Letter to the First Minister regarding the reinstatement of a fund to support people
In the lead up to the budget we have sent the letter below to the First Minister asking for the reinstatement of a fund to support people this winter
The letter was sent from Energy Action Scotland and on behalf of people and organisations who have also signed it. If you would like your signature added to the letter in a personal or organisational capacity please complete this form.
Provision of Additional Support for Fuel Debt Advice and Assistance Letter
Dear First Minister
Re: Provision of Additional Support for Fuel Debt Advice and Assistance
We are writing to ask that the Scottish Government in its upcoming Budget considers making additional funding available for the Scottish Fuel Insecurity Fund, a fund to support a broad range of households who are struggling to afford necessary levels of energy or are dealing with mounting energy debts through local trusted advice organisations, both for the remainder of this financial year and for the financial year 2024/2025.
At our conference in Clydebank on 14/15 November time and time again advice professionals and other experts in fields connected to fuel poverty stressed the importance of financial support and expert advice.
This funding would be vital in helping Scotland’s advice community support the tens of thousands of families that will be contacting them over the coming months for advice and support and who are struggling with the cost-of-living crisis and rising energy costs.
This will include many of the almost 900,000 older people who will lose their winter energy support as a direct result of the UK and Scottish Government’s decision to make the Winter Fuel Payment and Pension Age Winter Heating Payments a means tested benefit. Many of these older households are still not in receipt of Pension Credit or are simply living with very low individual and household incomes. It will also include the thousands who will struggle to pay their electricity and gas bills as a result of the recent 10% increase in fuel bills for the average household and the loss of cost of living payments for low income and disabled households which were available to them in 2023/2024.
As you will be aware in the last budget the Scottish Government took the unfortunate decision to end the £30 million funding it was previously investing in the Fuel Insecurity Fund in Scotland. This funding in 2023/2024 saw over £8.5 million made available to the Fuel Bank Foundation to support 85,000 households with energy top up vouchers; £9 million made available to Advice Direct Scotland to administer Home Heating Support grants; and £7.25 million made available to the Scottish Federation of Housing Associations to provide 55,000 households with advice and support.
The loss of this support cannot be overstated and has had a significant impact on advice agencies this year and their ability to provide advice and support to their clients. It is also likely to significantly increase demand on agencies to provide advice to households who cannot pay their bill and are self-disconnecting themselves as they are on prepayment meters. Agencies that will also have to endure a significant increase in their costs as a result of the UK Government’s decision to increase Employers National Insurance which is likely to result in a loss of resources at a time when demands remain incredibly high.
The situation in Scotland has been made worse as Scots have seen no benefit from the £82million that the Scottish Government received from the UK Government in this financial year, because of its extension to the Household Support Fund for England, with no similar scheme operating in Scotland. The UK Government has also confirmed an extension to the Household Support Fund in England for 2025/26 that recognises the ongoing pressure and damage to households unable to access adequate heat and power. High energy costs look set to endure, energy debt is spiralling and 1 in 3 households are likely to be in fuel poverty this winter and
beyond.
We, therefore, would ask that the Scottish Government to make funding available this winter and throughout 2025/26 via a revitalised Scottish Fuel Insecurity Fund to help advice agencies support their clients and also ask that this should include a grant scheme, that would allow local or specialist advice agencies to apply for funding to provide additional capacity to their existing services.
Yours sincerely
Frazer Scott
CEO, Energy Action Scotland
and on behalf of:
Mike Dailly, Govan Law Centre
Alan McIntosh, Money Advice Campaigner
Lynda Mitchell, ALIenergy
Ellie Wagstaff, Marie Curie
Chris Birt, Joseph Rowntree Foundation
Dr Manal Eshell, West of Scotland Regional Equality Council
Derek Mitchell, CEO Citizens Advice Scotland
Craig Anderson, Stirling Citizens Advice Bureau
Simon Francis, End Fuel Poverty Coalition
Bryan Dods, Caithness Voluntary Group
Dr Keith Baker, Research Fellow, Glasgow Caledonian University
Lucy Mulvagh, Health and Social Care Alliance Scotland (the ALLIANCE)
Margaret Moynihan, Lochaber Housing Association
Julie Mackinnon, Wick Community Hub SCIO
Kevin Bonaccorsi, Willowcare Trust
Stewart Wilson, Point & Sandwick Trust
Geraldine Cotter, Money Matters Money Advice Centre
Don Macintyre, Ex-Energy Action Scotland Convener
David MacKay & Lawrence Johnston, Scarf
Carers Scotland
Dr Alan Hutton, Retired Senior Lecturer, Glasgow Caledonian University
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