Rising number of households in fuel poverty, survey finds

More than a third of Scottish households are in fuel poverty, according to a study.

The Scottish House Condition Survey estimates 861,000 (34%) households were in fuel poverty in 2023 – up from 780,000 (31%) the year before.

Fuel poverty is defined as someone who spends more than 10% of their income on energy.

Some 491,000 households – accounting for 19.4% of the total – were estimated to be living in extreme fuel poverty in 2023, up from 465,000 (18.5%) in 2022.

Those spending more than 20% of their income on energy are defined as being in extreme fuel poverty.

The survey also shows 61% of dwellings in Scotland are now rated as EPC band C or higher – up 37 percentage points since 2010.

In the same period, the proportion of households in the lowest E, F or G bands has reduced from 27% to 8%.

More than a quarter (27%) of households failed the tolerable standard test in 2023, according to the Scottish Household Condition Survey.

The most common reason for failure was a lack of satisfactory equipment for detecting fires, with 562,000 dwellings failing this test.

The failure rate in the social housing sector was much higher at 38% but that was lower than in 2010 when it was 60%.

Another 26% of social homes also failed to meet energy-efficient standards.

Some 45% of Scottish households failed tests on the “disrepair of critical elements” of the home – down from 49% the year before. Sixteen per cent of these households require urgent repairs.

Debbie Horne, Scotland policy and public affairs manager at Independent Age, said: “The latest statistics released today show that 317,000 older households (37%) were in fuel poverty in Scotland in 2023, with one in four older households (25%) living in extreme fuel poverty.

“This is extremely concerning and shows a step-change will be required to meet Scotland’s fuel poverty targets.

“As well as this, almost half (49%) of people in later life live in homes with an EPC rating of band D or below.

“Cold homes are hazardous to health, especially for older people. Every day, our helpline hears from people in later life who are wearing a coat indoors, washing less and skipping meals.

“In a socially just and wealthy nation, no older person should be in fuel poverty.”

Ms Horne welcomed the Scottish Government’s call for a social tariff to be put in place, but she said “there is more that can be done”.

She added: “We’re calling on the Scottish Government to urgently create a strategy to tackle pensioner poverty.

“With 317,000 older households in fuel poverty, this can’t come soon enough.

“Today’s figures underscore the need for strategic action to lower bills by improving energy efficiency support and making sure the energy social security older people can access is sufficient.”

Housing minister Paul McLennan said: “We continue to support vulnerable households within our limited devolved powers, including through our energy efficiency delivery programmes – Warmer Homes Scotland and area-based schemes.

“We recently announced additional funding of £41 million to help tackle fuel poverty, including £20 million through the Scottish Welfare Fund and an increase of £20 million to the Warmer Homes Scotland scheme.

“This will help around 1,500 additional households to save an average of £400 per year each on their heating bills.”

Mr McLennan said the “levers to make a real difference” remain with the UK Government.

He added: “We continue to urge the UK Government to introduce a social tariff mechanism, which is the best way to ensure that energy consumers are protected against high costs and can afford all of their energy needs.

“We take the safety of tenants very seriously and are committed to tackling disrepair in housing, and ensuring good maintenance is given a high priority.

“We are working with local authorities and other housing providers to ensure people live in warm, dry and safe homes.

“The number of homes failing the Scottish Housing Quality Standard has reduced from 60% in 2010 to 38% in 2023.”

The UK Government has been approached for comment.