SUSTAINABLE HOUSING ADVICE NOTE:
FUEL POVERTY AND CLIMATE CHANGE
February 2016
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CONTENTS
1. Overview – Purpose of this Advice Note
2. Fuel Poverty
The Scottish Government Fuel Poverty Target
Definition of Fuel Poverty
Satisfactory Heating Regime
Factors that Influence Fuel Poverty
Progress Towards Target
Local Authority Fuel Poverty Strategy Statutory Obligations
3. Climate Change
The Climate Change (Scotland) Act 2009
What affects emissions from the residential sector?
Adaptation
Progress towards the targets
4. Standards
Social Housing Standards
Energy Efficiency Standards in Private Sector Homes
5. Sources of Support for Tackling Fuel Poverty and Climate Change
Scottish Government Funding and Programmes
Scotland’s Energy Efficiency Programme (SEEP)
UK Schemes
European Funding
Organisations & Funding Supporting Fuel Poverty Work
Data
6. LHS Content
Establishing the Causes and Extent of Fuel Poverty
Establishing Key Risk Factors
Establishing how housing can contribute to climate change
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Outline of bid for HEEPS: ABS funding
Actions to improve energy efficiency across all tenures
Establishing links to plans for energy infrastructure
New Homes
Climate Change Adaptation
LHS Outcomes & Action Plan
Annex A – outcomes template
Annex B – worked example of template for recording outcomes in the LHS
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SUSTAINABLE HOUSING ADVICE NOTE: FUEL POVERTY AND
CLIMATE CHANGE
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Overview
Climate change and fuel poverty are key priorities for Scottish Ministers. The
Scottish Government is committed to the target that by the end of November 2016,
as far as is reasonably practicable, no-one in Scotland is living in fuel poverty. The
Climate Change (Scotland) Act 2009 requires Scottish greenhouse gas emissions to
be reduced by 42% by 2020 and at least 80% by 2050, compared to 1990 levels.
Local Authorities can make an important contribution to the achievement of the
Scottish Government’s fuel poverty and climate change targets. Through both their
strategic role and their wealth of local knowledge and local action they have a
significant part to play in ensuring that people live in warm, dry, energy efficient, low
carbon homes which they can afford to heat.
This advice note has been prepared by the Scottish Government to provide
additional information and advice to assist Local Authorities take forward work to
address fuel poverty and climate change in their Local Housing Strategies. It relates
to and supplements the Local Housing Strategy Guidance.
2
Fuel Poverty
The Scottish Government Fuel Poverty Target
The eradication of fuel poverty is a priority within the Housing (Scotland) Act
20011. Section 88(1) of the 2001 Act requires Scottish Ministers to, “publish a
statement setting out the measures which they and local authorities have taken, are
taking and intend to take for the purposes of ensuring, so far as reasonably
practicable, that persons do not live in fuel poverty”. The Act requires the statement
to set a target date for achieving this, which must be within 15 years of the date of
publication of the statement.
1
http://www.legislation.gov.uk/asp/2001/10/contents
4
The Fuel Poverty Statement, published in 2002, set 2016 as the target date to
eradicate fuel poverty as far as is reasonably practicable. The last review –
Progress Report on the Scottish Fuel Poverty Statement 2002 – was published in
December 2014. 2
Definition of Fuel Poverty
Section 95 of the Housing (Scotland) Act 2001 defines a household as being fuel
poor if it is living in a home which cannot be kept warm at reasonable cost. The
Scottish Fuel Poverty Statement refines this definition to say a household is in fuel
poverty if, in order to maintain a satisfactory heating regime, it would be required to
spend more than 10% of its income (including Housing Benefit and Income Support
for Mortgage Interest) on all household fuel use. This more precise definition assists
the monitoring of progress and is the definition against which Scottish Government
fuel poverty policy objectives are measured. The LHS guidance encourages local
authorities to use this definition in the development of their LHS.
Satisfactory Heating Regime
The currently accepted satisfactory heating regime means achieving for elderly and
infirm households a temperature of 23ºC in the living room and 18ºC in other rooms,
for 16 hours in every 24. For other households a temperature of 21ºC in the living
room and 18ºC in other rooms should be achieved, for a period of 9 hours in every
24 (or 16 in 24 over the weekend) – with 2 hours being in the morning and 7 hours in
the evening.
The independent Scottish Fuel Poverty Forum undertook research into the
underlying assumptions within the 10% definition to ensure it is still robust. The
Forum considers the outcome of the research to be useful but it does not provide
informed reason to change any of the underpinning values of the definition at this
time.
2
http://www.gov.scot/Publications/2015/01/2420
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Factors that Influence Fuel Poverty
The Scottish Government Fuel Poverty Statement identifies three main factors that
influence the level of fuel poverty:

fuel prices

household incomes

energy efficiency of the housing stock
It is important to note that the relationship between the three main causes of fuel
poverty is a dynamic one so the relative importance of each factor varies depending
on the period examined.
The definition of fuel poverty and its inter-dependence with these factors means that
a household can move into, or out of fuel poverty at different times and for a variety
of different reasons. For example, a person who stops work temporarily to
undertake a course of study may move into fuel poverty and then move back out of
fuel poverty on their return to employment. A household may be brought into fuel
poverty when fuel prices rise, but leave fuel poverty when these fall.
Progress Towards Target
Progress towards the target is measured through the Scottish House Condition
Survey (SHCS). The latest Fuel Poverty statistics published in December 2015
showthat despite average fuel prices increasing by 3.5% between 2013 and 2014,
fuel poverty levels remained broadly the same, with 845,000 (34.9%) households
being in fuel poverty in 2014. It is critical that all stakeholders work together to tackle
the issue.
Local Authority Fuel Poverty Strategy Statutory Obligations
Although separate strategies for homelessness, housing support and fuel poverty no
longer need to be submitted to Scottish Ministers, there remains a statutory
duty on local authorities under the 2001 Housing (Scotland) Act to address those
areas. Section 89(5)(b) of the Act requires Local Authorities to develop Local
Housing Strategies which, among other things, ensure, “so far as reasonably
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practicable that persons do not live in fuel poverty.” This obligation relates to all
housing tenures.
The LHS guidance sets out the expectation that fuel poverty issues will be fully
integrated into the Local Housing Strategy. This should be more than a paper
exercise, it is about achieving integrated strategic thinking across all housing and
related areas to maximise the gains which can be made in tackling fuel poverty and
on the related issues of climate change and BTS housing. It should be noted that
action to address fuel poverty can often be linked to action on a range of other
issues such as climate change and house condition.
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Climate Change
Climate change is one of the greatest global threats we face. Addressing it is vital,
and concerted and co-ordinated action across the board – in public and private
sectors, by central and local government, and at individual and community level – is
required. Local authorities have a key part to play in achieving a shift towards a
more sustainable, low-carbon economy.
Between January and April 2007, all of Scotland's 32 local authorities signed up to
Scotland's Climate Change Declaration. Signatories to Scotland's Climate Change
Declaration acknowledged the reality and importance of climate change and
committed themselves to:

mitigating their impact on climate change through reducing greenhouse gas
emissions

taking steps to adapt to the unavoidable impacts of a changing climate

working in partnership with their communities to respond to climate change
The Declaration recognised that Scottish local authorities play a key role in our
collective response to the challenge of climate change, and publicly demonstrated
their commitment to action.
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The Climate Change (Scotland) Act 2009
The Climate Change (Scotland) Act 2009 is the most ambitious piece of climate
change legislation in the world aimed at facilitating the transition to a low carbon
economy. The Climate Change (Scotland) Act:

creates a statutory framework for reducing greenhouse gas emissions; sets
mandatory emissions reduction targets for 2020 and 2050, and requires
Scottish Ministers to set annual emissions and energy efficiency targets 3; and

includes measures relating to adaptation
Section 44 of the Act places duties on public bodies relating to climate change. The
duties require that a public body must, in exercising its functions, act:

in the way best calculated to contribute to delivery of the Act’s emission
reduction targets

in the way best calculated to deliver any statutory adaptation programme

in a way that it considers most sustainable
The Scottish Government has provided guidance to public bodies to assist them in
fulfilling their duties. The Public Bodies Climate Change Duties Guidance4
recognises the importance of housing in efforts to reach the overall emission
reduction targets set in the Act. A key message of the Guidance is that public bodies
should address climate change in their main business planning activities, and the
LHS has an important role in linking action on climate change with mainstream
housing and fuel poverty policies, and in defining the overall outcomes sought in the
sector.
Scotland’s Sustainable Housing Strategy sets out the Scottish Government’s vision
for warm, high quality, affordable, low carbon homes and a housing sector that helps
3
These and related targets include that by 2020 total final (or end-use) energy consumption in
Scotland is reduced by 12% (against a baseline of the average final energy consumption in 2005-7)
and 11% of non-electrical heat demand is delivered by renewable sources.
4 Published on 4 February 2011, see Public Bodies Climate Change Duties: Putting Them Into
Practice - Guidance Required by Part 4 of the Climate Change (Scotland) Act, available on the
Scottish Government website.
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establish a low carbon economy. It draws together what we are doing to incentivise
people to install energy efficiency measures; examines the roll of standards in both
the private and social housing sectors; and considers the potential for transforming
the market for sustainable housing. The strategy outlines aims, to be met by 2020,
and includes:
1. Every home to have loft and cavity wall insulation (where cost effective/
technically feasible) and draught proofing measures such as pipe lagging.
2. Every home heated with gas central heating to have a highly efficient boiler
with appropriate controls.
3. At least 100,000 homes to have adopted some form of individual or
community renewable heat technology for space and/or water heating.
In June 2015 the Scottish Government published its Heat Policy Statement5 setting
out our approach to deliver an affordable and effective heating and cooling
framework for Scotland through to 2050. The Policy Statement includes Scottish
Government’s ambition for district heating including having 40,000 homes connected
to district heating or communal heating by 2020. It also sets out activity to support
Scotland’s ambitious target that by 2020 11% of heat non-electrical heat demand
should be met by renewable sources.
What affects emissions from the residential sector?
In 2011, the residential sector accounted for almost 25% of Scotland’s greenhouse
gas emissions. The greenhouse gas emissions of a household are influenced by:

a property’s condition – houses in a state of disrepair use more energy to
heat and are harder to keep warm.

a property’s energy efficiency rating – houses with a poor energy efficiency
rating (EPC G and F) use more energy to heat than the most efficient
properties (EPC A and B). A property’s energy efficiency is affected by the
presence (or absence) of measures such as loft and cavity wall insulation.
5
Heat Policy Statement, Towards decarbonising heat: maximising the opportunities for Scotland:
http://www.gov.scot/Publications/2015/06/6679
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
how a property is heated – the type of fuel used to heat a property can
affect its greenhouse gas emissions e.g. oil heated homes have higher
emissions than those heated by gas, whilst low-carbon or renewable heat
sources, for example heat pumps, biomass, solar thermal, connection to low
carbon or renewable district heating, etc. offer even lower carbon emissions.
The age and efficiency of heating devices, e.g. gas boilers, also affects the
level of emissions.

occupant behaviours – the way people operate their homes can affect
carbon emissions, e.g. not using the heating thermostat and programmer
efficiently, leaving lights on unnecessarily, etc.
Adaptation
Scotland is already feeling the effects of climate change, with rising temperatures
and more frequent extreme weather events affecting our lives, the environment and
the economy. Much of the change to the climate over the next 30-40 years is
already determined by our past and present emissions. As such we need to adapt to
our changing climate. Adaptation means the adjustment in economic, social or
natural systems in response to actual or expected climate change, to limit
harmful consequences and exploit beneficial opportunities. By planning and
preparing for change now, Scotland will be better placed to adapt to the threats and
take advantage of the opportunities as we look to build the low-carbon economy of
the future.
The UK Climate Change Risk Assessment for Scotland, published in 2012, provides
an assessment of the current and predicted threats and opportunities from climate
change facing Scotland up until 2100. A range of impacts is identified. The biggest
threats to the built environment are flooding, landslips, and damage to property from
rain penetration, overheating and mould/algal growth. Historic buildings may be
particularly vulnerable to a changing climate.
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The Scottish Government’s first statutory Climate Change Adaptation Programme6,
published in May 2014, sets the strategic direction for Scottish Government action.
However, as many adaptation decisions are taken at a local level by individual
organisations, action is needed across all sectors.
Progress towards the targets
Progress towards the climate change targets is measured through the National
Atmospheric Emissions Inventory (NAEI) and the Scottish House Condition Survey
(SHCS). In 2011, 7.0 MtCO2e was directly (i.e. not including electricity) emitted by
the residential sector, accounting for 13.5% of Scotland’s total emissions. The
sector’s direct emissions have fallen by 12.4% between 1990 and 2013. When
electricity use is included the residential sector accounts for around a quarter of
Scotland’s emissions.
The proportion of dwellings with a good EPC rating (B and C) has increased steadily.
In 2014 two in five dwellings had an EPC rating of C and above, an increase of 71%
since 2010 and 11% in the last year. The proportion of dwellings with a moderate
EPC rating (D and E) has decreased in parallel, from 70% in 2010 to 56% in 2014.
Over the period 2010-2014, there has also been a decrease in the proportion of
properties with the lowest EPC ratings – 3% of properties were rated F or G in 2014
compared with 6% in 2010. In 2014, only 1% of lofts had no insulation. In 2014,
62% of dwellings with loft insulation had insulation with a depth of 200 mm or more.
In 2014 71% of cavity walls had been insulated, and 14% of solid walled dwellings
had insulation.
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Standards
Social Housing Standards
The Scottish Housing Quality Standard (SHQS) requires all social landlords (both
local authority and Registered Social Landlords) to achieve a minimum level of
housing quality (which includes energy efficiency) by April 2015. Among other things
the SHQS states that local authorities should install effective insulation and full,
6
http://www.scotland.gov.uk/Publications/2014/05/4669
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efficient central heating in their stock. The SHQS target is included in the Scottish
Social Housing Charter and landlords’ progress towards meeting this target is
monitored by the independent Scottish Housing Regulator. SHQS is funded through
social landlords’ investment plans, including prudential borrowing by local authorities.
The Energy Efficiency Standard for Social Housing (EESSH) published in March
2014 sets out the minimum energy efficiency ratings landlords will be expected to
meet across their housing stock. The ratings vary depending on the dwelling type
and the fuel type used to heat the property. The first milestone is set for 2020, future
milestones will be determined as part of a review of EESSH which is scheduled for
2017. The EESSH does not set prescribed measures but leaves it to individual
social landlords to identify the most cost effective measures to ensure the required
ratings are achieved. A dedicated EESSH website has been developed to provide
advice and support for landlords and tenants.7
Energy Efficiency Standards in Private Sector Homes
Scotland’s Sustainable Housing Strategy, published in June 2013, set out a
commitment to consult on draft regulations that would set a minimum energy
efficiency standard for private sector housing. A Stakeholder Working Group has
been developing proposals for regulations and the aim was to consult on proposals
in 2015. However, UK announcements have created uncertainty around energy
efficiency funding, affecting the Scottish Government’s ability to consult meaningfully
on proposals for minimum standards for the private sector at this time. The Scottish
Government is continuing to work with stakeholders to further refine proposals for
consultation and Ministers are committed to consulting in the next parliamentary
session.
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Sources of Support for Tackling Fuel Poverty and Climate Change
This section provides advice and information on financial and other resources
available to assist Local Authorities address fuel poverty and climate change in their
LHS. In preparing their LHS Local Authorities may find it helpful to consider how to
7
http://www.energyefficientsocialhousing.org/
12
make use of these resources so as to achieve the maximum contribution to tackling
fuel poverty and reducing greenhouse gas emissions.
Scottish Government Funding and Programmes
The Scottish Government has continued to honour its commitments to eradicate fuel
poverty and reduce greenhouse gas emissions by way of support and funding to
tackle the problem. The Scottish Government continues to support Local Authorities
in Scotland to deliver local, area-based energy efficiency schemes, through the
Home Energy Efficiency Programmes for Scotland (HEEPS).
The Scottish Government has created the HEEPS programmes, using Scottish
Government funding to lever in additional investment to improve the energy
efficiency of housing and tackle fuel poverty. HEEPS were launched on 1 April 2013
and offer a package of support to help all those who are struggling to pay their
energy bills and keep themselves warm. The bulk of the HEEPS funding goes to
support the Area Based Schemes (HEEPS: ABS). HEEPS: ABS is delivered by
Local Authorities and prioritises fuel poor areas, providing a range of insulation
measures that will make Scottish homes warmer and easier and cheaper to heat, as
well as reducing greenhouse gas emissions. Funding is awarded to Local
Authorities through a combination of:
i.
a needs-based allocation calculated with reference to relative levels of fuel
poverty, and
ii.
a review of proposals against the objectives of the scheme, together with fit
with local housing strategy and capacity to spend.
There is also:
HEEPS: Warmer Homes Scotland – the new national scheme which replaced the
Affordable Warmth Scheme and Energy Assistance Scheme. It launched in
September 2015 and works alongside the other HEEPS schemes to give more
vulnerable households living in fuel poverty access to measures to make their homes
more energy efficient.
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HEEPS: Loan Scheme – which is available to all private sector households in
Scotland, offering interest free loans of up to £10,000 per household for the purpose
of installing energy efficiency measures in their homes. HEEPS: Loans can be
combined with both ECO and with HEEPS: ABS.
Details of all schemes can be found on the Energy Saving Trust website8.
Home Energy Scotland provides free and impartial advice to all householders in
Scotland and ensures they can be referred through the most appropriate scheme
specific to their personal circumstances. This includes referrals to, among others:
o Area Based Schemes
o Warmer Homes Scotland Scheme
o Income maximisation, including referrals to the Warm Home Discount and
benefit maximisation
Other Scottish Government schemes are also available to projects that reduce
greenhouse gas emissions, including:

The Climate Challenge Fund9 is a Scottish Government programme
administered by Keep Scotland Beautiful. It provides grant funding for
community groups across Scotland to reduce carbon emissions and to increase
their communities’ resilience to climate change. Eligible community projects
include local energy efficiency advice to households and energy efficiency
improvements to community owned buildings.

The District Heating Loans Fund is a Scottish Government fund providing loans
for low carbon and renewable technologies to help organisations implement
district heating projects to benefit local communities. Low interest loans of up to
8
http://www.energysavingtrust.org.uk/scotland/Take-action/Find-a-grant/Green-Homes-CashbackScheme
9
www.keepscotlandbeautiful.org/sustainability-climate-change/climate-challenge-fund/
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£400,000 per project, to be repaid over 10 years, are available to local
authorities, RSLs, SMEs and Energy Service Companies (ESCOs). EST
administers the fund on behalf of the Scottish Government. This year we
announced that applications from large-scale projects for loans greater than
£400,000 will be considered on a case by case basis.

The Home Renewables Loan Fund is a Scottish Government scheme that
provides interest free loans of up to 75% of the total cost up to £10,000 for the
supply and installation of a domestic renewables system or connection to a
district heating system. It is eligible to owner occupiers for existing residential
buildings. The value and terms of the loan varies by technology. The Home
Renewables Loan scheme was boosted with a further £5 million in 2014/15 and
a further £3 million this year(2015/16). Home Energy Scotland can provide
impartial advice.
The Scottish Government will continue to provide an extra £4,000 funding through
the Affordable Housing Supply Programme for every affordable rented home
meeting Section 7, Silver Level, of the 2011 Building Regulations in respect of both
Carbon Dioxide Emissions and Energy for Space Heat.
Scotland’s Energy Efficiency Programme (SEEP)
Energy efficiency is a priority for the Scottish Government and in recognition the
Minister for Environment, Climate Change and Land Reform announced on 9 June
2015 that the Scottish Government will be designating energy efficiency as a
National Infrastructure Priority. Further detail will be set out in a refreshed
Infrastructure Investment Plan later in 2015. The cornerstone of the infrastructure
priority will be Scotland’s Energy Efficiency Programme (SEEP), which will provide
an offer of support to all building in Scotland – domestic and non-domestic – to
improve their energy efficiency rating over a 15-20 year period.
The detail of the programme still needs to be developed and will not be able to
commence until the full range of powers recommended by the Smith Commission
are in place. We will be working with stakeholders over the next couple of years,
before launching the new programme in 2018.
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UK Schemes
There are also a number of schemes administered by the UK Government that are
designed to encourage households to reduce their greenhouse gas, including:

The Energy Company Obligation (ECO) is a UK Government scheme placing a
legal obligation on larger energy suppliers to deliver energy efficiency measures
to domestic users with a particular focus on vulnerable consumer groups .

Feed-in-tariffs (FITs) are a UK Government scheme which provides financial
incentives to owners of eligible electricity-generating technology, e.g. solar PV,
wind turbines, etc. FITs are paid for the electricity you generate. Ofgem
administer the scheme.

The Renewable Heat Incentive (RHI) is a UK Government scheme which provides
financial incentives to owners of eligible renewable heating systems. The domestic
RHI is available for installations in homes and the non-domestic RHI can support
technologies providing heat to district heating systems. The domestic RHI supports
air and ground source heat pumps, biomass systems and solar thermal
technologies. Tariffs vary depending on technology. The domestic RHI is open to
owner occupiers, private landlords and RSLs who have installed an eligible
technology since 15th July 2009. Ofgem is administering the scheme. The nondomestic RHI is available to public and private sector organisations, including RSLs
and LAs, for heat generating technologies that can supply district heating networks.
European Funding
Local Authorities may consider the options available under European Union funding .
There are a range of European funds including:

JESSICA – funding for renewable energy in urban development schemes. The
£50m Scottish Partnership for Regeneration in Urban Centres (SPRUCE) Fund is
a JESSICA (Joint European Support for Sustainable Investment in City Areas)
UDF (Urban Development Fund) that is a source of funding for regeneration and
energy efficiency projects within targeted areas of Scotland.10 The SPRUCE fund
has been established with funding from the Scottish Government and the
European Regional Development Fund. The fund provides affordable, flexible,
repayable loans for project sponsors. Applications can come from any public or
10
http://www.ambergreenspruce.co.uk/
16
private organisation, however, money can only be invested in projects taking
place in one of the following 13 Scottish local authority areas:
Clackmannanshire, Dundee, East Ayrshire, Edinburgh, Fife, Glasgow, Inverclyde,
North Ayrshire, North Lanarkshire, Renfrewshire, South Lanarkshire, West
Dunbartonshire and West Lothian.

European Regional Development Fund. The 2014-2020 European Regional
Development Programme in Scotland is currently being developed. It is likely
that supporting the shift towards a low carbon economy and promoting resource
efficiency will be amongst its priorities. There may be opportunities for funding
projects that contribute towards these objectives.
Organisations Supporting Fuel Poverty and Climate Change Work
Energy Saving Trust
Energy Saving Trust11 is a social enterprise group with a charitable Foundation,
funded both by government and the private sector. In Scotland the Energy Saving
Trust is funded by the Scottish Government.
Energy Saving Trust gives impartial, accurate and independent advice to
households, communities and organisations on how to reduce carbon emissions,
reduce fuel bills, use water more sustainably and drive smarter. As part of this work
the Energy Saving Trust manages the Home Energy Scotland advice centres
network, a national network of advice centres that are staffed by independent
experts.
Home Energy Scotland Advice Centres
Home Energy Scotland (HES) is a network of local advice centres across Scotland,
funded by the Scottish Government. By working in conjunction with the HES advice
centres and local initiatives, Local Authorities can optimise opportunities for
promoting assistance to fuel poor households. Local Authorities can direct
households with fuel poverty related issues to the free Home Energy Scotland
hotline on 0808 808 2282. Advisors there will provide callers with free impartial
11
http://www.energysavingtrust.org.uk/scotland
17
energy advice, offer benefits checks and will explain about any assistance the caller
may be eligible for under the Home Energy Efficiency Programmes for Scotland
(HEEPS). In addition Local Authorities can use their HEEPS: ABS enabling funding
to pay the HES advice centres to carry out marketing for their schemes.
Energy Action Scotland
Energy Action Scotland12 is the national charity which works to ensure warm, dry
homes and aims to eliminate fuel poverty in Scotland. Its members include
energy/debt advisers, Local Authorities, housing associations, health bodies, fuel
utilities, insulation/heating companies, trade unions, regulatory bodies, voluntary
organisations and individuals.
Energy Action Scotland provides training, advice and support to Local Authorities in
the development and delivery of their Local Housing Strategies, to ensure that fuel
poverty policies at a local level are robust and in line with the desired Government
direction.
The Scottish Fuel Poverty Forum
Fuel Poverty is a devolved issue and the Scottish Fuel Poverty Forum13 was first set
up in 2002 to contribute to carrying out the work outlined in the Scottish Fuel Poverty
Statement published that year.
As well as monitoring the delivery of Scottish Government fuel poverty and energy
efficiency programmes, the Forum also gives Ministers independent advice on how
best to achieve the statutory duty to end fuel poverty, as far as is reasonable
practicable, by 2016 and engages with Fuel Poverty Advisory Groups in other parts
of the UK on reserved matters affecting fuel poverty to ensure Scottish interests are
fed into reserved policy areas.
The main finding of the Forum’s interim report on the Review of the Scottish
Government’s fuel poverty strategy, published in 2012, was the need for a national
12
http://www.eas.org.uk/
13Fuel
Poverty Forum, http://www.scotland.gov.uk/Topics/BuiltEnvironment/Housing/warmhomes/fuelpoverty/ScottishFuelPovertyForum
18
retrofit programme (NRP) to upgrade Scotland’s ageing housing stock and tackle
fuel poverty. The NRP has been developed and is now operational as the Home
Energy Efficiency Programmes for Scotland (HEEPS).
The final report on the Review was published on 24 March 2014 can be found at the
link below.14.
The role of the Forum has recently been refocused to fit the needs of the current
policy landscape and a new, short life, Strategic Working Group, was set up in
November 2015. This Working Group, which is independently Chaired, will work
together with the Scottish Rural Fuel Poverty Task Force and the Fuel Poverty
Forum to drive forward the elimination of fuel poverty. The Working Group will report
to Ministers at the end of 2016 and will, among other things, look at how the new
powers being devolved to Scotland can best be deployed to improve energy
efficiency and tackle fuel poverty.
The Scottish Rural Fuel Poverty Task Force
In the autumn of 2015 the Minister for Housing and Welfare announced the creation
of the Scottish Rural Fuel Poverty Task Force. This short life working group has the
remit of producing a report highlighting the issues around fuel poverty in rural,
remote, off gas grid areas and to propose solutions. These solutions will feed into
the ongoing development of fuel poverty policy and inform new energy efficiency
programmes. The task force is made up of representatives from a range of
organisations with an interest in energy efficiency and fuel poverty in Scotland's
more remote area and is an independently chaired group.
Scottish Government’s Heat Network Partnership
The Heat Network Partnership brings together key Scottish Government agencies
working to support the public sector, business and industry, community and
households develop district heating networks. The Heat Network Partnership coordinates support for district heating and helps to bring together best practice,
guidance and knowledge-sharing to accelerate the uptake of district heating in
14Fuel
Poverty Forum Final Report, http://www.scotland.gov.uk/Topics/BuiltEnvironment/Housing/warmhomes/fuelpoverty/ScottishFuelPovertyForum/final-report
19
Scotland15. We are seeing a developing pipeline of projects, some of which are
supported through the Low Carbon Infrastructure Transition Programme.
Low Carbon Infrastructure Transition Programme
The Low Carbon Infrastructure Transition Programme (LCITP), supported by
European Structural Funds, was launched on 20 March 2015. The LCITP is a
Scotland-wide, collaborative cross-sector project development unit with the aim of
accelerating the number of low carbon infrastructure projects in Scotland to
investment readiness stage. With £76 million over the first three years, the ambition
is to provide an integrated programme of advice and support to over 100 low carbon
projects.
Adaptation Scotland
The Adaptation Scotland16 programme provides advice and support to help
organisations, businesses and communities in Scotland prepare for, and build
resilience to, the impacts of climate change. It is a programme funded by the
Scottish Government and currently delivered by Sniffer. Adaptation Scotland offers
free access to the best quality data on climate trends and their impacts in Scotland
as well as access to tools, guidance and advice on adapting to the impacts of a
changing climate.
Adaptation Scotland can provide advice and support to help the public sector, private
sector and communities build capacity and take action to adapt to the impacts of
climate change.
Data
Scottish House Condition Survey
The Scottish Government measures progress towards its fuel poverty target through
data supplied by the Scottish House Condition Survey (SHCS)17. The SHCS is a
useful set of data to identify the extent, location and nature of fuel poverty both
15Heat
Network Partnership, www.districtheatingscotland.com
Scotland, http://www.adaptationscotland.org.uk/1/1/0/Home.aspx
17 Scottish House Condition Survey, http://www.scotland.gov.uk/Topics/Statistics/SHCS
16Adaptation
20
nationally and at a Local Authority level. 18 It is also a key source of information on
the energy efficiency of existing housing stock and can provide some information on
the factors likely to be more prevalent in households in fuel poverty.
The Scottish House Condition Survey (SHCS) is a national housing survey
undertaken in Scotland. It combines both a physical inspection of dwellings and an
interview with occupants to build a picture of Scotland’s housing stock which covers
all types of dwellings whether owned or rented, flats or houses across the entire
country. The SHCS is published annually.
Scotland Heat Map
Heat mapping is a powerful way to visualise and assess who needs heat, where
sources of heat might come from and how these can be connected in an efficient
way to reduce the cost of heat supply and the carbon intensity of heat generation. It
can also be used, in combination with other spatial datasets, as a tool to focus on
areas of need or priority and to identify potential projects such as large or small scale
delivery of low carbon, low cost heat to households. The Scotland heat map is a
partnership project with data contributions from public and private sector bodies.
Every local authority has received the heat map dataset for their area19 to support
local energy planning and related documents such as Local Housing Strategies.
Using the heat map as a foundation, the Heat Network Partnership20 has rolled out a
District Heating Strategy Support Programme, running a series of workshops in 2015
for local authorities to support them through a structured process to develop district
heating strategies. This included using the heat map and local knowledge to allow
them to identify the source of both heat supply and demand and identifying if the
circumstances are appropriate for potential district heating projects. To further assist
authorities and other public sector organisations the Scottish Government have
18
Link to breakdown of fuel poverty by Local Authority area http://www.scotland.gov.uk/Topics/Statistics/SHCS/keyanalyses
19 Further details including the Framework agreement and a public version of the heatmap are at
www.scotland.gov.uk/heatmap
20 See: www.districtheatingscotland.com
21
provided an interactive tool21 identifying the opportunities for district heating
associated with the public sector estate to help enhance strategic planning.
Energy Saving Trust Home Analytics
Home Analytics is a service from the Energy Saving Trust that provides essential
data and analysis on the UK housing stock to help target retrofit activity. Home
analytics is an address-level profile of all 26 million homes in the UK in terms of their
potential for retrofit measures and key property attributes. It also includes a fuel
poverty indicator down to address level.
The Scottish Government has purchased licenses for Home Analytics on behalf of
local authorities. It can be useful in setting targets for fuel poverty action plans.
6
LHS Content
The Local Housing Strategy guidance sets out the expectation that local authorities
in developing their LHS should regard to the requirements flowing from the Climate
Change (Scotland) Act. In practice this includes the sectoral proposals and policies
reflected in the Report on Proposals and Policies, the National Planning Framework
and Scottish Planning Policy, the Heat Policy Statement and Scotland’s Sustainable
Housing Strategy. Local authorities may find it useful to consider the following
developing their LHS.
Establishing the Causes and Extent of Fuel Poverty
The LHS guidance sets out the requirement for defining the extent, location and
nature of fuel poverty in their area, to establish the contributing factors which
influence local levels of fuel poverty and to establish the root causes of fuel poverty
as these may differ from national trends.
Being able to determine the risk of fuel poverty is of considerable value when
developing effective identification strategies. It will be important for local authorities
21
Tool was developed during analysis undertaken of the Scotland National Heat Map to identify
opportunities for district heating networks associated with the public sector estate. The analysis report
is available at http://www.gov.scot/HeatMap - go to the “Use the map” section of this page.
22
to identify geographic concentrations of fuel poverty in their areas and assess those
risk factors which are more predominant in them.
Local Authorities may wish to use locally gathered information, particularly where this
is more recent than then SHCS. Where locally gathered information is used, local
methodologies must be at least as accurate in terms of the range and types of data
collected and achieve the same level of quality in the way that the data is collected.
More information on the definition and measurement of fuel poverty and on which
characteristics of households and properties increase the risk of fuel poverty can be
found on the SHCS website.22 The Fuel Poverty Evidence Review23 provides a
more detailed analysis of fuel poverty in Scotland.
Establishing Key Risk Factors
Local Authorities may want to consider what social, economic and environmental
factors exist locally which exacerbate the risk of fuel poverty and consider whether
there are any particular or unique factors that influence fuel poverty in the local area
that are either not present, or are less of an issue, for Scotland as a whole.
It should be stressed that risk factors associated with fuel poverty are generally
based on trends observed from the national survey. It is important that Local
Authorities are in a position to test those observations locally before making any
strategic decisions on action to eradicate fuel poverty. Local Authorities may wish,
for example, to consider the specific issues that arise for fuel poor households in
rural areas and develop plans to tackle these. Access to a relatively inexpensive fuel
type clearly has a significant effect on the risk of fuel poverty. Local Authorities can
have an important role as a catalyst for extension or infill of the gas mains pipeline
where practical. This may however be a wider issue than simply access to mains
gas; there are particular logistical challenges in some areas of Scotland particularly
in rural and island locations. Ofgem recently announced that the Fuel Poor Network
Extension Scheme is also being extended to support district heating solutions (where
gas Combined Heat and Power is the heat source) to assist more vulnerable and low
22
23
http://www.scotland.gov.uk/Topics/Statistics/SHCS
http://www.scotland.gov.uk/Topics/Statistics/SHCS/FPEvidenceReview
23
income households. The promotion of low carbon heat and renewables is expected
to become increasingly important in these areas.
Similarly Local Authorities may want to consider the options for tackling fuel poverty
in areas which are income deprived, but which have a relatively good housing stock.
The Fuel Poverty Statement considers fuel poverty to be a subset of general poverty,
with fuel poor households most likely also to be low income households. Initiatives
that help to raise the level of household income therefore and also perhaps reduce
the cost of fuel for the occupier are important parts of any comprehensive strategy
for addressing fuel poverty24. Ensuring that households which are eligible for
benefits are claiming everything they are entitled to is a very effective way of
improving household income and therefore tackling fuel poverty. This should also
focus on the uptake of tax credits and the winter fuel payment and also the Scottish
Welfare Fund and Discretionary Housing Payments delivered by Local Authorities.
Establishing how housing can contribute to climate change
In developing their LHS local authorities are expected to “Establish how housing
contributes to climate change, considering house condition, characteristics of stock,
local levels of energy efficiency and scope for improvement”. Local authorities will
want to develop a good understanding of the housing stock in their area to establish
the extent to which it can be improved in order to reduce greenhouse gas emissions.
This is likely to include: house condition, characteristics of the stock e.g. type,
age, construction, current levels of energy efficiency, scope for improvement.
Local authorities may also wish to note the proportion of social housing stock that
meets the SHQS and the EESSH, as well as the number of households in their area
that have adopted some form of individual or community renewable heat technology
for space and/or water heating.
Outline of bid for HEEPS: ABS funding
The Local Housing Strategy should outline the local authority’s bid for HEEPS:
ABS funding, including what the funding will be used for, where it will be targeted
24
See section on HES advice centre below
24
and what it is expected to deliver in terms of outcomes (both fuel poverty and climate
change).
Actions to improve energy efficiency across all tenures
Good progress has been made in improving energy efficiency in the social housing
sector. Local authorities and RSLs have been working to meet the Scottish Housing
Quality Standard by 2015 and will be required to be compliant with the Energy
Efficiency Standard for Social Housing (EESSH) by 2020. In accordance with the
LHS guidance local authorities may wish to outline works underway to meet the
SHQS and EESSH in their LHS.
Compared with the social sector, progress on energy efficiency in the owneroccupied and private rented sectors has been slower. Local authorities will wish to
consider how they can help to maintain the rate of improvement in the social
sector, whilst accelerating it in the private sector. In addition, local authorities
may find it useful to set out in their LHS how they intend to maximise the uptake
of the available support to householders and property owners.
Establishing links to plans for energy infrastructure
Local authorities may wish to set out in their Local Housing Strategy how
housing in their area will help achieve plans or strategies they have for major
energy infrastructure, for example, identifying the exploitation of low cost unused
excess industrial heat (sometime referred to as waste heat) or renewable heat,
and/or plans to link together systems which could serve both housing and nondomestic properties. They may wish to signpost other strategy documents they have
published which may set out these ambitions such as local development plans,
district heating strategies or energy, heat or climate change plans. Low carbon
energy infrastructure could include:

district heating systems

microgeneration

community renewables projects
25
New development or major refurbishment work should be future-proofed to ensure
that connections to existing or planned heat networks are taken forward as soon as
they are viable.
New Homes
More than half a million extra homes are likely to be needed in Scotland to meet
demand by 2035, according to the National Records of Scotland projections.
Scotland’s Sustainable Housing Strategy sets out the Scottish Government’s
ambition to promote the ability of design and offsite modern methods of construction
to meet future targets on energy use and carbon emissions. The use of offsite
modern methods of construction is steadily increasing and we have supported its
mainstream implementation through initiatives such as the Greener Homes
Innovation Scheme.
The Scottish Government understands there are a number of advantages and
benefits to utilising offsite modern methods of construction and encourage Local
Authorities to look at how they can utilise innovative modern techniques in their
supply programmes. Research undertaken by Homes for Scotland provides
evidence that Local Authorities are in a position to utilise some of benefits to be
gained by offsite construction. Benefits include speed of construction and improved
control over quality, cost and energy efficiency.
The recently launched Construction Scotland Innovation Centre Offsite Hub will
assist Local Authorities in making links to available expertise. More details on the
Hub can be found at www.constructionscotland.org.uk/offsite.
We are currently looking at potential future incentives for exceeding current building
standards.
Climate Change Adaptation
The Local Authority should seek to understand how a changing climate may affect
the housing stock. The Local Housing Strategy should identify threats and
opportunities, the vulnerability of different groups to climate risks, and set out
and prioritise what needs to be done to manage climate risks.
26
LHS Outcomes and Action Plan
The LHS guidance makes clear than an outcomes approach should be at the core of
the Local Housing Strategy. Local authorities will want to consider how they will
frame outcomes and actions that contribute to the achievement for a progressive
reduction in greenhouse gas emissions and fuel poverty.
It is vital that outcomes are measurable and for each outcome and/or action it should
be clear what the indicators are that measure progress towards meeting them as
well as the current position (i.e. a robust baseline). In setting targets, consideration
should be given to national targets, such as the 2016 Scottish Government Fuel
Poverty target and the 2020 climate change target.
A suggested Outcome and Action Plan template, that uses a separate table for each
agreed outcome, is provided at Annex A. The LHS guidance suggests that Local
Authorities may want to use this approach for recording actions as well as monitoring
progress on a periodic basis. Annex B provides a worked example of how the LHS
outcomes template could be used to achieve this.
27
ANNEX A
Template for recording outcomes in the Local Housing Strategy
Outcome:
Action
Baseline
Indicators
Target /
Milestone
28
Timescale
Who is
responsible?
Progress
ANNEX B
Template for recording outcomes in the Local Housing Strategy – Worked Example

Outcome:
People live in energy-efficient housing, or People live in housing they can afford to heat
Action


Baseline
Develop a
HEEPS: ABS
programme to
assist
householders to
improve the
energy efficiency
of their homes, to
reduce energy
consumption and
save money
19% in 2012/13
• Ensure all
social rented
housing
complies with
the Scottish
Housing Quality
Standard (SHQS)
by 2015
Develop a local
database for
6.5 (2010
Indicators

Target / Milestone
Timescale
Number of
households in fuel
poverty
0%
By 2016
Average National
Home Energy
Rating (NHER)
score
8.0
March 2015
)

29
Who is
responsible?
Progress
recording,
measuring and
monitoring the
impact of actions
to improve the
energy efficiency
of housing
Support take up of
available energy
efficiency
schemes via local
take-up
campaigns
Provide energy
advice services
through the
Council or a
mechanism to
direct
householders to
existing services

Number of loft
installation
measures
installed 200mm
or more. All
tenures

Develop initiatives
to deliver
community energy
schemes


Carry out random
checks for private
sector landlords’
compliance with
EPC requirements
Number of
cavity wall
insulation
measures
installed. All
tenures.

Support uptake of
district heating
and renewable

Number of
homes


30
heat technologies
as appropriate to
the area through
planning policy,
development
control and local
initiatives

connected to
district or
communal
heating. All
tenures.
Number of
homes using a
renewable
heat
technology
31