Minister considers fuel poverty definition change to help those most in need

The Scottish Government is to consider narrowing the definition of fuel poverty to target the most needy.

Published 24th Oct 2016

The Scottish Government is to consider narrowing the definition of fuel poverty to target the most needy.

Fuel poverty is currently defined as when more than 10% of household income is spent on heating, and it affects around 845,000 - or 35% - of homes in Scotland.

The level has remained steady since 2009, having more than doubled since 2003, following the setting of a Scottish Government target to eradicate the problem by November 2016.

The problem is more acute in rural areas, with more than half in fuel poverty and 23% in extreme fuel poverty - meaning they spend more than 20% of household income on fuel - compared to 9.5% of all households across Scotland.

A new report by the Scottish Fuel Poverty Strategic Working Group asks ministers to commission an independent academic review changing the definition of fuel poverty and setting a new target as the current one is “too broad”.

Housing Minister Kevin Stewart said it is clear the current definition is “unhelpful”, but he pledged not to “define away” the problem rather than solve it.

The report also recommends action to address all four drivers of fuel poverty - income, energy costs, energy performance, and how energy is used in the home.

The Rural Fuel Poverty Task Force also published a report on Monday setting out three guiding principles to help the Scottish Government deliver its fuel poverty and energy efficiency programmes.

Both reports set out more than 100 recommendations in total, including ensuring the Government's approach to tackling fuel poverty has equal impact in rural areas and that future programmes deal quickly with poorly performing homes occupied by the most needy.

Mr Stewart said: “Everyone should be able to heat their home and keep themselves and their families warm, therefore tackling and eradicating fuel poverty is vital and we must make sure action we are taking is making a difference to those that need it most.

“The advice is clear that the current definition is unhelpful in ensuring support is delivered to those who need it most. That is why I will take immediate and decisive action to take forward the recommendation on reviewing the definition of fuel poverty and set up the expert independent review called for.

“However I am clear that I will not define away the problem and the changes must be justified to ensure that those in need receive the most support.”

He said the Government is “committed” to tackling fuel poverty and plans to invest half a billion pounds in the next four years to address the problem.

Working group Chairman David Sigsworth said: “The report explores why current programmes have failed to eradicate fuel poverty and concludes that experience over many years has shown that energy efficiency improvements, whilst important, are not enough. Recent increases in underlying costs of fossil fuel, due to devaluation, will exacerbate this situation.

“The new policy should be firmly based on the principle of social justice and use new devolved social security powers to address well-known unfairness in current provisions.”