Consultation on new benefit to help with fuel costs
Views are being sought on the introduction of the Pension Age Winter Heating Payment, a new benefit to replace the UK Government’s Winter Fuel Payment in Scotland.
The Scottish Government has previously committed to delivering the new payment on a like-for-like basis with the existing benefit. It will help more than a million pensioners with heating costs in the winter.
The consultation document sets out proposals for implementing the new payment when it is introduced from the winter of 2024 and asks for responses, which can be submitted until 15 January.
The public’s views on issues such as who should be eligible, the timing and format of the payment and the likely impact of the benefit, are being sought – as well as further evidence about issues specific to people who are off the gas grid.
Social Justice Secretary Shirley-Anne Somerville said: “Pension Age Winter Heating Payment will seek to safely and securely transfer responsibility for the delivery of Winter Fuel Payment to the Scottish Government, ensuring that more than a million pensioners currently eligible for Winter Fuel Payment continue to receive this support.
“This will be an investment of around £180 million in 2024-25 to help older people with the costs of heating their homes throughout the winter.
“Working with individuals and organisations with experience of the benefits system is central to our approach to developing the devolved social security system in Scotland.
“We are now looking for the public’s views, as well as those of relevant experts and organisations – through this consultation – to finalise our policy on this important benefit.”
Energy regulator Ofgem has today (Friday, 25 August, 2023) announced a further reduction in the energy price cap for the last quarter of 2023 (Oct to Dec).
The change will bring the average dual-fuel energy bill below £2,000 a year for the first time since April 2022, saving households an average of £151 on the previous quarter.
From 1 October – 31 December, the cap will be set at an annual level of £1,923 for a dual fuel household paying by direct debit based on the current typical domestic consumption values (TDCV) rate.
Direct Debit
Prepayment
Standard Credit
Economy 7 (electricity only Direct Debit)
July – Sept 2023 cap
£2,074
£2,077
£2,211
£1,400
Oct – Dec 2023 cap
£1,923
£1,949
£2,052
£1,298
The drop, the lowest level since October 2021, reflects further falls in wholesale energy prices, as the market stabilises and suppliers return to a healthier financial position after four years of loss making.
Ofgem is clear that it expects all suppliers to continue improving customer service, to support their most vulnerable customers and to shore up their financial resilience to prevent the kind of failures we saw two years ago. Ofgem recognises that there is some excellent best practice across the sector but expects this to be the norm with poor practice stamped out.
Alongside changes to the price cap, Ofgem has also introduced measures to reduce costs for prepayment meter customers and ensure extra support for those facing disconnection from the network.
The price cap savings – which can be passed on more quickly to customers thanks to the price cap updating quarterly – continues the downward trend since prices peaked at £4,279. However, it remains well above the average before the energy crisis took hold in 2021 and the market remains volatile.
Jonathan Brearley, Ofgem CEO, said: “It is welcome news that the price cap continues to fall, however, we know people are struggling with the wider cost of living challenges and I can’t offer any certainty that things will ease this winter.
“That’s why we’ve introduced new measures to support consumers including reducing costs for those on pre-payment meters, and introducing a PPM code of conduct that all suppliers need to meet before they restart installation of any mandatory PPMs.
“There are signs that the financial outlook for suppliers is stabilising and reasonable profits are returning. With the small additional allowance we’ve made to Earnings Before Interest and Tax (EBIT), this means there should be no excuses for suppliers not to be doing all they can to support their customers this winter, and to reinforce this we’ll be introducing a consumer code of conduct which we will look to have in place by winter.
“This code will ensure there are clear expectations of supplier behaviours especially for their most vulnerable consumers with whom suppliers should be reaching out proactively, with compassion and understanding. There are great examples of suppliers already doing this but I want to see this become the norm in such an essential sector that has such a big impact on people’s lives.”
Ofgem understands that while suppliers cannot control wholesale prices or fix the wider cost of living pressures hitting their customers, now the market has stabilised, they must continue improving customer service and ensure that support across the board is accessible, responsive and understanding, including giving time to make pay arrangements and directing customers to further support and advice. They must also invest in strengthening their financial resilience to protect consumers against the cost of supplier failure.
Additionally, while still low by pre-crisis levels, we are starting to see more and more competitive fixed deals coming onto the market and levels of switching are slowly increasing.
With a lower price cap and reasonable profits starting to return, there is an opportunity for this to continue to grow. Anyone considering fixing should weigh up all the facts and consider what is most important to them, whether that’s the lowest price, or the certainty of knowing exactly what they will pay each month.
It’s important customers are comparing fixed deals with the new, lower price cap announced today. Suppliers are expected to ensure they are transparent in releasing all tariff information to enable consumers to make simple comparisons of the deals available to them across the market.
While the price cap has protected households from the full extent of volatility and surges in wholesale prices over the last two years, it was originally introduced by the Government to protect the minority of consumers who did not switch rather than to cover the vast majority of consumers, as it does now.
It is a blunt tool and in the current market it has costs and as well as benefit. It’s important to look at alternative models to examine whether they could work better with the current volatile market and the move to net zero.
Ofgem has also today published:
A Final Decision to raise the Earnings Before Interest and Tax (EBIT) allowance by £10 per customer per year. Most of this increase is to cover Renewable Obligations ringfencing so that customers’ money is protected in the event of a supplier failure.
Removal of the temporary RO ringfencing allowance, worth £8 per customer and covered by the additional EBIT costs above
A new sliding scale for EBIT meaning if prices surge, the EBIT allowance reduces as a percentage preventing suppliers from making excessive cash gains from a high price market
Final decision on the allowance for additional support credit (ASC) bad debt costs – a new allowance to help ensure some of the most vulnerable consumers remain on supply this winter
Implementation of UNC840 in the cap, reducing the PPM premium
Price Cap model technical changes Final Decision
Levelisation Policy Consultation
By raising the EBIT allowance, Ofgem is taking the next step in its drive to make the retail energy sector more resilient, as we move into another difficult winter when price volatility remains a risk.
At the height of the energy crisis around 30 suppliers failed because they did not have enough capital in the reserve to stay in business – and the cost was shared among all energy consumers, adding £83 to bills.
With suppliers only now starting to recoup a portion of their multi-billion pound losses over the past four years, a small increase in permitted profit margins will allow companies to better cover their costs, attract investment and retain financial stability protecting consumers into the future.
Raising the EBIT allowance from its current rate of 1.9% to 2.4% from 1 October will involve an average £10 increase in bills per year. £8 of this will cover costs to consumers incurred by an additional requirement of suppliers to ringfence enough funds to cover their Renewable Obligations, protecting consumers from additional costs should a supplier go bust.
The EBIT rate, which is well within international norms for energy retail profits and lower than most other business sectors in Britain, will also be altered from a ‘flat rate’ to a more flexible model that tracks the price cap level and tapers as low as 1.75% in the event of another price surge in the wholesale market. This would prevent suppliers from making excessive cash profits in a high-cost market.
Strengthening the commitment to supporting struggling and vulnerable consumers, Ofgem is also reducing the cap for prepayment meter (PPM) customers by £51 per year through an updated approach to calculating the costs of unidentified gas, approved in April this year.
Using some of the benefit from this change, the regulator is now able to introduce an initial 12-month allowance to cover increased debt costs associated with Additional Support Credit that is offered to PPM customers, often at the point of disconnection. This new allowance will help ensure some of the most vulnerable consumers remain on supply this winter.
Longer term, Ofgem seeks to permanently end the PPM premium, where prepayment customers are charged more than those who pay by direct debit to cover the additional costs and resources required by suppliers to provide energy via PPM. A consultation is underway with an aim to ‘levelise’ these standing charges by April 2024 to coincide with the end of government support currently in place via the Energy Price Guarantee.
Morgan Vine, Head of Policy and Influencing at Independent Age said: “Today’s Price Cap announcement offers little comfort to older people living on a low income and struggling to get by.
“Our helpline is continuing to hear from people in later life in financial hardship who have been forced to make sacrifices to pay their bills, including eating one meal a day, washing themselves in freezing cold water, and risking falls by not turning on the lights at night.
“Gas unit costs are still well over double what they were in winter 2020/21 and electricity unit costs are up by over half. The fixed incomes of older people in financial hardship simply cannot keep up with these increases. Long term solutions to protect the most financially vulnerable from high energy prices are desperately needed.
“We’re calling on the government to introduce an energy bills social tariff for those in greatest needed, including people over 65 on a low income and those who have high energy consumption due to illness.
“This long term and sustainable solution would offer some protection to people in later life living on low incomes, so they aren’t forced to make dangerous choices now, and as we approach the winter. “
The next quarterly price cap announcement will be in November 2023, covering January – March 2024.
First Minister announces increased support for households with energy costs
Up to £30 million will be made available through the Fuel Insecurity Fund next year to help households who are at risk of self-rationing or self-disconnecting their energy use, First Minister Humza Yousaf has announced.
The funding will be made available to third sector organisations in the next financial year to support the most vulnerable households in Scotland.
The Scottish Government had previously committed to doubling the Fuel Insecurity Fund, from £10 million to £20 million.
Previous funding has been provided to third sector organisations including the Fuel Bank Foundation, Advice Direct Scotland and Scottish Federation of Housing Associations to provide direct support to households.
First Minister Humza Yousaf said: “I have said my immediate priority is to do everything we can to protect every Scot as far as possible from the harm inflicted by the cost-of-living crisis.
“That is why, in one of my first acts as First Minister, I can confirm today that we will build on our commitment to double the Fuel Insecurity Fund from £10 million to £20 million – to now triple it to £30 million for 2023-24.
“In a country as energy rich as Scotland, we should not have people living in fuel poverty. My government will renew and redouble our efforts to lift people out of poverty, to make work fair, to make our economy work for the people.
“With energy bills still at historically high levels and the UK Government’s Energy Bills Support Scheme being withdrawn from 1 April, over the next year our Fuel Insecurity Fund will continue to be a vital lifeline for many struggling households in the country.
“It is of course only as a result of the UK Government’s mismanagement of the economy and the cost of living crisis that we are having to take this action. This Scottish Government will always put the interests of the people of Scotland first.”
– Chancellor declares “prepayment meter penalty over from July”, cutting energy bills for over four million families. – Families on prepayment meters will no longer pay more compared to people on direct debts. – Follows support this winter which has already cut the typical household bill by almost half.
OVER FOUR MILLION families are set to save £45 a year on their energy bills from July as the Chancellor ends the prepayment premium.
Households on prepayment meters pay more on average compared to direct debit customers due to extra costs firms take on managing meters – such as supplying vouchers and collecting payments – being passed on to users.
The vast majority of households who rely on prepayment meters are typically vulnerable or low income, which means the higher tariff and inability to spread the cost is hitting those who can least afford it.
At his Spring Budget next week, the Chancellor is expected to announce fairness reforms to energy bills, bringing the bills of families on prepayment meters in line with average direct debit energy bill under the Energy Price Guarantee.
Chancellor of the Exchequer, Jeremy Hunt said: “It is clearly unfair that those on prepayment meters pay more than others. We are going to put an end to that.
“From July four million households won’t pay more than those on direct debits. We’ve already cut energy bills by almost half this winter, and this latest reform is proof again that we’re always on the side of families.”
Energy Security Secretary Grant Shapps said: “Charging prepayment meter customers more to receive their energy is a tax on some of our most vulnerable – this change will stop that.
“It’s even more important at a time Brits are faced with high energy costs and when we’ve seen vulnerable households wrongly forced onto them. While actions I’ve pushed for have meant forced installations are on pause, warrants aren’t being waved through and Ofgem is toughening up its reviews, our changes will make sure families aren’t penalised simply for how they heat their home.”
The change is expected to come into effect from July 1 through updates to the Energy Price Guarantee at a cost of £200 million.
From April 2024, when the Energy Price Guarantee ends, the Chancellor has tasked energy regulator Ofgem to report back on additional regulatory options to permanently end the premium and bring fairness to bill payment methods in the long term.
The move is the latest government intervention to help families with their energy costs after the average family bill was cut by £1300 this Winter.
Harbour Homes has received an award from The National Lottery Community Fund, made possible by National Lottery players, to help tenants of seven housing associations with fuel poverty and energy efficiency during the cost of living crisis.
Harbour Homes, along with six other landlords that make up the ARCHIE alliance, own and manage 6,000 socially rented properties in Edinburgh.
A recent tenant survey from one of the ARCHIE members found that 40% of tenants had not put their heating on as they could not afford to heat their homes.
The funding allows Harbour Homes to hire two Energy Advice Officers who will:
Provide support to reduce fuel poverty, including support to deal with energy debt and avoiding future, energy debt, by proactively identifying households at risk and responding to referrals from ARCHIE members
Promote the service to external agencies supporting tenants and work in partnership with local organisations and wider fuel poverty initiatives to better support tenants directly
Deliver energy advice workshops and drop in events at local community venues supporting local people with free information and advice
Develop materials to share advice and information on energy efficiency for tenants, staff and the wider community
Help tenants adjust to net zero energy improvements such as solar panel installation or new heating systems
Heather Kiteley, Group Chief Executive of Harbour, said: “It is vital that we support our tenants at such a challenging time. I’m glad we can offer this service to our tenants and those of the six other members of the ARCHIE alliance.
“With the removal of energy price caps on the horizon and other funding sources and organisations being oversubscribed, this will be a real lifeline for people experiencing the horrendous consequences of fuel poverty.”
The National Lottery Community Fund Scotland Chair, Kate Still, said: “This project, delivered by Harbour Homes Scotland Limited, is a great example of community activity in action, showing just what can be achieved when people come together for a common cause or to help others.
“It’s all thanks to National Lottery players that we can help give charities and community groups throughout Scotland greater certainty during challenging times.”
Energy regulator Ofgem has announced its quarterly update to the energy price cap for the period 1 April – 30 June 2023.
From 1 April the energy price cap will be set at an annual level of £3,280 for a dual fuel household paying by direct debit based on typical consumption, a reduction of almost £1,000 from the current level, of £4,279 which reflects recent falls in wholesale energy prices.
The £3,280 figure indicates how much consumers on their energy suppliers’ basic tariff would pay if the government’s Energy Price Guarantee (EPG) were not in place.
From 1 April, the government has set the EPG at £3,000 for the typical bill – meaning that consumers will not pay the full level of the energy price cap.
This reduction in the price cap level reflects a significant reduction in the cost of buying and providing energy for customers. If it continues, it will mean that by the summer, prices paid by consumers will drop for the first time since the global gas crisis took hold more than 18 months ago.
The energy price cap was introduced by the government and has been in place since January 2019, and Ofgem is required to regularly review the level at which it is set. It ensures that an energy supplier can recoup its efficient costs while making sure customers do not pay a higher amount for their energy than they should. The price cap, as set out in law, does this by setting a maximum that suppliers can charge per unit of energy.
Ofgem CEO Jonathan Brearley said: “Although wholesale prices have fallen, the price cap has not yet fallen below the planned level of the Energy Price Guarantee. This means, that on current policy, bills will rise again in April. I know that, for many households this news will be deeply concerning.
“However, today’s announcement reflects the fundamental shift in the cost of wholesale energy for the first time since the gas crisis began, and while it won’t make an immediate difference to consumers, it’s a sign that some of the immense pressure we’ve seen in the energy markets over the last 18 months may be starting to ease. If the reduction in wholesale prices we’re currently seeing continues, the signs are positive that the price cap will fall again in the summer, potentially bringing bills significantly lower.
“However, prices are unlikely to fall back to the level we saw before the energy crisis. Even with the extensive package of government support that is currently in place, this is a very tough time for many households across Britain.
“Where people are struggling, we urge them to contact their supplier to make sure they are getting all the help and support they are entitled to. We also think that, with bills continuing to be so high, there is a case for examining with urgency the feasibility of a social tariff for customers in the most vulnerable situations.
Ofgem has robust rules in place to help people in vulnerable situations, and suppliers are obliged to offer payment plans and direct customers to available support.
Bill-payers will continue to receive additional support via the EPG until the end of March 2024, as confirmed by the Chancellor on Thursday 17 November 2022. The level of this support is set by Government.
There is no immediate action for consumers to take as a result of today’s announcement.
Ofgem continues to protect consumers through its ongoing robust regulation of the market, taking enforcement action where necessary and providing support to those who need it the most.
The next quarterly price cap update will be on 26 May 2023.
UK Government leaving people to prop up energy bosses’ profits, says STUC
Roz Foyer, STUC General Secretary, stated: “The energy price cap might have fallen today but the callous decisions of the UK Government means most people will be facing higher energy bills from April 1st. Thousands of people are being pushed into poverty and face choosing between a hot meal or a warm home.
“There is no justification for continuing to ask people across the UK to pay the price for energy companies billions of profit. We need to take back control of our energy system, tax these companies properly, and end the outrageous injustice of rising energy bills.”
An Ofgem spokesperson said: “These are extremely serious allegations from The Times. We are launching an urgent investigation into British Gas and we won’t hesitate to take firm enforcement action.
“It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so.
“We have launched a major market-wide review investigating the rapid growth in prepayment meter installations and potential breaches of licences driving it.
“We are clear that suppliers must work hard to look after their customers at this time, especially those who are vulnerable. The energy crisis is no excuse for unacceptable behaviour towards any customer, particularly those in vulnerable circumstances.”
FORCE-FITTING payment meters in the home of vulnerable people is “shocking” and unnecessary, according to a leading energy expert.
Energy UK’s former CEO Angela Knight was commenting on the results of an investigation by the Times newspaper which found that British Gas was forcing people to have pre-payment meters.
It found that debt collectors working for the firm were breaking into people’s homes to fit the meters.
Ms Knight told GB News: “I do think it’s a shocking story and I think it’s a wake up call not just to [British Gas owner] Centrica, but to all the energy companies.
“Firstly, there are people who say, I’m not going to pay, they can afford to pay, but they won’t pay…
“That’s what this process is supposed to be for, the process being that the energy company applies to the court for a court order in order to put in a pre-paid meter.
“So the individuals who say they won’t pay, but as I say, they can afford to, they are getting a pre-paid meter, so they’re not cut off.”
In a discussion with Bev Turner, she said: “But then, you’ve got a lot of people who fit into that vulnerable category and that’s people like the elderly, or people who are disabled, it’s those with very young children.
“And if they have hit a difficulty with being able to pay for their energy, and a lot of people are finding it difficult at the moment, then a pre-paid meter is not the answer.
“They need to have an arrangement with their energy company and importantly, the energy company has a responsibility to find out first if somebody who isn’t paying falls into one of those special categories, and vulnerable categories.
“And if they do, then they shouldn’t be applying to the courts, what they should be doing is making another arrangement.”
Ms Knight added: “Now what Centrica said is they’ve stopped all of their applications right now and good on them.
“Clearly, they’re going to have to sort out the vulnerable from the not vulnerable, but they have not got a few months to do it, and then they can refresh how they approach this problem.
“And I think that what The Times’ sting has done, and what the Centrica announcement means, is that all other energy companies pay exactly the same amount of attention first, before applying for that court order.”
Commenting on the decision by Ofgem, which has ordered British Gas to stop force-fitting prepayment meters, the National Association of Property Buyers said: “The sorry story of utility providers that was uncovered by The Times newspaper investigation highlights the potential injustices faced by many people in financial difficulty.
“The NAPB welcomes the fact that the company concerned has held their hands up and that Ofgem will be taking action to address the issue.
Spokesman Jonathan Rolande continued: “There is still a question to answer though. How, as a society do we deal with a situation where a householder has missed numerous payments and received letters and calls offering help, all to no avail?
“With heat, light and water being such basic human essentials, at what point are the companies allowed to disconnect? If allowed to continue unchallenged the lost revenue would inevitably be passed on to other paying customers – would that be fair? The providers are companies, should they carry the cost of unpaid bills alone?
“But the case in favour of the utility providers is seriously undermined by the huge profits made and massive salaries paid to executives – their pay is often counted in millions and there is no public sympathy for their cause.
“For now it is a relief that the intrusive practises of forced or tricked entry will be gone, but there are business and moral dilemmas for the companies, government and the public that will need to be addressed to ensure that the burden of unpaid bills doesn’t fall on those who are struggling but paying.”
Fuel poverty charity reveals 45 people per day die from cold homes
Last month, ONS releases figures showing 13,400 more deaths occurred in the winter period (December 2021 to March 2022) compared with the average of the non-winter months.
Fuel poverty charity National Energy Action says that based on modelling by the World Health Organisation, cold homes caused 4,020 excess winter deaths last year in England and Wales. That’s 45 people per day in winter months.
Despite the new figures being the second lowest for decades, the charity warns they only cover last winter, when energy bills were half the amount that they are now.
The report coincides with the full publication of National Energy Action’s Fuel Poverty Monitor, which finds that households that have a low income and have a medical condition or use powered medical equipment at home are most at risk of the worst impacts of living in a cold home.
They say these households have not been provided with adequate support during the Energy Crisis and are fearful next year’s winter mortality figures will be much worse.
The Office of National Statistics (ONS) has released figures showing there were 13,400 more deaths in England and Wales in the winter period (December 2021 to March 2022) compared with the average of the non-winter months.
Fuel poverty charity National Energy Action has said that up to 4,020 of these deaths were preventable and were caused by the impact of cold homes. That’s 45 people dying per day in the winter months last year – 42 in England and three in Wales. However, because of the time lag of the data, the true picture for this winter is likely to be much worse.
Last October 4.5 million UK homes were in fuel poverty, according to the charity’s figures, now – even with Government support, it’s 6.7 million UK households. The average annual bill has almost doubled in a year – from £1,271 to £2,500. The charity warns this means next year’s ONS figures are likely to be much worse.
Adam Scorer, chief executive of National Energy Action (NEA), said: “Every year we see the consequences of failing to keep the most vulnerable people safe and warm during the coldest, winter months.
“Today’s figures show a significant drop in premature winter deaths, partly because of a higher number of deaths outside winter months, but it’s still 45 people per day in the winter months. The truth is that we should not accept any death directly caused by a cold, unsafe home.
“Next year, these statistics will expose the full impact of today’s energy crisis. The toxic combination of extraordinary heating costs, stagnant or falling incomes, and our notoriously poor, unhealthy housing stock will take a heavier toll with lives blighted by debt, ill health, and worse.
“Milder weather may not save us, or thousands of vulnerable households this winter. We must do all we can now to prevent a public health emergency and further needless deaths. Fuel poverty needs long term solutions, but this winter we need the UK Government to give more support and stop millions falling through the cracks with the most awful consequences.”
The ONS figures cover the same period as National Energy Action’s Fuel Poverty Monitor, which is released in full on Thursday 19 January. The Executive Summary was released on Tuesday 17 January.
The Fuel Poverty Monitor shows that households falling into multiple intersecting categories of vulnerability are being disproportionately affected by the Energy Crisis.
While all low-income households are feeling a significant strain during the crisis, impacts go beyond those receiving means-tested benefits, and are felt most acutely by those households that have intersecting categories of vulnerability. These households are not caught by traditional identification measures and new ways of finding vulnerable households are required.
In particular, those households that have both a low income and have a medical condition or in need of powered medical equipment at home are most at risk of the worst impacts of living in a cold home. They have not been provided with adequate support.
Previous research has consistently demonstrated the links between cold homes and health conditions, especially musculoskeletal, cardiovascular, and respiratory conditions, as well as conditions related to mental ill health.
And, a recent systematic review of evidence from across the globe concluded that fuel poverty is associated with “poorer general health, poorer mental health, poorer respiratory health, more and worse controlled chronic conditions, higher mortality, higher use of health services and higher exposure to health risks, with worse results for vulnerable groups across dimensions of inequality.”
Moreover, cold homes are linked to the development and/or exacerbation of cold-related illnesses, especially in winter, and contribute directly to excess winter deaths, hospitalisations, and wider pressure on health and social care services.
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.”
Save the Date: November 4, 2023
Where: McDonald Library, The Nelson Hall
Address: 2-8 McDonald Rd, Edinburgh EH7 4LU
