What is fuel poverty?
A person is living in fuel poverty if, in order to maintain a satisfactory heating regime, they would be required to spend more than 10 per cent of their household income (including Housing Benefit or Income Support for Mortgage Interest) on all household fuel use.
Causes of fuel poverty
Three factors influence whether a household is in fuel poverty.
- Low household income. The costs of heating a property form a greater proportion of total income for those on low incomes.
- Fuel costs. Higher prices reduce the affordability of fuel. Prices of different types of fuels can vary considerably, and the availability of different fuels in different areas, and of different types of heating systems, can affect the ability of consumers to exercise choice.
- Energy efficiency. The thermal quality of the building and the efficiency of the heating source determine the amount of energy that must be purchased to heat the home adequately.
The Scottish Government will ensure that by November 2016, so far as is reasonably practicable, people are not living in fuel poverty in Scotland.
How is the Scottish Government addressing fuel poverty?
Two fuel poverty programmes currently operate: the Central Heating and Warm Deal programmes. Following an announcement by the Cabinet Secretary in November 2008, these will be replaced from April 2009 by the Energy Assistance Package, which will provide an holistic approach to fuel poverty, offering help with income maximisation, home energy efficiency improvements and advice on energy tariffs.
The 2002 fuel poverty statement provides more detail on the full range of activities being carried out to eliminate fuel poverty. A Review of Fuel Poverty and progress towards the 2016 target was published on 22 May 2008. It concluded that the Central Heating and Warm Deal programmes need reform and highlighted how under the current devolution settlement the Scottish Government has direct control over only one of the key factors determining fuel poverty, that is energy efficiency of the home.
The Scottish Fuel Poverty Forum was re-established in May 2008 to advise on the future of fuel poverty policy in Scotland. It is a partnership of organisations with experience in the field who advise on taking forward this work. Practitioners in advice agencies may find the Fuel Poverty: An Advisers Guide to referral networks leaflet useful.
The Forum published its report and recommendations in October 2008.
Renewables Pilot
The Scottish Government ran a £1m renewables pilot between 2006 and 2008 to look at the scope for including renewable technologies in the fuel poverty programmes. Technologies included were heat pumps (ground source and air source), automated biomass heaters, micro wind and solar water heaters.
The key findings from the pilot were published on 19 November. Acting on these and recommendations from the Scottish Fuel Poverty Forum, air source heat pumps will be included in fuel poverty programmes from April 2009.
Last Updated 21 November 2008