Social Tariff can deliver “transformational impact” on fuel
poverty levels
Housing Secretary Màiri McAllan has called for urgent action from
the UK Government on energy bills, as new modelling finds that
around 660,000 households could see estimated fuel bills cut by
an average of £700 under Scottish Government proposals for
targeted discounts.
New scenario modelling on a targeted unit rate discount and
targeted removal of standing charges – or Social Tariff –
published today by the Scottish Government, suggest it could lift
202,000 households in Scotland out of extreme fuel poverty and
reduce the number of households in fuel poverty entirely by
around 135,000, with a UK Government investment of £475 million
per annum.
Today's modelling builds on the work undertaken by the Social
Tariff Working Group – comprising energy suppliers, consumer and
fuel poverty groups and disabled people's organisations.
Màiri McAllan said:
“In an energy-rich nation like Scotland, no one should be
struggling to pay their energy bills – yet far too many people
are struggling with bills still higher than they were this time
last year.
“The UK Government promised to cut people's bills by £300 –
instead bills have risen by almost £200. We must see action
from the UK Government now.
“Today's evidence shows that under our proposals for targeted
discounts, around 660,000 households in Scotland would see their
estimated fuel bills go down by an average of £700 – with more
than around 135,000 households lifted out of fuel poverty and
more than 200,000 lifted out of extreme fuel poverty.
“We have worked closely with energy providers, consumer groups
and others to develop these concrete, deliverable plans which
would have a transformational impact on people in Scotland during
the cost of living crisis.
“The UK Government is not going to reduce fuel poverty without
investment – but set against the impact of fuel poverty, which
research suggests costs the NHS across in England alone £1.4
billion per year, this investment is not just the right thing to
do, but is a smart, preventative spend.
“High energy bills are causing misery for people throughout
Scotland and I am calling for the UK Government to use the powers
at their disposal and take action to support people now.
“UK ministers have been quick to tell us what they will not do to
cut energy bills and reduce fuel poverty – they must now tell us
what they will do.”
Frazer Scott, Chief Executive Officer, Energy Action Scotland
said:
“It is abundantly clear from the report published by the Scottish
Government that the introduction of a social tariff or social
discount would have a transformational impact on low-income fuel
poor households and people with serious health conditions or
disabilities.
“The current approach of a wholly inadequate payment £150 through
the Warm Home Discount provided through energy suppliers is
simply no longer fit for purpose. Energy Action Scotland urges
the UK Government to introduce a social tariff or social discount
of the type modelled in this report and provide meaningful
support for households unable to heat and power their homes.”
David Hilferty, Director of Impact, Citizens Advice Scotland
said:
“Energy is one of our fastest growing advice areas across the CAB
network - up 150% compared to the period before the pandemic and
the twin cost of living and energy crises. A social tariff
for energy is no longer a nice-to-have – it is now an essential
and imperative need.”
Background
Scenario modelling on
Social Energy Tariff Proposal
Based on Scottish Household Condition Survey data, eligible
households would receive on average a £1,000 reduction on their
modelled fuel bill. As this estimate is based on modelled
fuel bills to meet the heating regimes set out in the Fuel
Poverty definition in Scotland, we have also provided a
calibrated cost based on DESNZ average domestic consumption data.
For the calibrated cost, the average fuel bill reduction per
household is £700 and would require a UK Government investment of
around £475 million per annum.
Social Tariff Working
Group
