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Chamber and committees

Question reference: S6W-25237

  • Asked by: Collette Stevenson, MSP for East Kilbride, Scottish National Party
  • Date lodged: 5 February 2024
  • Current status: Answered by Gillian Martin on 20 February 2024

Question

To ask the Scottish Government what its response is, regarding the impact on households in Scotland, to reported data from Outra stating that the UK energy price cap increase has led to a 12.2% rise in fuel poverty.


Answer

Our own estimates show that with Ofgem’s price cap set at £1,928 for an average household until March this year, 840,000 of Scottish households are in fuel poverty – 34% of all households. This is a 2% increase – an extra 20,000 households approximately – in the number of fuel poor households from estimates for October to December 2023. These estimates are based on Scotland’s statutory definition of fuel poverty, whereas the Outra figure is likely produced under a different definition.

According to the Scottish fuel poverty definition, a household is in fuel poverty if:

  • in order to maintain a satisfactory heating regime, total fuel costs necessary for the home are more than 10% of the household's adjusted net income (i.e. after housing costs), and more than 20% in the case of extreme fuel poverty; and
  • if, after deducting those fuel costs, benefits received for a care need or disability and childcare costs, the household's remaining adjusted net income is insufficient to maintain an acceptable standard of living.

Subsidised support for the majority of consumers ended last year, but thousands of households continue to struggle to balance high energy costs along with unmanageable legacy debt. This is why we continue to call for urgent, targeted support including the introduction of a social tariff mechanism for those who need it the most. It is disappointing that our calls, consistent with those from the industry and third sector, have been ignored.

I urge anybody struggling with their energy bills to contact Advice Direct Scotland and Citizens Advice Scotland who will be able to help in the first instance.