Bringing Hope, Building Futures: Tackling child poverty delivery plan 2026-2031 – annex 6: Impact of policies on child poverty
This annex shows how policy contained within Bringing Hope, Building Futures: the third tackling child poverty delivery plan 2026 to 2031 links to the child poverty targets, via the drivers of child poverty, and indicates where policies are linked to particular outcomes for priority groups.
Making homes cheaper to heat
Seek to reduce the costs of heating a home, including for families with children at risk of fuel poverty by investing in the energy efficiency of homes, strengthening the energy advice offer and seeking action from the UK Government to reduce energy prices.
Actions included
- Warmer Homes Scotland and Area Based Schemes (Continuation) - £154m
- Islands Cost Crisis Emergency Fund (Continuation) - £1m
- Fuel Poverty Strategy (Continuation) - £N/A
Total investment in 2026/27 - £155m.
Impact of actions committed
Type of impact
These measures will indirectly impact on costs of living by reducing energy usage due to greater energy efficiency, accessing the necessary advice or services to manage bills and influencing national policy on energy markets/tariffs to reduce the cost of fuel. Direct support will also be provided via the Island Costs Crisis Emergency Fund and Warmer Homes Scotland.
Potential size
Under our proposals for targeted discounts, around 660,000 households in Scotland would see their estimated fuel bills go down by an average of £700 – with more than around 135,000 households lifted out of fuel poverty and more than 200,000 lifted out of extreme fuel poverty.
Certainty
Evidence is clear that policies in this space alleviate living costs for families. Warmer Homes Scotland supported 7,334 households in 2024/25, saving on average £450 on energy bills. The Fuel Poverty Strategy, work under the Heat in Buildings Programme (Warmer Homes Scotland and Area Based Schemes) and advice services are within Scottish Government’s control. Energy markets and the cost of energy are reserved to the UK Government.
Priority families targeted by the actions
Low income is a strong indicator of fuel poverty. There is evidence that households headed by: younger people (16-24); women; lone parents; and where a member has a long-term health condition are more at risk of fuel poverty, so mothers under 25 and disabled people may experience greater relative benefit. Our approach to targeting our Heat in Buildings support programmes includes low-income families, supporting them with the help they need to manage their energy bills.
Tracking progress
Development of a monitoring and evaluation framework for the Fuel Poverty Strategy is under way, informed by advice from the independent Scottish Fuel Poverty Panel. The Heat in Buildings Strategy has an established monitoring and evaluation framework with suggested indicators across a range of outcomes. Annual fuel poverty rates calculated based on the Scottish House Condition Survey are also published annually by SG. Work is also under development to obtain a fuller picture of the number of families accessing Warmer Homes Scotland.
Contact
Email: TCPU@gov.scot