Fuel Poverty
Why the latest cut in the energy price cap won't solve the problem of fuel poverty.
by David Hilferty, CAS Director of Impact.
This article was first published in The Herald on 7th March 2026.
At the end of February Ofgem announced the latest cap on energy prices. From April to June, the average household will see a 7% cut in their energy bills.
This is a more significant decrease in the price cap than we’ve seen for some time, which is welcome. However, let’s be clear. It’s nowhere near enough to make an impact on the problem. Energy bills will remain unaffordable for many thousands of people across Scotland.
Every day, advisers from our local CABs and our Extra Help Unit see the harm that this causes as people grapple with the brutal reality of not being able to afford their bills.
In the period from October to December, almost 3,200 people in Scotland needed our support with fuel vouchers – that’s 3,200 people driven to absolute crisis, unable to heat their homes, cook meals, heat water or even put on the lights.
Over the same period, nearly 1,200 people sought our help with energy debt, and more than two thirds (68%) of those were living with a serious health condition or disability. The average level of energy debt we saw in that period was over £2,300, rising to £2,800 in rural areas.
Look at these two people we supported recently (names have been changed).
Aria is a victim survivor of domestic abuse. She struggles to pay for her energy and has accrued energy debt of over £3,000. After speaking to her supplier about repayments, she was told she would need to pay £295 per month to cover ongoing usage and arrears. Aria paid this for about a year but had to get in touch with her local CAB after finding it increasingly unmanageable. She is unable to work due to illness, and her sole income is social security. Aria has had cut back on essential energy usage, which worsened her health further.
Kyle had recently taken full custody of his two children, aged seven and two, and had to reduce his working hours. The loss of income meant that he was struggling to stay on top of paying for his energy and other essential costs. With £3,460 of debt on his pre-payment meters, part of each top-up was being taken for re-payment, with Kyle spending upwards of £200 per month on energy usage and debt. He was finding it impossible to manage and was constantly at risk of self-disconnection. Trying to balance his energy costs and other essential expenses on a low income, while looking after his young children, was taking a significant toll on Kyle’s mental health.
The experiences of these two people are by no means isolated. Indeed, they are increasingly typical of the cases that our advisers see every day.
Of course a 7% cut is a good thing, but it could be reversed in the next quarter. In any case it won’t really touch the sides in terms of helping people like Aria and Kyle. What we need is urgent, bold and targeted solutions that match the scale of the crisis, like a robust scheme for energy debt relief and a social tariff to cut energy bills for those on low incomes or with unavoidable high usage.