Efforts to tackle fuel poverty have stalled, UK’s Liberal Democrats claim

Scottish Government efforts to tackle fuel poverty have “stalled”, Liberal Democrats claimed as new analysis by the party indicated a £23 million real-terms spending cut for energy efficiency projects.

Spending by ministers on energy efficiency delivery programmes amounted to £124 million in 2021-22 – but it has now emerged this has slipped to £119 million in 2024-25.

If spending had kept pace with inflation, the Liberal Democrats claimed almost £142.8 million should have been committed for such work – adding that as a result this year’s allocation represents a £23 million real-terms cut.

Meanwhile, the fuel insecurity fund, which saw £30 million allocated to help those struggling with gas, electricity and oil prices in 2023-24, saw no money allocated to it for this year.

Liberal Democrat climate emergency spokesman Liam McArthur said: “Under the SNP/Green government over recent years, efforts to combat fuel poverty, affecting hundreds of thousands of households across Scotland, have stalled.”

Scottish Government statistics released earlier this year revealed almost a third (31%) of households were classed as being in fuel poverty in 2022, with some 791,000 households affected.

The total is up from 2019, when just under a quarter (24.6%) of households were struggling in this way.

Meanwhile, the average UK household energy bill is to increase by £149 from October, with the energy watchdog Ofgem announcing an increase in its price cap on Friday

It explained that rising prices in the international energy market, due to heightened political tensions and extreme weather events, were the main driver behind the decision.

With the prospect of bills rising, Mr McArthur said the “real-terms cuts” to spending on energy efficiency are “set to deepen the misery for individuals and families in communities right across the country, compounding the already woeful lack of progress we have seen”.

Mr McArthur said research by his party showed that at “the current rate of progress it could take almost 100 years to insulate all eligible homes”.

The Liberal Democrat added: “In the last parliament, SNP ministers dumped their commitment to eradicate fuel poverty.

“Scottish Liberal Democrats will continue to press ministers to roll out a new nationwide insulation programme to meet the scale of the challenge, providing a win-win of cutting emissions and household energy bills.”

Arina Russell, senior policy manager at the environmental charity WWF Scotland, said: “Reliance on fossil fuels and ongoing sky-high energy prices continues to relentlessly drive up the cost of living, leaving people across the country in fuel poverty.

“That’s why we’re calling on the Scottish Government to include the Heat in Buildings Bill in the forthcoming Programme for Government to enable householders and businesses to make the switch from expensive and damaging fossil fuels to renewable heat, such as heat pumps, to lower energy bills and reduce exposure to fossil fuel price instability.”

Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said: “The Scottish Government’s long-standing energy efficiency programmes have already supported over 150,000 households in or at risk of fuel poverty.

“Between winter 2020 to March 2024, the Scottish Government also made over £63 million available through the Fuel Insecurity Fund to assist with the worst impacts of the energy and cost of living crises.

“We are doing everything within our limited powers and fixed budget to support households struggling with energy bills, including continued investment in our Winter Heating Payment to provide targeted support at the most critical point in the year.”