Home energy and fuel poverty

Fuel poverty

Fuel poverty strategy

Our fuel poverty strategy (2021) sets out 55 actions we are taking to tackle the four main drivers of fuel poverty, which are:  

• poor home energy efficiency 

• high energy costs 

• low household income 

• how energy is used in the home 

Progress towards meeting our fuel poverty targets is monitored by the statutory Scottish Fuel Poverty Advisory Panel.

Fuel poverty targets 

The statutory targets set by the The Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act are that by the end of 2040: 

• no more than 5% of households will be in fuel poverty 

• no more than 1% of households will be in extreme fuel poverty 

• the median fuel poverty gap of households in fuel poverty is no more than £250 in 2015 prices before adding inflation 

These targets must be achieved within each of the 32 local council areas and not just in Scotland as a whole. This is to ensure that no part of the country is left behind.  

There are also interim targets set for the same metrics for 2030 and 2035. However the interim targets only need to be met at a national level. 

Scottish Fuel Poverty Advisory Panel 

The statutory Scottish Fuel Poverty Advisory Panel was established in January 2022. Members appointments were announced at the end of 2021. The panel provide external scrutiny of our progress towards meeting the fuel poverty targets.  

We continue to work closely with the panel and other key stakeholders to progress delivery of our strategy towards our 2040 fuel poverty statutory targets. The panel also work alongside and collaborate with the Poverty and Inequality Commission to shape advice to Scottish Ministers. 

Fuel poverty definition 

Scottish legislation describes a fuel poor household as one where: 

• more than 10% (20% for extreme fuel poverty) of net income is required to pay for their reasonable fuel needs after housing costs have been deducted 

• the remaining household income is not enough to maintain an acceptable standard of living, defined as at least 90% of the UK Minimum Income Standard (MIS) once childcare costs and disability or care benefits are deducted 

The legislation provides for uplifts to be applied to the MIS for households rural and island communities to take into account the higher cost of living in these areas.