Chamber and committees

Our budget for the Home Energy Efficiency Programmes for Scotland (HEEPS) is £74 million in 2013-14. We will spend nearly a quarter of a billion pounds over a three year period on fuel poverty and energy efficiency. For each of the next two years the Scottish Government spending plans allocated funding of £79 million for fuel poverty.

On 3 March 2014 we announced that £60 million of HEEPS funding has been allocated to local authorities for area based fuel poverty schemes for next financial year 2014-15.

The Scottish Government is committed to eradicating fuel poverty and is doing everything within its limited powers to achieve this.

Fuel poverty statistics published in December 2013 show a reduction in the number of households living in fuel poverty in Scotland. Between October 2011 and mid 2012 there was a 3.4% drop in fuel poverty, this equates to around 74,000 households, with improved energy efficiency contributing two-thirds of the fall.

The Housing (Scotland) Act 2001 set a statutory duty on the Scottish Government to eradicate fuel poverty in Scotland, as far as reasonably practicable by November 2016. The Scottish Fuel Poverty Statement was published in August 2002 and last reviewed in November 2010. The next review is planned to be published by the end of 2014.

On fuel poverty: the UK Government’s proposed changes to the energy company obligation (ECO) will have implications for the delivery of our Home Energy Efficiency Programme (HEEPS). We are working closely with delivery partners to better understand their likely impact. We will continue to use our HEEPS funding to maximise leverage under ECO and have relaxed the criteria for accessing Scottish Government funding to ensure support for those in fuel poverty continues.

On emissions targets set out in the Climate Change (Scotland) Act 2009: we expect the policy framework we have developed, as set out in the second Report on Proposals and Policies will allow us to meet our targets. Its flexibility allows us to deliver more where we can and we will continue to seek additional ways in which we can maximise the impact of the investments we make. Scottish households have received a greater than pro-rata share of the measures delivered under ECO.

The Scottish Government is currently working closely with local authorities, obligated energy companies and other delivery partners to assess the impact of the changes to the energy company obligation (ECO) on the Home Energy Efficiency Programmes for Scotland (HEEPS).

We will continue to use our HEEPS funding to maximise leverage under ECO and have relaxed the criteria for accessing Scottish Government funding to ensure support for those in fuel poverty continues.

Longer term, we have set out our commitment in Scotland’s Future about what we would do in an independent Scotland. We plan to remove certain obligations from energy bills and maintain current funding levels from central resources.

Some 1,500 households are reported by energy companies to have received installations in the period to end January 2014. Measures installed include: gas boilers, full gas central heating systems, heating controls, loft insulation and cavity wall insulation. The Scottish Government will publish a fuller breakdown by measure once this has been provided by all energy companies participating in the Affordable Warmth scheme.

The Energy Efficiency Standard for Social Housing is anticipated to be published shortly following constructive discussions and engagement with the representatives of social landlords and local authorities.

The following table shows the number of households whose installations have been completed (i.e. passed inspection) and for which the Scottish Government has been invoiced for both the Energy Assistance Scheme and stage 4 of the Energy Assistance Package in the period April to December 2013. The Scottish Government will publish data for the full 2013-14 financial year in due course.

Installations completed under stage 4 of the Energy Assistance Package relate to applications made prior to 1 April 2014.

The Scottish Government provides funding to local councils through area based schemes to support households to undertake enabling works to prepare for energy efficiency. In 2014-15 fifteen per cent (15%) of the £60 million area based scheme budget is available to councils for enabling works. This can cover the costs of loft clearance and other preparatory work in advance of the installation of energy efficiency measures.

Scottish Government funding for area based fuel poverty schemes is distributed across all councils in Scotland. £42 million of the £60 million available is allocated on the basis of need which takes into account levels of fuel poverty and reflects the different types of properties within rural areas. This ensures that funding is directed to those areas most in need of assistance, including our rural areas.

This year’s funding will support delivery in off-gas grid areas by providing specific funding to be used to deliver heating and insulation improvements for low-income and vulnerable households who meet the affordable warmth eligibility criteria in off-gas grid properties.

We are also considering how we can use our funding programmes to best meet the needs of off-gas grid households.