Scotland’s fuel poverty rate rose to 34% in 2023, Scottish House Condition Survey finds

Scotland's fuel poverty rate rose to 34% in 2023, Scottish House Condition Survey finds

More than a third of all households in Scotland are estimated to have spent at least 10% of their incomes after housing costs on keeping their homes warm, according to the latest Scottish House Condition Survey (SHCS) for 2023.

The Chief Statistician has today released figures on fuel poverty, energy efficiency, the condition of housing and other key descriptors of the occupied housing stock in Scotland. 

In 2023, an estimated 34% (around 861,000 households) of all households were in fuel poverty. This is higher than the 2022 fuel poverty rate of 31% (around 780,000 households). In addition, 19.4% (or 491,000 households of the 861,000 households in fuel poverty) were living in extreme fuel poverty in 2023 which is similar to the 18.5% (465,000 households) in 2022.

In 2023, 56% of Scottish homes were rated as EPC band C or better under SAP 2012. This is an increase of around 3 percentage points compared to 52% in 2022.

Under SAP 2009, which allows comparisons over a longer period, over half of dwellings (61%) were rated C or better, up 37 percentage points since 2010. In the same period, the proportion of properties in the lowest EPC bands (E, F or G) has reduced from 27% in 2010 to 8% in 2023.

In 2023, 27% of all dwellings failed the tolerable standard similar to 2022 (29%). The most common reason for failure of the tolerable standard was under the satisfactory equipment for detecting and warning in the event of fire criteria which 562,000 dwellings failed.

The Scottish Housing Quality Standard (SHQS) failure rate in the social sector was 38%. This has fallen from 60% in 2010. Failures of the Energy Efficient criterion were the biggest drivers of failures overall for the social sector. In 2023, 26% of social sector properties did not meet the Energy Efficient criterion

Disrepair to critical elements, which are central to weather-tightness, structural stability and preventing deterioration of the property, stood at 45% in 2023. Less than half of these (16% of all dwellings) required urgent disrepair to critical elements and just 2% had extensive disrepair (covering at least a fifth of the element area) to critical elements.

Overall, this is an improvement of 3 percentage points compared to 2022, when 49% of dwellings had disrepair to critical elements. The 2023 rate is the lowest since 2012.

Housing minister Paul McLennan said the Scottish Government is working within its means to provide support to those who need it.

“We continue to support vulnerable households within our limited devolved powers, including through our energy efficiency delivery programmes – Warmer Homes Scotland and Area Based Schemes,” Mr McLennan said.

“We recently announced additional funding of £41 million to help tackle fuel poverty, including £20m through the Scottish Welfare Fund and an increase of £20m to the Warmer Homes Scotland scheme. This will help around 1,500 additional households to save an average of £400 per year each on their heating bills.

“However, the levers to make a real difference remain with the UK Government. We continue to urge the UK Government to introduce a social tariff mechanism which is the best way to ensure that energy consumers are protected against high costs and can afford all of their energy needs.

“We take the safety of tenants very seriously and are committed to tackling disrepair in housing, and ensuring good maintenance is given a high priority. We are working with local authorities and other housing providers to ensure people live in warm, dry and safe homes. The number of homes failing the Scottish Housing Quality Standard has reduced from 60% in 2010 to 38% in 2023.”

Matt Cole, chair of the Scottish Fuel Poverty Advisory Panel, said the results of the survey are extremely disappointing.

He said: “The latest findings from the Scottish House Condition Survey 2023 show that fuel poverty rates have risen to 34% from 31% in 2022, with extreme fuel poverty rates rising to 19.4% in 2023 from 18.5% in 2022. To put that into context, in just a year the number of homes in fuel poverty has risen from 780,000 to 861,000 - that is an additional 81,000 households where people are often facing tough choices about whether to heat their home or feed their families.

“This rise in the fuel poverty rates is disappointing but not unexpected. Since the completion of the survey energy prices have increased and financial support to households for energy costs has reduced. Energy bills, the main driver of fuel poverty, remain around 29% higher than their winter 2021/2022 levels.

“There has been improvement in the number of Scottish homes in EPC band C or better – rising to 56% in 2023 from 52% in 2022, but the increase in energy bills will erode some of the benefits of improved housing quality.

“Fuel poverty is not inevitable. Scotland’s Fuel Poverty Act and the 2040 target to effectively eradicate fuel poverty shows the Scottish Government’s ambition to find a solution but the 2023 fuel poverty estimates show the scale of the challenge and how very far there is still to go to meet it.

“We recognise that the challenge of tackling fuel poverty has been getting harder, and we are working with Scottish Ministers and with those who can drive the change needed, from the UK Government to Ofgem, advice agencies, the energy sector and those with lived experience. Together we are hoping to achieve the long-term goal that everyone has access to an energy efficient home which is safe, warm and affordable to heat.”

Independent Age warned that the “extremely concerning” figures show a step change will be required to meet Scotland’s fuel poverty targets.

Debbie Horne, Scotland policy and public affairs manager, said: “The latest statistics released today show that 317,000 older households (37%) were in fuel poverty in Scotland in 2023, with 1 in 4 older households (25%) living in extreme fuel poverty. This is extremely concerning and shows a step change will be required to meet Scotland’s fuel poverty targets.

“As well as this, almost half (49%) of people in later life live in homes with an EPC rating of band D or below. Cold homes are hazardous to health, especially for older people. Every day, our helpline hears from people in later life who are wearing a coat indoors, washing less and skipping meals. In a socially just and wealthy nation no older person should be in fuel poverty.

“While it is welcome that the Scottish Government is working with energy companies to encourage them to put in place social tariffs for financially vulnerable customers, there is more that can be done.

“We’re calling on the Scottish Government to urgently create a strategy to tackle pensioner poverty.  With 317,000 older households in fuel poverty, this can’t come soon enough. Today’s figures underscore the need for strategic action to lower bills by improving energy efficiency support and making sure the energy social security older people can access is sufficient.”

Katherine Crawford, chief executive at Age Scotland, added: “It’s absolutely shocking that a quarter of older households are living in extreme fuel poverty, even more so when you consider this was measured when the universal Winter Fuel Payment was still in place.

“Year on year, older people have emerged as the group most impacted by fuel poverty, but there has been little to no activity from government to address this.

“With no financial support in place this winter for the majority of these older people and the energy price cap rising regularly, we have huge concerns about what these figures might look like next year. Older people are also more likely to live in older, less energy efficient homes, further exacerbating fuel poverty and highlighting the need to increase and speed up access to support schemes.

“The Scottish Government must redouble efforts to tackle fuel poverty and accelerate efforts to improve energy efficient homes, with a real focus on older households now that they have more control over key social security payments.

“Next winter will see the return of a universal Pension Age Winter Heating Payment but, at £100, it is impossible to think this will be enough for those on low and modest incomes who narrowly fall short of Pension Credit criteria when we are already seeing this scale of fuel poverty.

“As hard as it will be, the Scottish Government need to think about uprating this payment to something more reasonable or risk leaving an increasing number of older people in the cold.”

Friends of the Earth Scotland’s oil and gas campaigner Freya Aitchison said: “These shocking figures represent the scale of the harm caused by an energy system controlled by greedy fossil fuel giants. Cold homes are killing people and ruining lives.

“As fossil fuel companies were extracting tens of billions in profits from the price crisis, tens of thousands more households in Scotland were pushed into fuel poverty.

“SSE wants to burn expensive gas to generate electricity at Peterhead for another 35 years, trapping people in the same rigged system that benefits them and is dictated by volatile gas markets far beyond our control.

“The Scottish Government has been far too slow to deliver the improvements to people’s homes which will improve health, cut bills and cut emissions.

“We need a rapid and fair transition to publicly owned renewable energy, which is already cheaper than fossil fuels, because the longer we are delayed, the more our energy bills skyrocket and the greater danger we are all in.”

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