Westminster urged to act to reduce energy bills for those in greatest need

UK ministers are being urged to deliver targeted help for those struggling with “unaffordable” energy bills.

Alasdair Allan, acting climate action minister in the Scottish Government, has written to the Labour Government at Westminster calling for a discounted rate to be introduced for those in greatest need across the UK.

It comes after a working group set up by the Scottish Government to consider a “social tariff” for energy prices published its recommendations.

The group included energy firms EON, ScottishPower, Scottish Gas, EDF, Octopus and Ovo, as well as consumer bodies such as Citizens Advice Scotland and Advice Direct Scotland.

Mr Allan said the report had shown “cross-sector consensus on the way forward”, as he called on the UK Government to act.

The minister said the Scottish Government had “worked very productively with energy providers and advice groups to come up with a deliverable scheme”.

However he added: “The fundamental levers to make a difference are with the UK Government.

“Existing one-off flat rate rebates are insufficient and are not a long-term solution, and the UK Government must urgently deliver a unit rate discount, with the level of discount proportionate to need.

“The outputs from our group must act as a foundation and mainstay of a revised strategy, providing a signal of intent and leadership by the UK Government in tackling fuel poverty at source.”

In a letter to UK energy consumers minister Miatta Fahnbulleh, he said a social tariff – which could be “perhaps better framed as targeted bill support” – is “urgently needed to ensure that energy consumers are protected against high costs at source and can afford all of their energy needs”.

He stressed high energy prices “remain the single greatest driver of fuel poverty in Scotland”, insisting previous action has not been enough to “drive down stubbornly high fuel poverty rates”.

The most recent figures show that in 2023, 861,000 households across Scotland – 34% of all households – were estimated to be in fuel poverty.

That compares to the estimated 13% of households – some 3.17 million – in England that were believed to be affected by the problem.

Calling for action, Mr Allan suggested the UK Government “must urgently deliver” a unit rate discount on energy bills, adding the level of discount shoulder be “proportionate to need”.

He went on to suggest a “sophisticated set of metrics should be developed” taking in factors such as household income, medical need, and rurality, with the discount then applied automatically to those who are eligible.

Stressing the need for action, he told Ms Fahnbulleh: “Only the UK Government has the power to legislate in respect of energy price setting and regulation.”

Adding that “addressing fuel poverty is a challenge shared across Great Britain”, Mr Allan said the Scottish Government is committed to “working closely” with Westminster on the issue “to deliver reform as quickly as is practicable”.

A Department for Energy Security and Net Zero spokesperson said: “Everyone deserves to live in a warm, comfortable home.

“We have set out proposals to expand the warm home discount which would help almost three million more households in Britain, including almost one million with children, with support to pay their energy bills next winter.

“Only by sprinting to clean power by 2030 can the UK take back control of its energy and protect both family and national finances from fossil fuel price spikes.”