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Scotland fails to hit fuel poverty target

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The government has admitted that it will not end fuel poverty this year as estimates suggest a third of Scots still struggle to heat their homes

Energy Action Scotland fuel poverty plan

1. Resetthe target to end fuel poverty

Discussions on how to eradicate fuel poverty in Scotland must be opened now. A new target that is realistic but ambitious must be set. It must be accompanied by a fuel poverty strategy and action plan with costs and timelines. It is essential that there is not a hiatus following the passing of the 2016 target date, which is now widely regarded as being unacheivable .

2. Fund fuel poverty programmes

In 2006 Energy Action Scotland estimated that£200 million per year each year for ten years would be required, from a varietyof sources, to tackle fuel poverty. This level of expenditure has notbeen achieved and must now be re-evaluated. It is acknowledged that theScottish Government does continue to fund fuel poverty programmes with apositive impact. Programmes designed to reduce fuel poverty across allparts of Scotland must continue to be funded. However, more timely andmore comprehensive public reporting to ensure progress is being made is alsorequired.

3.Consult early on energy efficiency in the private sector

Moves to improve energy efficiency standards in private sector homes were shelved by the Scottish Government in 2015. Energy Action Scotland believes it is important not to lose momentum on this initiative
and urges the Scottish Government to act early in the new parliamentary session. In particular, tenants in the private rented sector, where high levels of fuel poverty are experienced, should have similar support to that given to tenants in the social rented sector.

4. Pledgeto make fuel poverty a central pillar of Scotland's Energy Efficiency Programme

As a result of making energy efficiency a National Infrastructure Priority, the Scottish Government says it will create Scotland’s Energy Efficiency Programme (SEEP). Energy Action Scotland believes the Scottish Government must pledge from the outset that a sizable proportion of SEEP will be directed at home energy efficiency and at the poorest households in particular. Reducing fuel poverty must be at least equal in priority to reducing carbon.

5.Review new devolved powers in relation to fuel poverty

Carry outa review of new devolved powers for Scotland in light of their contribution to tackling fuel poverty in a comprehensive new fuel poverty strategy.

6. Createa fuel poverty cross-departmental group and a cross-party group

Fuel poverty is a cross-cutting issue encompassinghousing standards, energy affordability, low income, health impacts, advice and debt support services among others. Energy Action Scotland therefore believes the Scottish Government should set up a cross-departmental group, chaired by a Minister, to ensure a better understanding that tackling fuel poverty achieves positive outcomes and cost savings across government. Moreover, the creation of a Cross-Party Group on Fuel Poverty and Domestic Energy Efficiency is long overdue in the Scottish Parliament.

The Scottish Government has admitted that it will not meet its target to end fuel poverty in Scotland this year.

Energy bodies reacted with disappointment to the news but not surprise, claiming around a third of the population are still classed as fuel poor.

The Scottish Government has a statutory duty under the Housing (Scotland) Act 2001 to "ensure, so far as reasonably practicable, that people are not living in fuel poverty in Scotland by November 2016".

Until now, Scottish ministers have insisted that they remained committed to the target despite all indications that the gulf could not be bridged. The most recent official figures for the year 2014 showing that around 35 per cent of Scottish households remain in fuel poverty.

However, speaking in parliament today housing minister Kevin Stewart said: "This government has allocated over half a billion pounds since 2009 and this year we are making available more than £103 million to tackle fuel poverty and improve energy efficiency. This money will be used to help install energy efficiency measures to thousands of homes across Scotland, and build on more than 1 million measures already delivered to almost 1 million Scottish households since 2008.

“Our record investment is reflected in the big improvements in the energy efficiency of Scotland’s housing. Two out of five homes are now in the top three ratings for energy efficiency, an increase of 71% since 2010 and 11% in the last year alone.

“While we have welcomed this success, above-inflation energy price increases that are beyond our control have greatly impacted on Scottish households. Based on the expert advice we have now received, we must accept that fuel poverty will not be eradicated this year."

Energy Action Scotland criticised the government for failing to focus equally on the three main causes of fuel poverty, which are housing that is energy inefficient, the high price of fuel bills and low disposable household income.

It said most of the Scottish Government’s focus in tackling fuel poverty has been on energy efficiency.

"While it is important to go on investing in making homes more energy efficient, it is also crucial to address all three causes of fuel poverty as much as possible, including working with other parts of government," said EAS director Norman Kerr.

“Given the Scottish Government’s recognition that its fuel poverty target will not be met this year, we are calling on it to widen discussions to include key stakeholders and for there to be public consultation in order to reset the target as soon as possible.

“Momentum must not be lost and ambition to eradicate fuel poverty must not be lessened.

“The problem of cold, damp and expensive to heat homes must be addressed and there should be no fuel poverty in Scotland.”

Prior to the Scottish parliamentary election in May this year, Energy Action Scotland warned the Scottish Government that it would not meet its fuel poverty target and asked for discussions to be opened to reset the target.

It also issued six key recommendations on fuel poverty going forward (see box).