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.”