Project background and approach
This webinar shared findings from Changeworks’ 2026 update to a report produced three years earlier. The original report, A Perfect Storm, was published in 2023 which explored the drivers, barriers and solutions to fuel poverty in rural Scotland. It considered what has changed, which challenges remain, and what action is needed to reduce fuel poverty in remote, rural and island communities. The conversation included reflections from Matthew Cole, Chair of the Scottish Fuel Poverty Advisory Panel.
Research findings
The webinar shared high-level learnings from the research report, covering the following key topics. The update draws on recent literature review, a nationally representative household survey, a stakeholder workshop and analysis of the latest Scottish House Condition Survey data (2024).
- The current picture of fuel poverty: Fuel poverty remains high across Scotland. National fuel poverty fell from 34% in 2023 to 29% in 2024 but is still above the pre-pandemic level of 25%. Extreme fuel poverty rose from 12% to 14%.
- Key drivers of fuel poverty in rural Scotland: Many drivers identified in the 2023 report remain, including high fuel costs, infrastructure challenges (e.g. access to smart meters), and retrofit challenges stemming from older, larger and more exposed homes.
- Structural barriers to reducing rural fuel poverty: Supply chain limitations, funding challenges associated with short cycles, misaligned timelines and focus of delivery models on volume and uncertainty regarding standards for social landlords.
- Solutions and priority actions: The solutions discussed build on those laid out in the 2023 report. Focusing on those which might help to provide short term relief and those which will bring about long-term change. These included electricity pricing reform, investment in rural supply chains, changes to funding structures and investment in local energy generation and infrastructure, including local energy systems.
Reflections from the Scottish Fuel Poverty Advisory Panel
Matthew Cole, Chair of the Scottish Fuel Poverty Advisory Panel, reflected on the scale of the challenge and the need for a more focused strategic approach. The panel scrutinises progress towards Scotland’s statutory fuel poverty targets and advises Scottish ministers.
The 2030 interim target is unlikely to be met without a significant shift in approach. A revised strategy needs clear governance, resources, monitoring and evaluation, and a stronger link between actions, drivers and measurable outcomes.
He stressed that energy efficiency alone will not remove households from fuel poverty if income remains low and energy prices continue to rise. Strategy must holistically address energy advice, income, electricity pricing and the circumstances of remote, rural and island communities.
Wider application and next steps
The need to address rural fuel poverty remains urgent. Some progress has been made, but energy costs remain high, structural barriers persist and further price volatility could deepen inequalities.
Changeworks will use the 2026 update to support sector discussion and inform action by local, regional and national partners. Scotland’s forthcoming fuel poverty strategy is an opportunity to embed a coordinated, rural-specific approach and ensure the net zero transition delivers warmer, healthier and more affordable homes.
Q&A
The following sections picks up on the key themes from the Q&A and aims to address the questions that we did not get time to cover as part of the webinar. If you have any further questions, please get in touch via email.
1. Rural communities hosting low-cost renewable generation often cannot access discounted local electricity, despite selling power into the grid. This was framed as a policy barrier that contributes to fuel poverty and limits the affordability of low-carbon heating such as heat pumps.
- The research recognises the juxtaposition of electricity being generated in rural areas with local population having limited (if any) access to the benefits.
- The report speaks to two-fold action needed:
- Investment in local infrastructure to be able to benefit from local energy production, including battery storage and grid capacity
- Increase local ownership of energy assets through community wealth building agenda.
- Changeworks are currently exploring routes to better support communities benefit from improved local energy systems and where relevant invest community benefit funds to help tackle fuel poverty.
2. What practical action communities and local partners can take now to address rural fuel poverty, alongside wider policy change from Scottish and UK Government?
- The importance of the role of community action in tacking the fuel poverty crisis is highlighted throughout the report, including the role of community organisations as a trusted party in advice delivery.
- This primary function of this report was to provide a higher-level look at the issues in order to provide succinct update. There is therefore less of a focus on detailed community specific actions. However, the 2023 report provides more detail on this as part of the solutions section, which are still very much applicable three years on.
- Changeworks as an organisation sees the value of community level action and is exploring a range of pilot projects to tailor support to different communities. We currently act as a partner on or deliver projects such as Rural Energy Outreach Service and Highland Energy Community Partnership.
3. Concerns were raised about whether a fabric-first approach can be recommended without stronger retrofit quality assurance, given reported non-compliance in the sector, gaps in consumer protection and capacity pressures on community organisations delivering high-quality retrofit.
- Stakeholders that Changeworks engaged with as part of this research identified similar issues to those raised at the webinar, resulting from fabric improvements being unregulated or not limited to a single trade. The solutions section includes a recommendation to improve training and accreditation/apprenticeships available in retrofit space to improve quality.
- The report and webinar discussions acknowledges that fabric improvements are necessary to enable effective and long-lasting retrofit that addresses both decarbonisation and fuel poverty concerns.
- Changeworks approach to retrofit aims to place quality assurance at the centre of delivery via dedicated QA review post-install and Monitoring & Evaluation of outcomes.