The Scottish Government established a social tariff working group in November 2024 and shared its final report and recommendations with the UK Government in March 2025, according to the Scottish Government's first fuel poverty periodic report, published on 1 April 20251. The group brought together stakeholders including suppliers and third sector organisations to co-design a deliverable social tariff policy2. Powers to implement a social tariff remain with the UK Government1.
The report states that the recommendations set out "targeted support in the form of a discount on energy bills, applied automatically and proportionate to need"2. The Scottish Government describes a social tariff mechanism as the best way to ensure energy consumers are protected against high costs and can afford all of their energy needs, and says it is having more constructive discussions with the new UK administration on delivering the policy1.
"The working group's final report and recommendations were sent to the UK Government in March 2025, demonstrating cross-sector consensus on the way forward: targeted support in the form of a discount on energy bills, applied automatically and proportionate to need."
The report covers the period from the publication of the Tackling Fuel Poverty in Scotland strategy on 23 December 2021 to 22 December 20242. It records that fuel poverty in Scotland rose from 31% in 2022 to 34% in 2023, while the share of homes rated EPC C or better increased from 45% in 2019 to 56% in 20232. The report attributes high fuel prices as the largest factor influencing fuel poverty rates in recent years2.
Other measures in the report include £1.3 billion allocated to Heat in Buildings schemes this parliamentary session, excluding 2025/26, with over £575 million committed to energy efficiency and clean projects1. Warmer Homes Scotland has invested around £289 million and helped over 40,000 households since the first scheme launched in 20151. The report also notes that in October 2024 a decision was taken to pause work on tenure-neutral housing standards and delay a planned 2025 consultation1.
Why it matters for households
A social tariff would be a discounted energy rate for households that need it, and the working group's recommendation is that it be applied automatically rather than claimed. For a household, that distinction matters: automatic application removes the need to apply, and the report says the discount should be proportionate to need2. The mechanism is aimed at the households the Scottish Government identifies as least able to afford the energy they need1.
The report is a statement of a recommendation, not a decision. The UK Government holds the powers to introduce a social tariff, and no implementation date, eligibility threshold or discount level has been reported1. Households in Scotland currently face the same GB-wide price cap and the same tariff market as the rest of Great Britain, so any social tariff would sit alongside existing bills support rather than replace it. The report also notes that the current wholesale electricity market is not fit for delivering net zero ambitions or tackling fuel poverty, and that the UK Government's Review of Electricity Market Arrangements must deliver reduced costs for consumers1.
What happens next
The report sets out that the Fuel Poverty Strategy will be revised at least every five years, with the first review taking place no later than 2026, and that reporting continues every three years with the final report published no later than 20421. The Scottish Fuel Poverty Advisory Panel's upcoming statutory report will consider progress over the past three years and inform next steps2. The Scottish Government says it will continue to work with the UK Government, Ofgem, suppliers and consumer organisations to advocate for delivery of the policy across Great Britain2. No response from the UK Government to the working group's report has been reported.