The Scottish Government has called on UK Government ministers to urgently deliver a targeted energy bill discount to protect customers in greatest need and drive down high fuel poverty rates.
The final report of the Social Tariff Working Group - comprising energy suppliers,
consumer and fuel poverty groups and disabled people’s organisations - recommends
targeted energy bill support to address the issue of unaffordable bills, plus a move
beyond determining eligibility based on receipt of benefits.
The group concluded that support applied automatically to eligible households, using metrics based on a combination of household income, medical need and rurality would have a positive impact.
Acting Climate Action Minister Alasdair Allan said: “High energy prices remain the
single greatest driver of fuel poverty in Scotland, and we have taken various steps
- within the limits of our devolved powers - aimed at raising household incomes and
improving energy efficiency.
“We have reinstated the Winter Fuel Payment for pensioners; we have increased funding for Warmer Homes Scotland by £20 million, helping around 1,500 more households save on energy bills; and we have committed a further £20 million for the Scottish Welfare Fund to support the most vulnerable people.
“However, this is not enough to drive down stubbornly high fuel poverty rates and energy prices continue to rise. Targeted bill support is urgently needed to ensure that consumers are protected against high costs at source and can afford all their energy needs.”
He added: “We have worked very productively with energy providers and advice groups to come up with a deliverable scheme, and the final report demonstrates clear consensus on the way forward. However, the fundamental levers to make a difference are with the UK Government.
“Existing one-off flat rate rebates are insufficient and are not a long-term solution,
and the UK Government must urgently deliver a unit rate discount, with the level
of discount proportionate to need. The outputs from our group must act as a foundation
and mainstay of a revised strategy, providing a signal of intent and leadership by
the UK Government in tackling fuel poverty at source.”
The group considered fuel eligibility, consumer eligibility and data, level and form of support, and funding, as well as feedback from frontline advisers and campaigners.
Its conclusions differ from previous models which would have meant moving customers on to a different tariff, thereby removing them from the competitive market and from other means of saving money.
UK Government pressed to introduce discount for people struggling with energy bills
25 March 2025
