According to January’s Scottish House Condition Survey, 34% of households (approximately 861,000) were estimated to be in fuel poverty in 2023, up from 31% (around 780,000 households) in 2022. Extreme fuel poverty also rose to 19.4% in 2023 from 18.5% the previous year. ​

​The ‘Tackling Fuel Poverty in Scotland: Periodic Report 2021-2024’ looks at the four key drivers of fuel poverty and the actions undertaken to address them.

1. Energy Efficiency of Homes

Poor insulation and inefficient heating systems have led to high energy costs, while many homes, especially in rural and older properties, do not meet high energy efficiency standards.

To help address this, the Warmer Homes Scotland Scheme has provided free or subsidised insulation, heating upgrades, and energy efficiency improvements for low-income households; Energy Efficient Scotland Programmes aim to improve EPC ratings of homes through grants, retrofitting schemes, and regulatory measures, while new building standards aim to ensure new homes meet stricter energy efficiency requirements.

2. Household Income

Low wages, insecure employment, and reliance on benefits leave many households unable to afford energy costs, the report found. In addition, the rising cost of living has exacerbated financial pressures.

Actions taken on this front include an expansion of the Scottish Welfare Fund to allocate an additional £20 million to help struggling households; the Fuel Insecurity Fund, which provides direct financial support to households at risk of fuel poverty, and continued advocacy for UK-wide reforms to enhance social security measures and introduce fairer energy pricing structures.

3. Energy Prices

To combat high and volatile energy prices disproportionately impacting low-income, rural and off-grid households, the Scottish Government has called for a social tariff, encouraged local renewable energy initiatives to reduce dependency on expensive national grid supply and engaged with Ofgem and the UK Government to address unfair pricing models.

4. Energy Use & Consumption

According to the report, many households lack awareness or the means to manage energy consumption efficiently. Some vulnerable groups, including elderly and disabled individuals, require higher energy use for health reasons.

As a result, Home Energy Scotland has offered free guidance on reducing energy consumption and accessing financial support, while the government has also encouraged the use of smart meters to monitor and control energy use more effectively.

The Warm Homes Prescription initiative has also been expanded to ensure those with medical needs receive adequate heating support.

In the report’s foreword, acting minister for climate action Alasdair Allan wote: “Tackling fuel poverty requires a long-term sustained effort – I am clear that no Government can do this alone – this requires a whole sector approach with suppliers, consumers, the regulator and most importantly, the UK Government to use the necessary and fundamental policy and fiscal levers towards reducing fuel poverty.

“The Scottish Government remains committed to tackling fuel poverty in Scotland, especially when our country has an enormous potential for renewable energy, which can and should benefit households and communities across the country through lower energy bills. I look forward to receipt of the Scottish Fuel Poverty Advisory Panel’s upcoming statutory report, which will consider the progress made by the Scottish Government over the past 3 years and help to inform our next steps.”

Gillian Campbell, director of Existing Homes Alliance, said: “The minister is correct to say that the high cost of energy is the main driver of fuel poverty in Scotland and we echo his call for the UK Government to use its levers to address this as a matter of urgency. However, it remains essential that the Scottish Government makes full use of the levers at its disposal to reduce how much energy people need to use to heat their homes.

“We know that Warmer Homes Scotland and the Area-based Schemes are transforming homes and lives across the country, but with the right funding and support they could be doing so much more. The Minister said that they will build on the success of these programmes and we look forward to hearing what that means in practice.

“We also know that reliance on volatile fossil fuel makes us more vulnerable to rising prices – it’s essential that we begin the process of moving away from that reliance, by switching to clean, renewables-based heating to ensure long-term energy security and affordable heating for all.”

Citizens Advice Scotland (CAS) said fuel poverty remains a blight on communities across Scotland, especially in remote and rural locations.

“Unaffordable energy prices stop people from doing essential things like heating their home, cooking a meal and turning on the lights,” CAS senior policy officer Dr Matthew Lee added. “Advisers across the Citizens advice network in Scotland see the harmful effects of fuel poverty on people’s lives every day. Last winter alone, CABs in Scotland gave energy advice to more than 9,000 people.

“We need urgent and targeted action to tackle fuel poverty, including a social tariff that gives a discount on energy bills to people living on low incomes and a debt relief scheme to help people trapped by energy debt. These are the kind of bold and decisive measures required to deal with rising energy bills and soaring levels of energy debt.”