The Scottish Fuel Poverty Advisory Panel - Annual Report 2025-2026

In the Annual Report for 2025-2026, the Panel reflect on their delivery of the April 2025-March 2026 workplan, including their key priorities for the year: responding to Scottish Ministers' Periodic Report; exploring solutions to rural and remote fuel poverty, and setting the groundwork for a exploration of a public health approach to fuel poverty in 2026-2027.

SFPAP Annual Report 2025-2026 – Final.docx

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Foreword from the Chair

As we look back on the last year, it is clear that the challenges facing households across Scotland remain significant. Recent months have demonstrated just how vulnerable our energy system remains to events beyond our borders. While there were encouraging signs earlier this year, with falling energy prices and a welcome reduction in fuel poverty levels, albeit based on 2024 data, the renewed conflict and instability in the Middle East have once again highlighted the fragility of global energy markets and the direct impact this can have on households struggling to afford essential heating and power. These developments serve as a stark reminder that fuel poverty is not simply a consequence of individual circumstances. It is shaped by international events, volatile energy markets, the energy efficiency of our homes, and the effectiveness of public policy. Too many households remain exposed to price shocks they cannot control and cannot absorb.

Against this backdrop, the need for long-term, sustainable solutions has never been greater. Scotland’s ambition to reduce fuel poverty to 15% by 2030 remains an important and necessary goal, but as we reflected in our statutory response to Scottish Ministers’ triennial fuel poverty report, achieving it will require renewed urgency, decisive action and sustained investment. Support must continue to reach those in immediate crisis, while progress on improving the energy efficiency of homes and reducing dependence on volatile fossil fuel markets must accelerate. This support can be driven by both the Scottish or UK Governments. As we have seen through the proposed reduction in VAT on household electricity bills, change can be made quickly to provide some in year benefits.

It is in this context of uncertainty and rising concern over energy affordability that we delivered our priority work programme for the year. During 2025-26, we continued to fulfil our statutory role of advising Scottish Ministers and scrutinising progress towards Scotland’s fuel poverty targets. With a membership that expanded to six members towards the end of the year, supported by a small Secretariat, we met regularly in person and online to deliver our workplan priorities, engage with stakeholders and provide independent advice across the fuel poverty landscape.

  • A major focus of the year was our statutory response to the Scottish Government’s first triennial Periodic Report on fuel poverty (2021-2024) – completed before our new members joined us. We examined progress towards the statutory fuel poverty targets, assessed the likelihood of achieving future targets, reviewed how the four drivers of fuel poverty are being addressed, and looked forward to how a revised Fuel Poverty Strategy could better support the mitigation of fuel poverty and meeting the fuel poverty targets. Our view is that greater strategic priority must be given to fuel poverty policy, accelerating the rate of improvements to the energy efficiency of the housing stock is a prerequisite for meeting the statutory targets, alongside greater focus on affordability and more effective consideration of how energy is used in the home.
  • We also built on our previous work on rural and remote fuel poverty, publishing the findings of the work we commissioned on the lived experience of rural and remote fuel poverty. We also engaged with island local authorities and stakeholders. We examined the structural drivers that cause our island communities in Scotland to suffer the worst fuel poverty in Scotland and beyond. This work highlighted the need for more coordinated action, targeted investment, improved local delivery capacity and energy market reforms that better reflect the circumstances of remote and island communities.
  • A further priority was exploring the links between fuel poverty and health. We have undertaken research to examine how a public health approach could strengthen fuel poverty interventions. This work has identified opportunities to improve health outcomes through warmer homes, better use of data, stronger partnerships and embedding fuel poverty support within existing health services.
  • Alongside our core priorities, we have continued to advocate for a flexible energy discount mechanism, contributed to consultations and working groups, provided advice on major policy developments, supported research, and collaborated with a wide range of stakeholders. Through these activities, the Panel sought to influence policy, strengthen evidence and support progress towards the long-term goal of eradicating fuel poverty in Scotland

I would like to take this opportunity to thank our longstanding Panel members, Kirsten Jenkins, Alister Steele and Fraser Stewart – as well as new members Bryan Leask and Olivia Swann, who joined us this year, for their support, passion, and unwavering challenge. I would also like to recognise the work of the Secretariat – Roanna Sefton and Trisha Melvin and headed up by Philippa Brosnan – for their continued drive and determination to ensure that the SFPAP has a material impact.

As ever, I welcome any feedback or perspectives that you might want to share. Please do get in touch with me at enquiries@fuelpovertypanel.scot.

Matthew Cole

Scottish Fuel Poverty Advisory Panel – Chair

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