920,000 households hit by fuel poverty, Scottish Government modelling shows

A “staggering” 920,000 households in Scotland are estimated to be suffering from fuel poverty, a report from the Scottish Government has revealed.

The data was released as advice charities pleaded with the Government to provide them with “better, longer term, more secure funding” as soaring costs mean demand for help has “increased massively”.

A report published after an energy summit convened by former first minister Nicola Sturgeon found more people were “seeking urgent advice on affordability”, with some calling for help because they were “unable to contact their energy suppliers directly due to long call waiting times”.

The Scottish Energy Insights and Coordination Group (SEIC) said: “These circumstances are exacerbating pressures on both advice agencies and individual advisers.”

Modelling work in a separate report published by the Scottish Government revealed almost two-fifths (37%) of households – an estimated 920,000 – were suffering from fuel poverty in April.

The same research estimated 720,000 households (29%) were in extreme fuel poverty.

People who need to spend more than 10% of household income on energy are classed as being in fuel poverty, with those spending 20% in extreme fuel poverty.

Scottish Liberal Democrat MSP Liam McArthur said: “These figures show that a staggering number of people are estimated to be fuel poor.”

He said a “national emergency insulation programme all across the country” should focus on improving the homes that are hardest to heat.

Advice Direct Scotland revealed it received an average of 370 calls a day in December from people seeking help with energy bills, up from 80 a day in the same month of 2021.

Chief executive Andrew Bartlett said: “As the country’s national energy advice service, we have witnessed a sharp rise in the daily number of calls seeking support.

“We continue to encourage anyone who is finding it difficult to cope with their energy bills to contact our advisors, and it’s important to recognise that many people are still struggling despite the warmer weather.”

He paid tribute to the “expert call handlers” who had “helped so many households across Scotland with their energy worries”.

Citizens Advice Scotland warned that a failure to invest properly in advice services could “hurt the poorest and hold our economy back”.

Chief executive Derek Mitchell said it was “facing record demand” for help, with advisers often dealing with “complex cases”.

It provided one-to-one help to 174,500 people last year, and Mr Mitchell said: “Time and time again people are coming into Citizens Advice bureaux with an energy issue and ultimately need a food bank referral or crisis support.

“There is a clear and direct line between high energy bills and empty kitchen cupboards.

“Our worry is we see headlines about the price cap or inflation falling and policymakers may think this crisis is on its way to being over – it’s not.

“People, particularly the poorest, will be feeling the impact of this for years to come.”

He told ministers that “well-funded advice can make a massive difference”, adding: “Our capacity to help could be so much greater with better, longer term, more secure funding.”

A Scottish Government spokesperson said: “The energy price crisis has not gone away. Average bills still remain twice what they were two years ago and our latest estimate is that around a third of all households in Scotland – 850,000 – will still be living in fuel poverty, with 69% of those households in extreme fuel poverty.

“This is an unacceptable situation and we continue to call on the UK Government to do more with the fiscal and policy levers available to them to help the fuel poor.”

The spokesperson added: “Although energy is a reserved policy area, the Scottish Government is continuing to do everything we can within our limited powers to support as many people as possible with their energy bills.

“This includes trebling our Fuel Insecurity Fund to £30 million this year to provide practical help to those who are most at risk of self-rationing or self-disconnecting their energy use.

“With the Ofgem price cap falling below the energy price guarantee from July, the UK Government now has additional means and opportunity to provide targeted support for those that need it the most.

“We again urge the UK Government to provide support for vulnerable households who continue to struggle with their energy costs, and to take the necessary steps – which only it can take – to ensure that households never experience this situation again.

“We recognise that this is a decisive decade to make our homes warmer, greener and cheaper to heat, which is why we have been working to support and speed up the delivery of zero and low emission heating systems and energy efficiency measures such as insulation – backed by Scottish Government funding of at least £1.8 billion over the course of this parliament.

“We are committed to consulting on proposals for a Heat in Buildings Bill, seeking views on our plans for regulation to accelerate green heating installation and higher energy efficiency standards in Scotland’s homes and buildings.”