What impact the proposal in the Draft Budget 2016-17 to reduce the fuel poverty/energy efficiency budget by 13% will have on its ability to…

The Scottish Government has not proposed to reduce the domestic energy efficiency budget by 13% in 2016-17. In the budgets that we have under our control, we have broadly maintained the expenditure available for fuel poverty and energy efficiency in what is a tough financial climate. £15 million of consequentials from the UK Government’s Green Deal Home Improvement Fund cannot be added to the budget for 2016-17 because this scheme was ended earlier than expected by the UK Government as part of a series of announcements reducing support for energy efficiency.
We have allocated £103 million to tackle fuel poverty and climate change in 2016-17, which is a significant commitment in light of on-going spending pressures and UK Government cuts. This money will be used to help install energy efficiency measures, including solid wall insulation, in 14,000 homes, building on the more than 900,000 measures delivered since 2008.
The Scottish Government’s long term commitment of sustained funding over many years has helped to prevent an increase in fuel poverty in Scotland in the latest statistics (for 2014). All of the increase in fuel poverty since the target was introduced can be explained by above-inflation energy price increases. The fuel poverty rate for 2014 would have been around 9.5% instead of 35% if fuel prices had only risen in line with inflation between 2002 and 2014.
Our long-term investment is helping to improve the energy efficiency of Scotland’s homes – the share of homes rated Energy Performance Certificate band C and above has increased by 71% since 2010, and 11% in the last year. This is helping reduce greenhouse gas emissions and we are on track to meet our 42% emissions reduction target (by 2020) ahead of schedule.
The Scottish Government has confirmed energy efficiency is a national infrastructure priority and has a clear commitment to develop ‘Scotland’s Energy Efficiency Programme’ (SEEP) which will provide an offer of support to buildings across Scotland to improve their energy efficiency over the next 15-20 years. Additionally we will continue to invest over £34 million in 2016-17 in low carbon infrastructure including district heating; heat recovery; non-domestic and industrial energy efficiency which will also support the development of SEEP.
This demonstrates the Scottish Government’s short, medium and long term commitment to improving energy efficiency in Scotland.