Nearly 5000 Scottish households experiencing fuel poverty have missed out on essential home energy upgrades as £60 million of government funding remains unspent, according to new reports. The Scottish Government’s data shows that approximately a third of the £192 million allocated for energy efficiency projects over the last three years has not been utilised, amounting to around £61.8 million left unused, with £10 million left unspent in the 2023-24 period alone.
The fund was designated for Area-Based Schemes (ABS) aimed at improving energy efficiency in homes across Scotland’s most fuel-poor regions, providing upgrades like wall and loft insulation. Housing advocates stress that addressing the issue of leaky housing is crucial to lifting both homeowners and tenants out of fuel poverty. The Existing Homes Alliance (EHA) expressed concern that the unspent funds could have facilitated upgrades in almost 5000 homes, highlighting the urgent need for action.
With approximately one-third of Scottish households currently struggling with fuel poverty, the CEO of Energy Action Scotland, Frazer Scott, attributes this challenge to substandard energy efficiency standards in homes coupled with high energy costs and declining incomes. Scott emphasises the missed opportunities for families to improve living conditions, reduce costs, and enhance comfort levels due to underspending on ABS budgets.
Gillian Campbell, co-director of the EHA, lauded the positive impact of the ABS programme in transforming communities by reducing fuel poverty, creating employment opportunities, and improving overall health and well-being. However, the EHA cautions that nearly a third of the total ABS budget remained unspent over the past three years, a concerning trend as fuel poverty rates continue to rise.
Reports from the EHA reveal inconsistencies in the delivery of ABS initiatives across different regions, with delayed grant allocations to councils impeding timely implementation of energy efficiency projects, particularly before the onset of harsh winter weather conditions. The EHA is urging the Scottish Government to collaborate with councils and partners to ensure the full utilisation of allocated funding in future schemes, advocating for earlier grant distribution to enable effective project planning and execution.
Acting Minister for Climate Action, Alasdair Allan, welcomed the positive outcomes achieved through ABS investments in communities across Scotland, emphasising the scheme’s role in alleviating fuel poverty and fostering economic growth. He cited increasing claims for funding by councils in recent years, with all Scottish councils submitting funding requests in 2023-24 amounting to 85% of the available government allocation.
In conclusion, the unspent £60 million underscores the pressing need for efficient allocation and utilisation of funds to address fuel poverty in Scotland. Collaborative efforts between government, housing organisations, and local councils are essential to ensure that vulnerable households receive the support needed to improve energy efficiency and alleviate financial burdens associated with fuel poverty.