The Scottish Fuel Poverty Advisory Panel wrote to Gillian Martin MSP, Minister for Energy and Environment, on 21 December 2023 to record its response to the Scottish Budget for 2024/25. The Panel said the Scottish Government intends to close the Fuel Insecurity Fund (FIF) and to make deep cuts to the Housing and Buildings Level 3 budget line from April 20241.
The letter states that it is currently hard to see where the budget leaves the Scottish Government's statutory fuel poverty targets1. The Panel noted that the First Minister had made a commitment to reducing fuel poverty on taking office in March 2023, and had backed it with a £10 million uplift to the Fuel Insecurity Fund1.
"The Panel is extremely disappointed to hear that the Scottish Government intends to close the Fuel Insecurity Fund (FIF), and make deep cuts to the Housing and Buildings Level 3 budget line from April 2024."
The Panel said the FIF has provided vital support for fuel poor people, described as amongst the most vulnerable living in Scotland, and that households are facing, in real terms, energy bills this winter comparable with those of last winter1. It added that FIF support also provides an opportunity for households to access other longer term support1. The Panel urged the Minister to consider whether any headroom exists to provide support through a slimmed down FIF in 2024/25, to avoid what it called a cliff edge for the people who currently rely on support delivered through the programmes currently sponsored through FIF1.
The letter acknowledges the fiscal challenges facing the Scottish Government and that tough choices have to be made1. No figure for the size of the cuts to the Housing and Buildings Level 3 budget line, and no figure for the value of the FIF in 2024/25, has been reported1.
Why it matters for households
The Fuel Insecurity Fund sits behind programmes that help households in Scotland who cannot afford to keep their heating on, and the Panel's letter links that support to wider help, including longer term energy efficiency measures1. Its planned closure from April 2024 would remove a route by which fuel poor households have been able to access both immediate support and other schemes1. The Housing and Buildings Level 3 budget line covers spending on housing and building energy efficiency, including programmes connected to the Energy Efficiency Standard for Social Housing in Scotland1. Cuts there affect the pace at which Scotland's housing stock is improved, which bears on how much a home depends on bought energy to stay warm. The Panel's letter does not set out what the changes mean for individual households, and no assessment of that has been reported1.
What happens next
The Panel said it will reflect over the Christmas period and provide a more detailed response in the new year1. The changes it describes are due to take effect from April 20241.
Sources1 cited
- Initial response on Scottish Budget 2024-2025 - Fuel Poverty Scotland, fuelpovertypanel.scot