Warnings over rise in fuel poverty in Scotland

Almost 170,000 extra households could be forced into fuel poverty if other utility companies follow Scottish Power's price rise, Labour has warned.

The new figures were revealed in answers to parliamentary questions on Friday and follow last month's announcement by Scottish Power that an average 19 per cent increase in gas and 10 per cent increase in electricity costs will be imposed from August 1.

Scottish Cabinet Secretary for Infrastructure Alex Neil MSP said that 770,000 households were estimated to have been in fuel poverty from 2009.

But Labour leader Iain Gray warned that if Scottish Power's increases were repeated by other suppliers another 169,000 households could fall into poverty.

"These shocking figures expose the harsh reality of big power companies ramping up fuel bills," said Mr Gray.

"Price hikes like this affect every Scot but they will have a disproportionate impact on those who are on the lowest incomes.

"It is our duty to help the poorest and most vulnerable in our society through these tough times. They will be hit hardest by these price increases."

He criticised the Scottish National Party's decision to slash the fuel poverty budget by almost a third when one in three Scots are now struggling to heat their homes.

“There has been good progress on improving the energy efficiency of Scotland’s homes but, time and again, the Scottish Government’s efforts to lift people out of fuel poverty are being undermined by high fuel prices.

“It is scandalous that so many people are suffering from fuel poverty in energy-rich Scotland, and the Scottish Parliament needs full powers so that we can do more. Ministers met with Ofgem and support the work of Ofgem to further protect consumers, deliver transparency on energy prices and ensure companies treat their customers fairly.

“The Scottish Government’s universal home insulation scheme’s budget has actually been increased by 25%, from £10million to £12.5million, and is helping people right across Scotland.”

In March, however, Graham Blount, chairman of the Scottish Fuel Poverty Forum, announced his resignation in protest at having been kept in the dark over government policy changes and decisions on fuel poverty issues.

In his letter to Mr Neil, then a junior housing minister, shortly after changes were announced to thegGovernment’s Home Insulation Scheme and the consequent budgetary implications for the associated Energy Assistance Package, Blount argued:

“The simple fact that this was being discussed within government circles at the time of our meeting last week but the decision was taken not to invite advice from the forum has for me been the last straw in the Scottish government’s repeated ignoring of the forum’s role in advising ministers.

“While we are, as was said last week, not called an advisory group, our terms of reference and remit are quite clear on that role and we have been prevented from exercising it over the past few months.