Cost of living support

More than £2 million will fund wrap-around support to households

The Scottish Government will invest nearly £2.2 million to enable the Wise Group to provide wrap-around support to individuals and families on low incomes in six local authority areas.

The investment, from the Tackling Child Poverty Fund, was announced by Social Justice Secretary Shirley-Anne Somerville during a Scottish Parliament debate on supporting households with cost-of-living pressures and rising energy bills.

It will allow the Wise Group to continue with work which has so far helped 3,200 households, enabling people to find work, increase their skills and improve their financial situation.

The wrap-around nature of the support means mentors from the Wise Group are also able to support people to improve their mental health and wellbeing.

Ms Somerville said: “We know people continue to face pressures with the cost of living and the recent announcement that energy bills are set to rise again this month will only add to those pressures.

“The Wise Group work we are funding, offers support not just with an immediate crisis, but aims to help people make long-term improvements to their financial stability, helping them to access help with issues such as childcare, training and finding sustainable work.

“Eradicating child poverty is the Scottish Government’s overriding mission. This year’s budget commits more than £3 billion to a range of actions to tackle poverty and the cost of living. However our efforts are undermined by the social security policies of the UK Government, not least the two-child cap which prevents parents from claiming universal credit for more than two children.

“That is why we will develop the systems necessary to effectively scrap the impact of the two-child cap in 2026. The Child Poverty Action Group estimates that scrapping the cap in Scotland could lift 15,000 children out of poverty.”

Sean Duffy, Wise Group Chief Executive said: “This investment is a vital opportunity to rethink how we deliver services, strengthen local partnerships, and take a preventative, ‘invest to save’ approach that drives lasting change in tackling poverty.”

Fuel Insecurity Fund: support for those who need it most

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

More information on the Fuel Insecurity Fund