Since its inception in 1983, Energy Action Scotland has been campaigning for an end to cold, damp, expensive to heat housing. It does this by developing and promoting effective solutions, particularly in domestic energy efficiency. 

What is fuel poverty?

Fuel poverty is the inability to afford adequate warmth in the home, usually defined as having to spend 10% or more of income to meet recognized heating standards.  Fuel poverty is caused by a combination of 3 factors: poor energy efficiency of the dwelling; low disposable household income and the high price of domestic fuel.  Of these, the first is a matter devolved to the Scottish Parliament; the other two are matters reserved to the UK Government.

The consequences of fuel poverty

For those living in fuel poverty, the consequences are misery, discomfort, ill health and debt.  Living in a cold, damp environment can exacerbate health problems such as asthma and heart conditions. Often people struggling to pay their bills ration their use of energy, perhaps just heating one room or are forced to make the choice between cooking a hot meal and turning on a heater.

Fuel poverty – Scotland specific problems

Fuel poverty is a major problem in Scotland, which faces particular challenges unique from the rest of the UK:

• There is a strong association between income and fuel poverty, and according to the Fuel Poverty in Scotland: Further Analysis of the Scottish House Condition Survey report, there are almost no fuel poor households in the top three income bands [1]. According to the latest data from the Office for National Statistics, average gross earnings in Scotland in 2009 were found to be almost 9.2% lower than in England [2].
• Due to the difference in climate, Scotland has a much longer heating season and a home in the north of Scotland can spend 68% more on fuel use than in the south of England [3].
• Scotland has a large number of properties that are off the mains gas grid and which are likely to remain so; some 33% of homes in Scotland have no gas. Research from the Scottish Government has shown that the most effective measure for removing a household from fuel poverty is to fit a gas central heating system.  However many fuel poor properties are in rural and remote areas where the cost of providing a gas supply would be uneconomic. These areas are then forced to use more expensive fuels to heat and provide power to their homes.
• A further factor is the Scottish housing stock. The tenure mix has changed dramatically over the last 15 years with an almost complete reversal in figures, whereby 70% of all housing stock is now considered to be owner occupied or privately rented – a change from 70% being owned by local authorities prior to the right to buy legislation of 1981. Many of those who bought their council properties are now seen as asset rich but cash poor, often being unable to maintain their homes in a satisfactory manner.
• Scottish housing differs significantly from that found in England. While both countries have a similar proportion of properties with cavity walls (almost 70% in England [4] and 74% in Scotland [5]), the cavities in Scotland are 50% bigger than those in England and therefore cost significantly more to fill with insulation. In addition, Scotland has 10% of dwellings classified as ‘non-traditional’, split between concrete, timber and metal-framed housing [6]. All these types of property are ‘hard-to-treat’ in energy efficiency terms.
• Many of the current grant schemes focus on providing cavity wall and loft insulation. However, around 25% of all homes in Scotland do not have a loft, due to the large number of flatted and tenemental properties that are prevalent in many of our cities and towns.

Fuel poverty statistics

The SHCS Key Findings 2008 report found that there were 618,000 households (26.5%) in Scotland living in fuel poverty in 2008. However, the Scottish House Condition Survey Team, in its Estimate of fuel poor households in Scotland report [March 2008], calculated that for every 1% increase in fuel prices, roughly 8,000 more households would become fuel poor. Since 2003 there have been steep price rises for gas, electricity, coal and oil, bringing the estimated figure for the number of Scottish households in fuel poverty in 2009 to around 800,000.

Combating fuel poverty

In light of recent high domestic fuel prices, it is more important than ever for people to ensure that their homes are as energy efficient as possible, that they are claiming all the benefits and grants available to them to maximise income, and that they are on the cheapest tariff and payment method with their fuel supplier.

A number of initiatives are currently in place to help fuel poor and vulnerable households, many stemming from the UK Fuel Poverty Strategy and the Scottish Government requirement under the Housing (Scotland) Act 2001 that fuel poverty be eradicated in Scotland, as far as is practicable, by 2016. For more information on the main government and energy company schemes aimed at tackling fuel poverty, visit our Fuel Poverty Schemes page.

The health service also has its part to play. Referring patients with health problems exacerbated by living in a cold, damp home to sources of help such as the Energy Assistance Package should be seen as preventative medicine and so become a mainstream activity.

As part of the wider focus on energy, energy efficiency and reducing the demand for energy must be priorities as high as that of energy supply. The cheapest unit of energy is the one which you do not use or generate in the first place. Homes need to be ‘fuel poverty proof’ - that is, as energy efficient as possible - with access to a choice of domestic fuels and tariffs, and with household income maximised.

[1] Taken from Fuel Poverty in Scotland: Further Analysis of the Scottish House Condition Survey report.

[2] Calculated using figures from Annual Survey of Hours and Earnings (ASHE) 2009: Analysis by place of residence by Local Authority, Office for National Statistics.

[3] ‘Fuel Expenditure on Heating – Climactic Variation’, Digest of United Kingdom Energy Statistics, DTI 1995.

[4] ‘English House Condition Survey 2005: Annual Report’.

[5] ‘Scottish House Condition Survey 2002’.

[6] ‘Scottish House Condition Survey 2002’.

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Page last updated: 28 January 2010