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Scotland’s fuel poverty: could a social energy tariff help?

With more Scottish households facing fuel poverty in a resource rich country, something needs to change

Charlie McCarthy by Charlie McCarthy
01-10-2025 17:29
in Society
Reading Time: 5 mins read
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A light bulb with British pound coins inside representing full poverty in Scotland

Image by Colin Behrens from Pixabay with modification

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On the 1 October 2025 the energy price cap is set to rise by an average of £35 per household. Latest figures indicate 34% of households in Scotland, or 861,000 households, are living in fuel poverty and 19.4%, or 491,000 households, are in extreme fuel poverty – Scottish House Condition Survey

If you have ever considered what it’s like to live in fuel poverty, consider this account from Roxy Malik, an Argyll and Bute resident, who experiences fuel poverty.

“My long-term conditions and the energy crisis are having a huge impact on my physical, psychological and mental health and wellbeing. I end up leaving bills, bank statements, important letters and emails unopened because I’m so concerned – how much will I have to pay and how can I pay it? It becomes very daunting and overwhelming. Especially when you’ve been independent and worked hard all your life. It’s hard. A social tariff seems like a fairer way of doing things; it accounts for what a person needs, such as their health and medical needs. If it could take away the unjust cost of standing charges when you aren’t even using power, that would be brilliant.”

What is a social energy tariff?

A social energy tariff provides a discounted energy price for those who meet the eligibility criteria, such as low-income households and those living with unavoidably high energy costs due to disability or illness. The Scottish Government established the Social Tariff Working Group, which submitted its final recommendation in April of this year, calling for a unit rate discount or real-time rebate for eligible households.

Following this, the Energy Social Tariff Bill was introduced in July 2025 by Labour MP Polly Billington as a private member’s bill. The Bill calls for energy companies to be required to provide social energy tariffs for low-income customers. If introduced, this could lift thousands of Scottish households out of fuel poverty.

An energy charity on the frontline of fuel poverty

Argyll, Lomond and the Islands Energy Agency (ALIenergy) is a sustainable energy charity based in Oban, and works to promote sustainable energy use and renewable energy generation that, in turn, serves to combat fuel poverty and reduce carbon emissions. The charity provides much-needed advice and support to around 2,000 households a year. Initially operating only in Argyll, the charity has expanded its services over the years, branching into the Highlands and increasing its partnerships on local, national, and international levels.

Celebrating its 25th year, ALIenergy held a celebratory event on 25 September, with politicians, revered environmentalists, and fuel poverty activists in attendance. Along with the local MP, Brendan O’Hara, a revered environmentalist and poverty activist, ALIenergy is encouraging households to take advantage of all available support, such as checking their eligibility for the UK Government’s Warm Homes Scheme, offering a £150 energy bill discount for low-income families.

Lynda Mitchell CEO at ALIenergy said,

“We are delighted to be marking our 25th year, but we are focused on the real issue that we are living through a fuel poverty emergency. On a daily basis, we assist people who have to make the terrible choice between eating and heating their homes, and with winter on the way and the energy price cap set to increase yet again, this issue must be addressed by the UK Government. Much of the region we operate in is off the gas grid, and residents are often paying up to four times more for their heating. To address this, we are calling for the UK government to support a social energy tariff, to aid the most vulnerable in our society and pull people out of fuel poverty. I hope our anniversary event will send a message to residents living in fuel poverty across these regions and Scotland as a whole, that they are not alone.”

The Bylines Scotland ‘warm homes this winter’ appeal to our readers

If you are concerned about someone you know or maybe someone who lives next door, Bylines Scotland urges you to do something about it. Talk to the person you are worried about. A hard conversation but much better this than have them go without heating simply to feed themselves or their children. Contact organisations such as ALIenergy or The Heat Project who can provide the best advice, free of charge.


More on society.

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Charlie McCarthy

Charlie McCarthy

Charlie writes the "Out and About" monthly column for Bylines Scotland as well as a number of other features. Charlie lived for many years in North Yorkshire before moving back to Scotland. Originally from Glasgow, he lived in the North of England for most of his life. Before becoming a writer, Charlie was a science teacher. His areas of interest include politics, the environment and education.

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