Scottish housing associations report ‘alarming increase’ in tenant fuel debt

Insight & comment19.05.2212:01 AM by Lucie Heath

Housing associations in Scotland have seen an “alarming increase” in tenant fuel debt and energy rationing in recent months, the Scottish Federation of Housing Associations (SFHA) has warned.

Picture: Getty

The trade body has highlighted its concerns to the Scottish parliament’s Net Zero, Energy and Transport Committee’s inquiry into rising energy costs and is calling for urgent action from both the Scottish and UK governments to prevent worsening levels of fuel poverty among social housing tenants.

In its submission, the SFHA said that the continued reduction of welfare in relation to inflation has meant the income of many tenants has been eroded.

It welcomed the support introduced by both governments, including the Scottish government’s £290m package to address the cost of living and the repayable £200 rebate on energy bills introduced by the UK government, but said this intervention was not enough to support those at risk.

Aaron Hill, director of policy and membership at the SFHA, said that the £200 electricity bill discount will “ultimately do little to support those most at risk of fuel poverty, and the requirement to pay this back could leave many worse off”.

The SFHA highlighted in particular the needs of social housing tenants living in remote and rural Scotland, which it said are disadvantaged by lack of access to the gas network, a longer heating season and higher energy distribution costs.

Mr Hill added: “It is extremely worrying that our members are already reporting an increase in fuel debt and energy rationing amongst their tenants. Without urgent action from both the Scottish and UK governments, the situation will continue to get worse, with more tenants pushed into fuel poverty.”

It comes as social landlords across the UK warn that their tenants are struggling due to the soaring cost of living.

Earlier this month the UK’s biggest housing association, Clarion, called on the government to increase the amount available via Universal Credit after the Bank of England warned that inflation was likely to hit a 40-year high of 10.2% by the end of this year.

The SFHA is calling on the Scottish government to increase its Social Housing Fuel Support Fund and respond to recommendations from the Zero Emissions Social Housing Taskforce (ZEST).

ZEST published a report in September last year to coincide with the COP26 conference in Glasgow that outlined a number of recommendations on how the social housing sector and the Scottish government could work together to achieve net zero targets.

A Scottish Government spokesperson said said the cost of living crisis is impacting "every household in the UK", adding that it recognised "those on the lowest incomes are least able to absorb cost increases".

They said the government was doing everything it could within its powers to support people, including by investing almost £770m this year to tackle the crisis.

“We are grateful to Zero Emissions Social Housing Taskforce (ZEST) for the work they have undertaken and will respond to their recommendations shortly,” the spokesperson added.