A range of leading energy and fuel poverty organisations are calling on the Scottish Government to act immediately in response to the ongoing rise in energy costs and the now anticipated 16% rise in the energy price cap come January.
The collective is calling for reinstatement of the Home Heating Support Fund, targeted support for rural households and increased investment to support retrofit.
An unacceptable 28.7% of households in Scotland already live in fuel poverty, with 14% of these in extreme fuel poverty and 19% trapped in energy debt. Families are entering a brutal winter with depleted financial resilience. Failing to provide more immediate, targeted support as the cap rises further will escalate the crisis, forcing a third of Scots to choose between freezing or falling into unpayable debt.
Cornwall Insight forecasts a further rise in Ofgem’s price cap by 16% in January, up from £1,723 in October to £1,999 a year for a household with typical energy use. This would be an increase of £276, and the highest level since March 2023.
Rural and island communities are disproportionately affected by fuel poverty, affecting householders such as Laura (name changed for anonymity).
Laura lives in a small village in the Highlands, and her underlying health conditions – including asthma and fibromyalgia – make her particularly vulnerable to the cold. Laura relies on oil for hot water, the price of which has doubled in the last few months. Her latest tank refill was around £900, compared to around £400 previously.
Despite receiving support from local support organisations to access the Scottish Government’s Emergency Heating Fund, with prices expected to increase further, the upcoming winter months will continue to be difficult without additional support.
Twenty organisations including Changeworks, Energy Agency, Scottish Federation of Housing Associations, The Fuel Poverty Alliance, Energy Action Scotland, Scarf, Wise Group, and others have come together with a joint letter addressed to Stephen Gethins, the Minister for Europe, External Affairs and Energy of Scotland.
Read the full letter here
Josiah Lockhart, Chief Executive of social enterprise Changeworks, said: “People across Scotland urgently need support. Energy debt is at record levels, and more people than ever will fall into further into fuel poverty over the coming months unless the Government takes urgent action.
“While we welcome the extension of the Scottish Emergency Heating Oil Scheme and the UK Government’s announcement last week to cut VAT on electricity, reform energy levies and remove gas standing charges, this support is not going to provide sufficient relief and support to the thousands that need it now. That’s why we’re collectively calling for further, faster action.”
Sean Duffy, Chief Executive of the Wise Group, said: “Fuel poverty is distinct from poverty, but it cannot be tackled in isolation from it. Our mentors see energy debt alongside poor health, financial pressures and housing difficulties every day. Emergency funding is essential, but Scotland cannot keep paying to manage the same crisis.
“Energy prices may be largely outside the Scottish Government’s control, but how we connect housing, health, social security and energy support is not. We need to measure success by whether households become more stable and stay out of crisis, not simply how much support we deliver.”
The collective is asking the Scottish Government to set out, as a matter of urgency, what additional measures it will take to mitigate the impact of the price cap rise, maximise access to financial assistance and energy advice, and ensure that support reaches households quickly.