Call for UK Government to act on recommendations of Social Tariff
Working Group
Acting Minister for Climate Action today reiterated calls for
the UK Government to act on the recommendations of the Social
Tariff Working Group and deliver targeted support for energy
bills.
This comes as the Scottish Government publishes its first
three-year fuel poverty statutory periodic report in line with
the Fuel Poverty Act (2019) and coincides with Ofgem's latest
energy price cap rise coming into effect.
Dr Allan said:
“This report sets out progress on tackling fuel poverty within
the limitations of our devolved powers, including actions to
raise household incomes, reshape our social security system and
provide financial support through our heat in buildings schemes.
“It highlights two reasons why we have seen the fuel poverty
rates increase since 2021. Firstly, the volatile nature of
increases in energy prices has outweighed gains in energy
efficiency and household incomes, leading to increased rates of
both fuel poverty and extreme fuel poverty. Fuel poverty
would be going down were it not for the rise in fuel prices.
“Secondly, and crucially, that it is only the UK Government that
can and must act, using the fundamental policy and fiscal levers
at its disposal in relation to fuel prices, which can help
eradicate fuel poverty in Scotland.
“The Scottish Government, alongside energy companies, consumer
and fuel poverty groups and disabled people's organisations, has
made recommendations to the UK Government about how it could best
deliver targeted support with energy bills.
“It should introduce a targeted energy bill discount, with the
level of discount set in proportion to people's needs. That
discount should be applied automatically for eligible households;
and they should move away from eligibility being based simply on
receipt of benefits and replace this with a more sophisticated
set of criteria based on a combination of household income,
medical need and rurality.”
Background
Tackling Fuel Poverty in
Scotland: Periodic Report 2021-2024 - gov.scot
Energy: Social Tariff Working
Group - gov.scot
Scottish legislation describes a fuel poor household as one
where:
- more than 10% (20% for extreme fuel poverty) of net income is
required to pay for their reasonable fuel needs after housing
costs have been deducted
- the remaining household income is not enough to maintain an
acceptable standard of living, defined as at least 90% of the UK
Minimum Income Standard (MIS) once childcare costs and disability
or care benefits are deducted
