Off-grid payment increase welcome but won't prevent rural fuel poverty

Press Release

Scottish Land & Estates has welcomed the Chancellor’s uplift in alternative fuel payments – but warned the additional £100 will not prevent energy poverty in rural Scotland this winter.

The rural business organisation has been leading the campaign for increased financial support for off grid homes to achieve parity with the Energy Price Guarantee, which is estimated to save £500-£700 for urban households by April 2023.

Off grid homes will now receive a £200 (rather than £100) payment – still significantly lower support than dwellings with mains gas supply.

Sarah-Jane Laing, chief executive of Scottish Land & Estates, said:

“Over the past few months we have publicly raised the inferior financial support available for off-grid homes in rural Scotland whilst also addressing this matter directly with the UK Government.

“It is welcome that the Chancellor has recognised the problem and made a small step to provide a £100 uplift. However, this won’t be enough to stop many rural households in Scotland from entering fuel poverty this winter.

“Prices for heating oil have more than doubled in the last year, with many people unable to afford to fill their fuel tanks at a cost of thousands of pounds. An increase to a £500 payment would have been equitable with dwellings on mains supply.”

The organisation added that the overall economic picture meant tough years ahead for Scotland’s rural economy.

Ms Laing continued: “Formal confirmation of the UK entering recession was inevitable but the bleak economic forecast set out in the autumn statement will do little to ease the existing pressure on rural businesses in Scotland.

“Our rural enterprises are at the forefront of tackling climate change, delivering food production and addressing biodiversity loss - ensuring that fiscal policy helps to support these positive outcomes is crucial to the wellbeing of our country.”