What is Fuel Poverty?

The Scottish Government’s agreed definition of Fuel Poverty is:

"A household is in fuel poverty if the household’s fuel costs (necessary to meet the requisite temperature and amount of hours as well as other reasonable fuel needs) are more than 10% of the household’s adjusted net income and after deducting these fuel costs, benefits received for a care need or disability, childcare costs, the household’s remaining income is not enough to maintain an acceptable standard of living."

The Scottish House Condition Survey estimates that 34% of Scottish households are in fuel poverty.

The Scottish Government’s fuel poverty strategy, published in 2021, outlines Scotland’s approach to eliminating fuel poverty. The vision is that everyone in Scotland should live in a warm, safe, affordable home that meets their needs, regardless of location or income.

The strategy targets the four recognised drivers of fuel poverty: poor energy efficiency, high energy costs, low household income, and how energy is used in the home.

It sets statutory milestones requiring that by 2040 no more than 5% of households are fuel poor and no more than 1% are in extreme fuel poverty.

Progress is monitored through periodic reports, with the first covering 2021–2024. This outlines actions taken whilst also acknowledging the profound impact of the post‑2022 energy price crisis. It evaluates the extent to which current actions are moving Scotland toward the 2040 goals.

However, the report acknowledges that fuel poverty has increased, with the Scottish House Condition Survey estimating 34% of households in fuel poverty in 2023, up from 31% in 2022.

These rises are attributed primarily to soaring energy prices, which have offset gains from energy‑efficiency improvements and income‑support measures. The report therefore presents a mixed picture: action has been taken, but external pressures, especially energy costs, have significantly hindered progress towards targets.

Rural Fuel Poverty

Fuel poverty levels are higher in rural areas of northwest Scotland due to factors such as bad weather, inefficient housing, low incomes, elderly demographics and a lack of mains gas, meaning that many households must use more expensive heating types, particularly electricity. A typical standard tariff for electricity is now over four times as expensive as mains gas, yet many people have no choice but to pay for expensive electric heating.

ALIenergy calls for the price of electricity to be reduced

Fuel poverty levels in rural Scotland could be slashed if electricity became more affordable. The high cost of electricity is a driver which the Scottish Government does not control. While electricity prices remain as high as they currently are, fuel poverty is likely to continue to blight many of our lives.