National Islands Plan: annual report 2024

Fuel Poverty

Strategic Objective 5 – Reduce levels of fuel poverty

Commitment 5.1 Review how delivery schemes can work better locally and review funding for island communities.

Implementation Route Map 2023

• The Warmer Homes Scotland scheme relaunched in October 2023 and eligibility criteria have been reviewed to ensure it is still reaching the target audience and supporting fuel-poor households.
• We will re-run the Islands Cost Crisis Emergency Fund in 2024-25. The fund targets immediate support to those who are struggling due to the cost of living crisis, through direct allocation to the six island local authorities.

Our funding to councils to deliver local Area Based Schemes to tackle fuel poverty in 2023-24 reflected need, as agreed with COSLA. This includes both the greater incidence of fuel poverty and extreme fuel poverty, as well as the higher delivery costs experienced by many island communities.

The Warmer Homes Scotland scheme re-launched in October 2023, with a strong focus on decarbonisation, more measures per intervention and with a larger contract value. Eligibility criteria for the scheme were set in conjunction with the Fuel Poverty Advisory Panel.

There are currently 9 island installers and since October 2023 to November 2024, 120 households in the islands region have been completed. To ensure that all customers have access to the same set of measures in island areas we use a National Customer Price, this ensures measures are charged at the same level regardless of location.

A further £1 million was allocated for the Islands Cost Crisis Emergency Fund (ICCEF) in 2024-25. The fund was developed to specifically recognise and tackle the higher cost-of-living pressures facing island households. Since December 2022, it has distributed £3.4 million to the six island local authorities on a population basis.

Commitment 5.2 Develop a remote rural, remote small town and island Minimum Income Standard uplift, with the uplift for island areas to be determined separately.

Commitment Fulfilled.

This commitment was fulfilled in 2021. Please see the National Islands Plan Annual Report 2021 for further details.

Commitment 5.3 Produce an Island Community Impact Assessment (ICIA) on the final Fuel Poverty Strategy, ensuring that representatives from island local authorities are fully involved in its development.

Commitment Fulfilled.

This commitment was fulfilled in 2022. Please see the National Islands Plan Annual Report 2022 for further details.

Commitment 5.4 Carry out research and analysis to meet the requirements of the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019 that will also enhance our understanding of the costs of living faced by families living in island communities.

Commitment Fulfilled.

This commitment was fulfilled in 2021. Please see the National Islands Plan Annual Report 2021 for further details.