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“With energy bills still at historically high levels and the UK Government’s Energy Bills Support Scheme being withdrawn from 1 April, over the next year our Fuel Insecurity Fund will continue to be a vital lifeline for many struggling households in the country.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.”
Clinical leaders, health experts and ministers will convene in Downing Street for an NHS Recovery Forum today.Scotland’s First Minister hosted a meeting of the Scottish Government’s Resilience Committee yesterday to discuss ongoing pressures on Scotand’s struggling health service.
In addition to his regular meetings on the health service, the Prime Minister will host the Forum to bring together experts from across the health and care sector to identify opportunities to go further and faster on improving performance and outcomes.
The Forum will major on four crucial issues: social care and delayed discharge; urgent and emergency care; elective care; and primary care.
Some of the best health and care minds in the country will use the session to share best practice and to understand whether any innovations developed at a local level could be applied to other regional areas or on a national basis.
As the Prime Minister set out in his speech earlier this week, innovation is at the heart of the UK government’s approach and will be a vital aspect of the solution, and so Forum attendees will include representatives from both the public and independent sector to ensure we’re harnessing a wide spread of expertise and talent.
The Forum is the next step in the significant action that the government has taken to improve outcomes and relieve the immediate pressures on the NHS and in social care caused by the pandemic, with further pressures due to the recent rise in covid and flu cases.
On improving capacity in the NHS, the government has provided an extra £500 million to speed up hospital discharge this winter and we’re also increasing bed capacity by the equivalent of 7,000 more beds.
The NHS is rolling out virtual wards across England, with an ambition to establish 40-50 virtual ward beds per 100k population, by December 2023. Virtual wards are where people, for example, who have acute respiratory infections can actually be treated at home with telemedicine or pulse oximeters and there is also a new fall service which can save about 55,000 ambulance call outs a year by treating people with falls at home.
In total, the government will invest up to £14.1 billion additional funding over the next two years to improve urgent and emergency care and tackle the backlog – the highest spend on health and care in any government’s history. £7.5 billion of this support is for adult social care and discharge over the next two years, which will also help deal with immediate pressures.
91 Community Diagnostic Centres have been opened so far and they have delivered over 2.7 million tests, checks and scans to help diagnose patients earlier.
The government is also continuing to grow the NHS workforce, with around 42,000 more staff than a year ago, including over 10,500 more nurses and almost 4,700 more doctors.
The government is investing at least £1.5 billion to create an extra 50 million general practice appointments by 2024, while the NHS is accelerating the rollout of new state-of-the-art telephone systems to make it easier for patients get through to their GP surgeries.
Earlier this week, the Prime Minister set out one of his key promises that NHS waiting lists will fall and people will get the care they need more quickly. He also pledged to make sure the NHS is built around patients.
The Forum will run for the majority of Saturday and attendees will include chief executives and clinical leaders from NHS organisations, local areas and councils from across the country, clinical experts from Royal Colleges and independent sector organisations working with health and social care services to deliver services for patients.
The Health and Social Care Secretary, the Chief Secretary to the Treasury, the Chancellor of the Duchy of Lancaster and Chief Executive Officer (CEO) of NHS England will attend the Forum.
A Downing Street Spokesperson said: “As the Prime Minister made clear this week, easing the immediate pressures whilst also focussing on the long-term improvement of the NHS is one of his key promises.
“That’s why we’re bringing together the best minds from the health and care sectors to help share knowledge and practical solutions so that we can tackle the most crucial challenges such as delayed discharge and emergency care.
“We want to correct the unwarranted variation in NHS performance between local areas, because no matter where you live you should be able to access quality healthcare.”
First Minister Nicola Sturgeon has chaired a meeting of the Scottish Government resilience committee (SGoRR) to discuss the response to ongoing winter pressures on the health and social care system.
In addition to the FM, yesterday’s meeting was attended by Deputy First Minister John Swinney, Health Secretary Humza Yousaf, other Cabinet ministers, and key partners from across the system including senior representatives from NHS Boards, COSLA, Integration Joint Boards and the Scottish Ambulance Service.
The latest situation with flu and COVID-19 infections was covered, along with the increased demands on acute sites and social care which have been experienced over the Christmas and New Year period.
A number of measures are being taken to alleviate pressures on the system, improve patient flow and ensure people receive the right care in the right setting. These include the use of Flow Navigation Centres as part of the redesign of urgent care, Hospital at Home and ambulance service staff providing treatment, where appropriate, to help avoid hospital admission.
The Health Secretary will update parliament at the earliest opportunity on ongoing work to support the system, and further resilience meetings will be held to monitor the situation in the coming days and weeks as required.
The First Minister said: “It is clear that health and social care is currently experiencing a period of intense and indeed unprecedented pressure. Staff are working exceptionally hard and have been doing so throughout the Christmas and New Year period.
“This comes after nearly three years of pandemic-related demands on the system, and we are all incredibly grateful to them for their efforts.
“I am clear that the Scottish Government must and will do everything it can to support our health and care service throughout the next few weeks. We remain in daily contact with Health Boards and there is already a huge amount of work being done, but we will leave no stone unturned to explore and implement any additional measures that could be taken to help alleviate pressures.
“With that in mind we will continue to work with all partners to implement actions that can help ensure the workforce is supported to deliver the high standards of care that we want everyone to receive.
“This will include actions to reduce unnecessary attendances at A&E – ensuring people get care in more appropriate settings, and those who need hospital care get it quickly, and also on effective discharge arrangements to reduce pressure on hospital occupancy. My thanks go to all those working incredibly hard across the whole health and care system during this period of exceptional pressure.”
The Prime Minister, Chancellor Nadhim Zahawi and Business and Energy Secretary Kwasi Kwarteng met industry leaders from the electricity sector yesterday to discuss what more they can do to help people struggling with rising energy prices– but the meeting did nothing to resolve the impending crisis.
The Prime Minister, Chancellor, Business and Energy Secretary stressed the need to act in the interest of the country in the face of rising energy prices caused by Putin’s illegal invasion of Ukraine and how vital it was that the Western world continued to stand by the Ukrainian people during their battle for survival.
The Chancellor and energy firms agreed to work closely over the coming weeks to ensure that the public, including vulnerable customers, are supported as unprecedented global events drive higher energy costs.
Government support worth £37 billion is being provided this year to help people with the rising cost of living, including £1,200 for the most vulnerable households over the course of the year and £400 discounted off everyone’s energy bills from October.
It was noted that the market is not always functioning for consumers, and extraordinarily high bills will ultimately damage energy companies.
As set out in the Energy Security Strategy, the Government has launched a consultation to drive forward market reforms and ensure the market works better for consumers. Discussion focussed on how Government and industry can collectively drive forward reforms to ensure the market delivers lower prices.
The Prime Minister, Chancellor and Business and Energy Secretary emphasised the importance of investing in North Sea oil and gas, renewables, biomass and nuclear to strengthen our domestic energy security.
The Chancellor added the Government continues to evaluate the extraordinary profits seen in certain parts of the electricity generation sector and the appropriate and proportionate steps to take.
The Prime Minister set out that it will be for the next Prime Minister to make significant fiscal decisions.
Prime Minister Boris Johnson said: “Countries around the world are feeling the impact of Putin’s damaging war in Ukraine. We know that this will be a difficult winter for people across the UK, which is why we are doing everything we can to support them and must continue to do so.
“Following our meeting today, we will keep urging the electricity sector to continue working on ways we can ease the cost of living pressures and to invest further and faster in British energy security.
“We are continuing to roll out government support over the coming months, including the second £324 instalment of the cost of living payment for vulnerable households, extra help for pensioners and those with disabilities, and the £400 energy bills discount for all households.”
Chancellor of the Exchequer, Nadhim Zahawi, said: “This morning I hosted industry leaders from the electricity sector to discuss what more they can do to work with Government and act in the interest of the country in the face of rising prices caused by Putin’s illegal invasion of Ukraine.
“We have already acted to protect households with £400 off energy bills and direct payments of £1,200 for 8 million of the most vulnerable British families. In the spirit of national unity, they agreed to work with us to do more to help the people who most need it.”
The meeting was attended by representatives from:
EDF
RWE
E.ON
Drax
Orsted
Uniper
National Grid
SSE
ScottishPower
Centrica
Octopus Energy
Vitol
Intergen
Greencoat Capital
Energy UK
Scottish Government Resilience Room convened to discuss ‘cost emergency’
The First Minister chaired the Scottish Government Resilience Committee yesterday (August 11) to discuss urgent steps to mitigate the growing cost emergency which is affecting people and businesses.
Ministers assessed the current situation and likely scenarios in the months ahead and agreed a number of immediate actions. The Scottish Government will:
Continue to maximise the direct financial assistance available to those most in need, principally through ongoing work to extend eligibility for and increase the value of the Scottish Child Payment
Undertake an emergency budget review to assess any and all opportunities to redirect additional resources to those most in need, reduce the burdens on business and stimulate the Scottish economy
Consider urgently all options within devolved powers for regulatory action to limit increases in costs for people, businesses and other organisations
Bring together energy companies, banks and food retailers to examine what further help can be provided by these businesses to limit cost increases and protect those most vulnerable
Work with partners to strengthen the safety net of emergency food/fuel provision, prioritising a ‘cash first’ approach
Provide further advice to households on using energy more efficiently and reducing consumption
The Resilience Committee will meet on a weekly basis for the foreseeable future to oversee and direct progress on these immediate actions and keep under ongoing review any further steps that the Scottish Government can take.
In addition to doing everything possible within its powers, the Scottish Government is renewing its call for urgent and substantial action from the UK Government including:
An immediate doubling of the direct financial support already provided, with payments made by October. It is estimated that for an out-of-work couple with two children, the payments already announced by the UK Government fall around £1,600 short of meeting the recent changes to benefits and living costs – a gap that must be filled
Cancellation of the forthcoming increase in the energy price cap, followed by urgent work between the government and energy companies on energy market reforms and associated financing options to ensure sustainable costs for consumers in the long term
The urgent introduction of an energy price cap for Small and Medium Enterprises
Support for business to prevent closures due to energy price rises and investment in economic stimulus to minimise the scale of the projected recession
A further windfall tax to ensure nationalisation of the profits being made out of the current pressures
Additional funding to support public sector pay increases and protect the recovery of public services from the pandemic
The First Minister said: “It is clear that the UK currently faces a rapidly escalating emergency that goes beyond simply the cost of living and is now a more general cost of everything crisis. This emergency may be of a different nature to the COVID-19 pandemic, but it is on a similar scale.
“In the absence of substantial and urgent action, this emergency will cause acute deprivation and suffering. It will affect access to practical necessities for millions of people across the UK. Bluntly, it will cost lives.
“To illustrate the severity of the situation, the Scottish Government estimates that, even with current UK Government mitigations, at least 700,000 households in Scotland – 30% of all households – will be living in extreme fuel poverty by October. That number could be even higher, if the Ofgem price cap for October 2022 is above £2,800.
“It is essential, therefore, that the response from government at every level is commensurate, in scale and speed, to the nature and magnitude of the emergency.
“In developing a response, governments must first and foremost address immediate need. We must all focus on supporting individuals, businesses and jobs by addressing the principal root causes of the problem.
“Scottish Ministers are clear that the powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government. This is reflected in the actions we have proposed and set out today.
“At the same time, the Scottish Government will continue to do everything within our resources and powers to help those most affected.”
