Tackling fuel poverty in Scotland: a strategic approach

Annex A – Action Plan

Action Plan

Understanding Fuel Poverty

Theme: Research

1. Working with the Scottish Fuel Poverty Advisory Panel, we will explore the opportunities to carry out further lived experience research and build on our existing evidence base

Theme: Consultation

2. We will consult with people with lived experience of fuel poverty when making any new regulations under the Fuel Poverty Act

Making Homes Warmer and Cheaper to Heat

Theme: Heat in Buildings programmes

3. We will continue to invest in Warmer Homes Scotland and our Area Based Schemes to maximise the number of households in fuel poverty achieving a level of energy efficiency equivalent to EPC C by 2030 and EPC B by 2040

4. Over the next five years, we will deliver an increasing number of 'whole house' retrofits to fuel poor households and will adopt a 'zero emissions first' approach

5. We will explore how to better identify potential projects and increase take up by fuel poor households for our Area Based Schemes

6. We will continue to provide funded support to households in fuel poverty, helping them to install energy efficiency measures through Warmer Homes Scotland, the scheme that replaces it, and our Area Based Schemes

7. Those in fuel poverty will continue to be supported as one of the key priorities within appropriate schemes of our Heat in Buildings programme

8. In 2022, we will undertake research with members of the Gypsy/Traveller community who have lived experience of fuel poverty to better understand how we can reflect their needs in Warmer Homes Scotland, the scheme that replaces it, and our Area Based Schemes

9. We will ensure that the replacement scheme for Warmer Homes Scotland continues to provide support to those fuel poor households who face the greatest health risks of staying in a cold home

10. We will continue to provide enabling measures, such as assistance with loft clearances, asbestos removal, the installation of fuel storage tanks and the removal of failed cavity wall insulation, to help facilitate energy efficiency improvements

11. Working with the Scottish Fuel Poverty Advisory Panel, we will seek to ensure that eligibility criteria for our Area Based Schemes and the new scheme to replace Warmer Homes Scotland, are aligned with the updated fuel poverty definition and continue to target assistance to those that need it most

12. We will explore the development of a fuel poverty assessment tool

13. We will apply the learnings from projects funded by the Gypsy/Traveller Accommodation Fund or undertaken as part of ABS Special Projects that seek to improve the energy efficiency of Gypsy/Traveller accommodation to Warmer Homes Scotland, the scheme that replaces it, and our Area Based Schemes

14. We will continue to monitor whether our investment helps households to maintain an adequate indoor temperature and will supplement this with increased qualitative feedback from the households we support

15. We will seek to identify Social Housing Net Zero Fund projects which have been successful in reducing energy bills for those in fuel poverty and share the learning with the wider social housing sector as well as applying it to Warmer Homes Scotland, the scheme that replaces it, and our Area Based Schemes

Theme: Regulations and standards

16. We will work with Historic Environment Scotland to consider what further specific provisions or exemptions may be needed within regulations in meeting requirements for decarbonisation of their heat supply and reducing their demand for heat

17. We will consult on a regulatory approach for mixed-tenure buildings which would see them required to reach a good level of energy efficiency, equivalent to EPC C, where technically feasible and cost effective, and install a zero emissions heating supply

18. We will introduce regulations requiring private rented sector properties to meet a minimum standard equivalent to EPC C, where technically feasible and cost-effective, by 2028

19. We will regulate for all buildings across all tenures to achieve a good level of energy efficiency by 2033 and use zero emissions heating (and cooling) by 2045, where within our legal competence

20. We will reform the existing EPC assessment process so that it includes three indicators so that it is compatible with both our fuel poverty and our climate change targets

21. We will introduce a new tenure-neutral Housing Standard which will ensure that our homes, both new and existing, achieve the same levels of energy efficiency

22. We will work with social housing stakeholders to respond to the Zero Emissions Social Housing Taskforce report and recommendations and bring forward the review of EESSH2 as quickly as possible

23. We will introduce new energy standards for new homes in 2021 and 2024, taking into account the responses to our consultation

Theme: Strategic approach

24. We will work with local authority partners and wider stakeholders to introduce LHEES for all local authority areas by the end of 2023

25. We urge the UK Government to review levy funding for the Energy Company Obligation and the Warm Homes Discount and work with Scottish Ministers so that these can be combined as a single, flexible Scottish Fuel Poverty scheme, as provided for in the Scotland Act

Improving Access to Affordable Energy

Theme: Levies

26. We urge the UK Government to rebalance environmental and social obligation costs (levies) on energy bills to reduce the premium that is paid for by customers who use electric heating

27. We published our research into the impacts of rebalancing levies and charges on electricity and gas supplies alongside our Heat in Buildings Strategy and we will further consider the potential options for reviewing levies and the impacts these may have on fuel poor households

Theme: Tariffs

28. We will continue to press for customers with pre-payment meters to access similar tariffs to direct debit customers

29. Ensure our lived experience research with fuel poor Gypsy/Travellers includes examination of energy prices on some local authority sites with a view to better understanding the particular challenges facing Gypsy/Traveller communities

Theme: Renewable and storage technologies

30. We will continue to monitor the effectiveness of new technologies in demonstration projects and incorporate the learning into our delivery schemes to maximise the benefit for fuel poor households

31. We will act on the evidence from current research to understand the cost effectiveness of thermal, electrical storage and rooftop solar photovoltaics to support households to reduce bills. Where this proves effective we will consider support for them through Warmer Homes Scotland, the scheme that replaces it, and our Area Based Schemes

Theme: Promoting consumer engagement

32. We will ask Consumer Scotland to consider tracking the impact of decarbonisation on households as part of their future workplan

33. We will continue to work with BEIS, Ofgem, Smart Energy GB and the wider energy market to ensure Scottish consumers are considered and can access the benefits of smart meters as the roll out continues, particularly representing the interests of those at highest risk of fuel poverty

Making it Easier to Use Energy Effectively

Theme: Research

34. Working with the Scottish Fuel Poverty Advisory Panel, we will explore opportunities to carry out further research to understand how people in fuel poverty with different protected characteristics use energy in the home to ensure our approach promotes equality of outcomes

Raising Household Incomes

Theme: Improving the social security system

35. We will share the learning of the Financial Inclusion Universal Pathway Quality Improvement Collaborative to strengthen partnership working between income maximisation services and health settings

36. We will explore how data sharing could enhance support from Home Energy Scotland to provide fuel poor households with a benefits check

37. We urge the UK Government to reconsider its decision to cut Universal Credit by £20-per-week

38. We will explore how a Minimum Income Guarantee could offer those on low incomes safety, security and dignity, which will impact on fuel poverty by raising the level of income available to households to meet their reasonable energy needs

Theme: Providing financial support

39. We urge the UK Government to review levy funding for the Energy Company Obligation and the Warm Homes Discount and work with Scottish Ministers so that these can be combined as a single, flexible Scottish Fuel Poverty scheme, as provided for in the Scotland Act [Also covered under Strategic Approach theme of Poor Energy Efficiency]

40. We will deliver our replacement benefit for Winter Fuel Payment on a like-for-like basis

41. We will replace the Cold Weather Payment with a new annual payment of £50 for all low income households who are currently eligible to receive the Cold Weather Payment during cold spells, providing greater certainty and consistency for around 400,000 people in Scotland

42. We will double the value of the Scottish Child Payment to £80 every four weeks from April 2022

Theme: Reducing Household Costs

43. We will expand universal free school meal provision in primary schools and special schools and deliver alternate free school meal support for all eligible children in holiday periods

44. We will deliver 110,000 energy efficient, affordable homes by 2032 – at least 70% of which will be in the social rented sector and 10% in our remote, rural and island communities – which will ensure homes are affordable as well as warmer and cheaper to heat

45. We will produce a Rented Sector Strategy and include any legislative aspects in a Housing Bill in this parliamentary term which will support renters in ensuring their housing costs are affordable and levels of fuel poverty in the rented sector are reduced

46. We will provide free bus travel to all young people aged 21 and under, which will impact on fuel poverty by ensuring household incomes can be used to meet reasonable energy needs

47. We will continue to mitigate the bedroom tax until such times as we are able to abolish it, which will impact on fuel poverty by ensuring household incomes can be used to meet reasonable energy needs

Theme: Increasing income from employment

48. We will continue to roll out a Fair Work First approach across the public sector, which will help ensure households have adequate levels of income to meet their reasonable energy needs

49. We will continue to encourage more employers in Scotland to pay the real Living Wage, which will help ensure households have adequate levels of income to meet their reasonable energy needs

50. We will continue to encourage more employers in Scotland to achieve Living Hours Accreditation, which will help ensure households have adequate levels of income to meet their reasonable energy needs

Advice and Support

Theme: Delivery Schemes

51. We will continue to fund Home Energy Scotland to provide advice and support on how to reduce energy bills and make homes warmer and cheaper to heat

Partnership Working

Theme: Social Security

52. We will continue to work together to develop effective referral routes between Home Energy Scotland and Social Security Scotland and share best practice to ensure fuel poor households are getting full access to the support to which they may be entitled

Monitoring and Reporting

Theme: Measuring Outcomes

53. We will work with key stakeholders, including local authorities, COSLA, and the Scottish Fuel Poverty Advisory Panel to develop an outcomes framework that we will publish in 2022

Theme: Reporting

54. Working with key partners, including the Scottish Fuel Poverty Advisory Panel, we will develop a reporting format that will set out the progress we have made in reaching the fuel poverty targets. We will report every three years, with the final report being published no later than 2042

Theme: Review

55. We will keep this Strategy under review and will revise it at least every 5 years, with the first review taking place no later than 2026