Emergency energy bill help for Scots hits record levels as 1 in 5 Scot in poverty

It comes as the Scottish Government has come under fire over a move to cancel a vital support fund helping households at risk of fuel poverty while campaigners call for action on "shocking" levels of poverty.

The £30m Fuel Insecurity Fund was just last year described by the first minister Humza Yousaf as a “vital lifeline” for struggling households.

The foundation, which provides emergency fuel vouchers to people who cannot afford to top up their prepayment meter, has previously received funding from the Scottish Government fund to finance its operation in Scotland.

Since the launch of its first Fuel Bank Centre in 2016 in Glasgow South East, the charity as of last year ran 135 centres across the country. Last year it estimated that 38% of those it supported were children.

It was set up to help as many people as possible benefit from fuel crisis support and are a referral point by Scottish Government and a host of local authorities provides emergency financial support.

It a household runs out or is at risk of running out of credit and cannot afford to top it up, it can apply for an emergency voucher from Fuel Bank through one of its 790 partners.

According to the foundation, it has has seen the number of people it has helped in Scotland increase by more than 250%, rising from 27,054 in winter 2021/22 to 66,466 in 2022/23 and 96,942 in the period between November 2023 and March 2024.

It comes as analysis from the Joseph Rowntree Foundation (JRF) found that 1.1m Scots are living in poverty, with 240,000 of those children.  Some 760,000 of those are living in deep poverty, and 450,000 are in the 'very deep' category.

Some 280,000 people in Scotland are just £40 a week from being pushed into poverty and 50,000 people are only £10 a week away. 

And some 260,000 people in Scotland are just £40 a week from being in deep poverty with 760,000 already there.

The poverty line is where incomes are less than 60% of the UK average after housing costs have been deducted, people in deep poverty have incomes less than 50% and very deep poverty levels involve incomes of less than 40%.

JRF is now telling Scotland’s politicians that failure to act on this issue is a "political and moral choice".

Two weeks ago First Minister John Swinney declared the eradication of child poverty as his "single most important objective". He says it "stands in the way of both social justice and economic growth".

It was announced that energy bills will fall by an average of £122 annually per household oon dual fuel from July to stand at £1568 - the lowest since Russia invaded Ukraine two years ago.

But that price cap set by the energy regulator Ofgem remains £526 or 50% higher than it was three years ago.

Meanwhile a Warm This Winter survey found that the new First Minister John Swinney should do more to end the crisis with 94% of Scots wanting action on lowering our record energy prices.

A ScotPulse survey of 2660 people earlier this month found the public divided on solutions - but with majority support for more financial help for households with high bills as well as action on long-term solutions like clean heat and a nationwide insulation programme.

Some 25% to see greater cash support for households to install eco-friendly heat pumps to replace gas boilers.

Matthew Cole, head of the Fuel Bank Foundation said: “Each winter, we are seeing more and more people coming to us for help. As a small charity that’s dependent on donations, we are spending millions each year on providing crisis support to vulnerable and low-income households, plugging the gap in social provision.

“Demand in Scotland has been particularly acute, with referrals from our partners at an all-time high.

"In the last year alone we have helped more than a third of the total people helped over the past nine years, such is the growing level of demand. With typical energy bills expected to still be around 40% more than they were pre-energy crisis, and unlikely to return to ‘normal’ levels for some time, on top of higher food bills, increased rent and mortgage payments and paying off previously accrued debts, families are at financial breaking point.

“We may be heading into the warmer summer months, that doesn’t mean the challenges households face in winter magically disappear. Yes, the heating may not need to be on as much or at all, but people still need credit on the meter to cook, take a bath or shower, use household appliances or power medical equipment. If the money isn’t there, something has to give, which sadly is the situation many of our clients find themselves in, whether it’s skipping meals, not showering or not washing clothes as often.”

He said a reduction of the energy price cap provided a small financial lifeline but that it was not enough and that more help was needed from Government to support households at risk of fuel crisis, both now and in the future.

Chris Birt, JRF's associate director for Scotland, said: “Whoever runs the UK government after July 4th must make easing the burden of hardship on families in Scotland an urgent priority. The fact that many powers are devolved does not absolve the UK Government from their responsibility to reduce poverty.

“Such high levels of hardship – with over a million people experiencing poverty in Scotland, many of which are in very deep poverty, and hundreds of thousands more teetering on the edge of it – are a stain on the moral conscience of our nation.

“Our political leaders must be specific and ambitious about how they will tackle poverty. But so far, there hasn’t been anything like the level of urgency that we need to see. Pointing to future growth as a panacea just won’t cut it.

“Failure to act is a political and moral choice – and one they, and the prospective MPs they want to send to Westminster, should expect to be judged on.”

A Scottish Government spokesman said: “The Scottish Government is committed to tackling fuel poverty and is supporting vulnerable households through a range of actions.

“This includes the Winter Heating Payment which, as of 31 March, has supported almost 418,000 low-income households with a total investment of £23 million in 2023-24. In addition, over 30,000 Child Winter Heating Payments were made last winter totalling £7.2 million, helping mitigate additional heating costs for households of disabled children and young people during winter.

“However, energy prices are the single most important driver of fuel poverty. We have called repeatedly for the introduction of a social tariff to provide the right and fair support for some of the most vulnerable people in society.”