Highlands fuel poverty ‘unacceptably high’, Changeworks research finds

The report shows there have been major opportunities missed to improve public health, support local economies and cut carbon at a time when fuel poverty is unacceptably high and energy prices set to continue to increase.

The research, which revisits an earlier report published by Changeworks, finds that 29% of households in Scotland were in fuel poverty in 2024, with 14% in extreme fuel poverty, with rural communities continuing to face the highest costs and greatest challenges.

Changeworks’ latest analysis shows that while energy prices have fluctuated, the underlying drivers of fuel poverty in rural areas remain largely unchanged. These include higher reliance on expensive fuels, energy-inefficient housing and structural barriers to delivery.

In the Highlands, these pressures are compounded by older, more exposed homes and limited access to cheaper heating options. 57% of rural households are off the gas grid, leaving them more vulnerable to volatile fuel prices and higher running costs.

The research highlights the wide-ranging benefits of investing in home energy efficiency and low carbon heating. As well as lowering bills, retrofit can improve physical and mental health, reduce pressure on public services, create skilled local jobs and strengthen rural economies, while helping Scotland meet its climate targets.

Yet many of the recommendations made in Changeworks’ original 2023 ‘A Perfect Storm: Fuel Poverty in Rural Scotland’ report have seen little or no progress, with key barriers - such as short-term funding, supply chain capacity and energy pricing - still limiting action on the ground.

Despite this, projects like the Highland Energy Community Partnership (HECP), co-ordinated by Changeworks with local partners and funded by The National Lottery Community Fund, are already working in communities across the Highlands to help people reduce bills, improve their homes and access support. The project aims to support hundreds of households with advice and home improvements, and help people navigate funding and find trusted installers.

Mhairi MacSween, Highlands Energy Community partnership manager, said: “We know what works in rural Scotland. Projects like the Highland Energy Community Partnership show how local, place-based support can help households access advice, upgrade their homes and reduce bills. But without sustained investment and policies that reflect the realities of rural communities, progress will remain too slow.”

Dr Ian Cochran, head of consultancy at Changeworks, said: “Fuel poverty remains unacceptably high, particularly in rural Scotland, and the underlying issues have not been addressed. Tackling this isn’t just about energy bills, it’s about improving health, supporting jobs and delivering a fair transition to net zero. We need coordinated action now to turn that potential into reality.”

Changeworks is calling on the Scottish and UK Governments to prioritise reforms to electricity pricing, expand support for off-gas households and commit to long-term investment in retrofit programmes to deliver lasting change.