Changeworks welcomes the Scottish Government’s commitment to support heat decarbonisation and a just energy transition following yesterday’s Budget. However, we are concerned about cuts to key programmes that will help deliver these goals and benefit households across Scotland.
The Budget rightly acknowledges that “improving energy efficiency is one of the most cost-effective ways to cut emissions and reduce bills”, and we welcome the decision to uphold funding for energy efficiency and decarbonisation. Likewise, the increase in spending to address fuel poverty, such as to winter heating payments, is also a positive step in addressing the immediate rise in fuel poverty across Scotland.
In Scotland, homes account for 13% of carbon emissions, and as of 2023, 34% of Scots were in fuel poverty – a figure that has undoubtedly increased since.
However, funding for energy efficiency and decarbonisation largely remains stagnant, despite the fact that providing these measures offers long-term solutions for households and delivers significant positive social, health and economic outcomes.
Inflation is eroding the impact of these programmes. This will slow the progress made and leave even more households at risk of fuel poverty. This is deeply concerning given the scale and urgency of the accelerating climate emergency and levels of fuel poverty.
Changeworks supports the Scottish Government’s ambition to decarbonise in a way that is just and provides wider benefits. However, key programmes need to be scaled up in a way that means their impact increases over time to ensure Scotland meets its climate change plan and reduces fuel poverty.