Labour condemns more than 200m energy efficiency fund cut as fuel poverty soars

Labour has attacked the Scottish Government’s decision to slash more than £200 million from retrofitting funds as levels of fuel poverty in the country surge.

Figures from the Scottish House Condition Survey revealed earlier this week that more than 70,000 Scots fell into fuel poverty between 2022 and 2023.

Another 19,000 were pushed into extreme fuel poverty.

The same study also showed more than a million homes in Scotland fell short of the recommended energy efficiency rating of EPC C, making it more expensive to heat homes.

Labour said that came at a time when the SNP “repeatedly raided” funding for energy efficiency schemes.

In 2022/23, the Scottish Government removed £133 million from various energy efficiency schemes throughout the year, Labour said, and in 2023/24, another £87.5 million was re-allocated mid-year.

PA understands the 2022 figure is disputed by the Government, with nearly £15 million of that relating to energy industries, rather than heat efficiency for homes.

The coming Scottish Budget will see further cuts to retrofitting with energy efficiency and decarbonisation cut by almost £18 million in real terms, the party said.

Sarah Boyack, Labour’s net zero spokeswoman at Holyrood, urged the Government to take action.

She said: “As fuel poverty in Scotland was soaring, the SNP was raiding funds from schemes that would have upgraded homes and cut bills.

“No-one will soon forget the economic chaos the Tories inflicted on Scotland but the truth is the SNP has fanned the flames of fuel poverty.

“At a time when we urgently need to retrofit homes in order to cut bills, reduce fuel poverty and tackle emissions, the SNP has no plan.

“Across the UK, Labour is working to tackle fuel poverty by investing in cheaper, cleaner energy through its publicly-owned GB Energy company but we need action in Scotland too.

“The SNP must set out a real plan to upgrade Scottish homes and tackle the scandal of fuel poverty.”

Acting Climate Action Minister Alasdair Allan said: “For the most part our schemes are demand led, reliant on individuals and organisations coming forward to apply for or accept funding offers.

“In-year transfers enable effective use of public funds where they are needed, rather than allowing money to go unspent.

“Demand for our schemes has risen in recent years and we continue to offer a generous package of support for households looking to move to clean heat.

“Despite a challenging budget we remain committed to making people’s homes warmer and helping households switch to clean heating.

“Our 25/26 draft budget commits to invest more than £300m in heat and energy efficiency supporting over 20,000 households to save up to £500 on their energy bills a year and helping make their homes warmer and more comfortable.”

“We are considering carefully the many complex issues raised by the 1600 responses to our consultation on proposals for a Heat in Buildings Bill, and will confirm next steps as soon as practicable.”

Published: 02/02/2025 by Radio NewsHub