with their lives after receiving the support and guidance, compared with 54% who said the same before receiving support.
The purpose of the British Gas Energy Trust is to alleviate the detrimental impact of fuel poverty through three main programmes. This includes:
· Direct grants programme, helping people to clear fuel debt arrears;
· Financial Assistance Payments (FAP) programme, offering fuel vouchers directly to individuals and families;
· and the Supporting Communities at Risk Programme (SCARP) which funds charity advice agencies across Britain who provide holistic money and energy advice to individuals who have been disproportionately impacted by fuel poverty. This includes those with additional needs such as electrical medical health requirements or disabilities
Jessica Taplin CEO of British Gas Energy Trust said:
“We had a clear goal for the Trust when it was set up 20 years ago – to alleviate the detrimental impact of fuel poverty. With the support of our grant and funded organisation programmes, this new report brings home the positive impact we’ve made so far – but it doesn’t end there.
“Our fight to help people in fuel poverty continues and this year to mark our 20th anniversary, we’re building on our understanding of the issue from the front line, by visiting charities and third sector organisations who support those most at risk of fuel poverty, and hearing from people affected, to take stock on what really helps and the barriers we still need to overcome.
“The aim is to identify and fund future interventions that are proven to support the most vulnerable communities while gathering meaningful lessons to influence societal change and see significant reductions in fuel poverty over the next decade.”
Chris O’Shea, Chief Executive of Centrica, parent company of British Gas and Scottish Gas, said: “The impact that the British Gas Energy Trust has had has been phenomenal. Not only is it reaching people in some of the most deprived areas across the country, it is also positively impacting people’s lives, supporting them with financial aid and guidance in their time of need.
“While it’s been good news that food and energy prices are falling, for many households the cost-of-living crisis is far from over. That’s why we’ve put £140 million into supporting those who need help the most. We will be continuing to work closely with the Trust to ensure that this work continues and to help alleviate the pressures so many are facing – now and in the future.”
Chris Warner, Lead Economist at Oxford Economics, said: “The report underscores the efficacy of interventions targeting fuel poverty to create social value and demonstrates the profound effect of British Gas Energy Trust’s programmes on its beneficiaries’ sense of wellbeing.
“Ultimately, it showcases why charities such as the Trust should collect comprehensive yet proportionate data on their beneficiaries in order to understand and communicate their impact.”
In the upcoming months, British Gas Energy Trust – which incorporates Scottish Gas Energy Trust – is hosting a series of roundtables throughout the year in some of the UK’s deprived areas with its funded organisations to gather insights to help drive further systemic change to reduce fuel poverty.
The locations include, London (Bromley-by-Bow), Glasgow, Doncaster, Newcastle, Bristol, Cardiff, and Leicester.
To find out more to apply for financial grants or support from the British Gas Energy Trust, visit:
People in Scotland have received more than £30 million via two Scottish Government benefits to help them deal with increased energy costs this winter, new statistics have shown.
Winter Heating Payment supports households on low incomes, including older people, disabled people and families with children under five.
Child Winter Heating Payment helps families of the most severely disabled children and young people.
The official figures show more than 400,000 Winter Heating Payments of £55.05 were issued between November last year and the end of March. More than 30,000 Child Winter Heating Payments of £235.70 were made in the same spell.
Winter Heating Payment replaced the UK Government’s Cold Weather Payment in 2023. Most people getting it receive more money on average than via Cold Weather Payment.
People receive Winter Heating Payment whatever the weather, unlike Cold Weather Payment when the temperature needs to drop to a specific level.
Child Winter Payment, introduced in 2020, is not available anywhere else in the UK. There is also no cap on the number of children who can get it in the same family.
Cabinet Secretary for Social Justice, Shirley-Anne Somerville, said: “The £30.2 million paid over the course of winter provides support to those who need it most. It is being paid quickly and effectively to help mitigate the worst of the cost of living crisis.
“Winter Heating Payment guarantees those who qualify will get a payment every year – in contrast to the UK Government approach which needs the weather to be under a certain temperature for a sustained spell.
“Both Winter Heating Payment and Child Winter Heating Payment have recently been increased in line with inflation which means we will be getting more money into people’s pockets in 2024/25. I am pleased that we are getting the vast majority of these payments to people in good time.
“I urge anyone who is struggling during the cost-of-living crisis to visit the Scottish Government’s Cost of Living website for support and advice.”
Tommy Sheppard, MP for Edinburgh East, is calling on the UK Government to take urgent action to extend energy price caps for residents whose homes are heated through district heating.
Residents in Edinburgh East who receive their heat and hot water from district heating have seen eye-watering energy bill increases of more than 500% on unit charges following the UK Government’s Energy Bills Discount Scheme ending at the end of March.
Residents in one newbuild development built in 2019 in Greendykes, built by Places for People, are reporting bills having skyrocketed with some experiencing overnight price increases well in excess of £1200 a year for heat and hot water alone.
The UK Government has repeatedly ignored SNP calls to close a loophole meaning residents getting their heat from district heating sources are not covered by the energy price cap that most households benefit from. The result has been that, following the ending of temporary UK Government support, energy bills for residents and businesses have skyrocketed since April 1st.
Tommy Sheppard MP has written to the UK Government to seek an urgent update on district heating systems being charged at commercial, rather than domestic rates. This has meant residents who are part of district heating schemes fall into a loophole of the UK Government’s energy price cap, meaning price rises for them are not subject to the same controls.
Commenting, Tommy Sheppard MP said: “Residents are worried and rightly angry about the impact of these eye-watering rises. It’s farcical that having done everything right, these residents now face bills well in excess of what they would be paying if they had an individual gas boiler.
“This defeats the entire point of low carbon energy schemes which are essential if we’re to continue to make progress on tackling climate change.
“The UK Government need to urgently bring district heating schemes under the same price protections as the rest of the energy market. It’s not right that energy companies continue to make a killing out of residents purely because of a technicality that the UK Government have been aware of for years and have done nothing to resolve.
“I’m demanding action from UK Ministers. They’ve been asleep at the wheel while residents in my constituency are suffering, they need to fix this now. What’s happening isn’t fair.”
Local resident Claire who has lived in the development for the last 4 years said: “As of the 1st of April my provider has implemented a 500% increase in the price I pay per kWh from 5p to 26p – with no notice to myself or my neighbours.
“I am now facing bills in excess of £200 a month for simple heating and hot water requirements. This has put a huge financial strain on my budgeting, alongside the many other cost of living increases faced today.
“As our home is served by district heating not only are we not protected by any price cap or regulations, we are also trapped to one provider with no option to shop around or swap tariffs, leaving myself and my neighbours forced to find 5 times the money to simply have warm showers and heat our homes.”
