Thursday 27 October 2022

Net zero heating package needed to tackle soaring rural fuel poverty

 MEDIA RELEASE from The Existing Homes Alliance

A new net zero heating package could cut the cost of heating for thousands of households by transforming Scotland’s rural homes, according to rural organisations.

The Existing Homes Alliance [1] and rural groups are calling for the Scottish Government to set up a Rural Homes Just Transition Package [2] that would support people living in rural and island areas to insulate their homes and install zero emissions, renewables-based heating systems.

People living in rural areas are significantly more likely to be living in fuel poverty, with 42% of households in remote rural homes classed as fuel poor or in extreme fuel poverty. This compares to 24.6% across Scotland as a whole. These figures are from 2019 and the true scale of fuel poverty is now believed to be significantly higher, with research earlier this year suggesting as many as 57% of people living in the Western Isles could be in fuel poverty [3]. Rural communities also face higher living costs with research suggesting that living in remote rural Scotland typically adds 15-30% to a household budget [4].

Rural households face higher heating costs as many are dependent on expensive oil heating systems, with high and fluctuating upfront fuel costs. Oil heating is not regulated by Ofgem which means people with oil heating systems are not protected by the Energy Price Guarantee. In the last 12 months the cost of heating oil has doubled with prices rising from around 64p per litre to £1.20 per litre. [5]

The Scottish Government has committed to phasing out the need to install new or replacement fossil fuel boilers in areas not connected to the gas-grid, including most of rural Scotland, by 2025 [6]. Campaigners argue that more support is needed if this is to happen in a way that is fair and affordable to rural households, with help needed to increase the number of local installers.

“Helping people in rural communities to replace expensive fossil fuel heating and make their homes easier to heat must be at the heart of Scotland’s budget”, according to the Existing Homes Alliance chair, Professor Lori McElroy.

Professor McElroy goes on to say, “Working in partnership with rural stakeholder groups, we have developed a package of policies and measures that should be taken forward immediately by the Scottish Government to help make rural homes warmer and cheaper to heat. This package will help address the desperate situation that many households are facing this winter, as well as building resilience for the future.”

The £1.5 million package includes support for new collective purchase and community asset ownership models to pay for the improvements, enhanced grants and loans to cover additional insulation and running costs, and a support service for rural businesses to help them build the skills needed to decarbonise rural heating.

Bryan Leask, Chief Executive of Hjaltland Housing Association, member of the Rural and Islands Housing Association Forum said, “Rural and island communities are being hammered by some of the highest energy prices around, so ending our reliance on volatile fossil fuels for heating must be a priority.  This package of measures would help ensure a fair transition to zero emissions heating for rural communities - tackling fuel poverty, cutting emissions and supporting rural businesses.”

The Scottish Association of Landlords (SAL), which represents private landlords, has endorsed the package, adding “Private landlords provide vital housing in rural areas and need support to make sure tenants benefit from reductions in bills. SAL welcomes the Rural Homes Just Transition Package which proposes vital support mechanisms to help rural households lead the way in the transition to zero carbon heating.”  

Catriona Mallows, Campaigns and Communications Officer with Scottish Rural Action said “Many people across rural and island Scotland are facing real hardship this winter because of rising energy prices.  This package of measures would help alleviate that hardship in the short term, as well as providing the framework needed to decarbonise homes in a way that is fair and sustainable.”

Ends

For further information contact:

Gillian Campbell, Communications and Public Affairs Lead
M 07788 488801
E gillian@campbellconsulting.scot

Notes:

1.

The Existing Homes Alliance is a coalition of housing, environmental, fuel poverty, consumer and industry organisations that believes Scotland’s existing homes must be transformed to help tackle fuel poverty and climate change.

2.

The proposed Rural Homes Just Transition Package has been developed in collaboration with rural stakeholders, including Rural and Islands Housing Association Forum (RIHAF), Rural Housing Scotland, Scottish Association of Landlords, Scottish Rural Action and The Pebble Trust. The package includes measures to ensure equality for people living in rural communities and ensure that they can maximise the benefits of being at the forefront of Scotland’s transition to zero emissions heating.

3.

This is based on the most recent official statistics from 2019 and the current level of fuel poverty is likely to be higher due to people spending more time at home during the pandemic, recent energy price hikes and the cost of living crisis. 

https://www.heraldscotland.com/news/homenews/19978536.western-isles-scots-region-57-will-plunged-fuel-poverty/

4.

The Cost of Remoteness, Loughborough University Centre for Research in Social Policy, Scottish Government, September 2021. 

5.

Around 130,000 homes in Scotland use heating oil, mostly in rural communities.  Oil prices are unregulated and have doubled over the last 12 months.

Scottish homeowners could be forced to downsize due to rising cost of heating oil | ITV News Border

https://www.thesun.co.uk/money/17904251/heating-oil-bills-double-in-just-two-weeks/

­6.

The Scottish Government published a Heat in Buildings Strategy in October 2021 which sets out a vision for over 1 million homes in Scotland to convert to zero emissions heating by 2030.  As part of this plan, the Scottish Government has committed to phasing out the need to install new or replacement fossil fuel boilers in off-gas grid areas by 2025, and in on-gas grid areas by 2030. Funding for fossil fuel heating systems will be phased out from Scottish Government delivery programmes by 2024 (where it is not detrimental to fuel poverty objectives) and the Scottish Government has already ended public funding for oil and LPG heating.   

 

For further information about the Existing Homes Alliance visit www.existinghomesalliancescotland.co.uk
Existing Homes Alliance Scotland, a Scottish Charitable Incorporated Organisation, (SCIO), No SC048434


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