The Scottish Government established a social tariff working group in November 2024, bringing together stakeholders to co-design a deliverable policy, according to its first fuel poverty periodic report covering December 2021 to December 20241. The group's final report and recommendations were shared with the UK Government in March 20251. The report states that the powers to implement a social tariff remain with the UK Government1.
The report sets out what the working group recommended. The Acting Minister for Climate Action, Dr Alasdair Allan, wrote that the recommendations demonstrate "cross-sector consensus on the way forward: targeted support in the form of a discount on energy bills, applied automatically and proportionate to need"2. The group included suppliers and third sector organisations2.
"We established a social tariff working group in November 2024, bringing together stakeholders to co-design a deliverable policy"
The report places the working group alongside wider activity on energy prices. It records that in July 2024 the UK Government restricted Winter Fuel Payment entitlement to those receiving Pension Credit and other means-tested benefits from that winter, and that in November 2024 the Scottish Government announced £41 million in additional support for people struggling with energy costs in winter 2024/20252. The Scottish Government also convened two Energy Summits in 2022 involving suppliers and third sector organisations2.
On housing standards, the report says a decision was taken in October 2024 to pause work on tenure-neutral housing standards and to delay a planned 2025 public consultation1. The New Build Heat Standard was implemented through building regulations in April 2024, with further amendment in January 20251. A consultation on proposals for a Heat in Buildings Bill, including a minimum energy efficiency standard for privately owned homes and proposals to prohibit polluting heating systems such as gas boilers in privately owned and non-domestic properties after 2045, closed on 8 March 20241. The report says responses were still being considered at the time of publication1.
The report gives figures for energy efficiency schemes. Since the first Warmer Homes Scotland scheme launched in 2015, it has invested around £289 million and helped over 40,000 households1. The Scottish Government has allocated £1.3 billion through Heat in Buildings schemes this parliamentary session, excluding 2025/26, committing spend of over £575 million for energy efficiency and clean projects1. As of February 2025, around 46,887 households had received improvements, with 2,723 Scottish households having benefited from the Great British Insulation Scheme, 6 per cent of those participating2.
| Measure | Figure | Date given |
|---|---|---|
| Warmer Homes Scotland investment | around £289 million | since 20151 |
| Households helped by Warmer Homes Scotland | over 40,000 | since 20151 |
| Heat in Buildings schemes allocation | £1.3 billion | this parliamentary session, excluding 2025/261 |
| Energy efficiency and clean projects spend | over £575 million | this parliamentary session1 |
| Households receiving improvements | around 46,887 | as of February 20252 |
| Scottish households benefiting from GBIS | 2,723 (6 per cent of participants) | as of February 20252 |
The report also records fuel poverty rates. The 2023 Scottish House Condition Survey estimated 34 per cent of households in Scotland were in fuel poverty, up from 31 per cent in 2022 and 24.6 per cent in 20192. The share of dwellings rated EPC C or higher rose from 45 per cent in 2019 to 56 per cent in 20232. The report states that high fuel prices have been the largest factor influencing fuel poverty rates in recent years2.
Why it matters for households
A social tariff is a discounted energy rate for households that need it. The report describes the working group's proposal as a discount applied automatically and proportionate to need2. Automatic application matters because it removes the need for a household to apply and be assessed separately. The report states that the powers to implement a social tariff sit with the UK Government, not the Scottish Government, so the recommendations sent in March 2025 are a request rather than a decision1. No implementation date, eligibility threshold or discount level has been reported.
For a household's energy independence, the report's figures describe the wider context in which any social tariff would sit. Energy efficiency improvements reduce the amount of energy a home needs, while a social tariff would reduce the price paid per unit. The report records both rising energy efficiency and rising fuel poverty over the same period, with fuel poverty at 34 per cent in 2023 against 24.6 per cent in 20192. It attributes this mainly to high fuel prices2.
What happens next
The report sets out several dated commitments. The Fuel Poverty Strategy will be reviewed at least every five years, with the first review taking place no later than 20261. The next periodic report is due every three years, with the final report published no later than 20421. Refreshed Local Housing Strategy guidance will be published in 20251. An annual progress report on child poverty for 2024-25 will be published by the end of June 20251. Regulations following the EPC Reform consultation response of 21 January 2025 are planned to be laid later in 2025 and brought into force in 20262. The Scottish Government has said it will introduce regulations requiring private rented sector properties to meet a minimum standard equivalent to EPC C, where technically feasible and cost-effective, by 20281.