Cost crisis: Constituency support for enquiries related to the cost of living and the cost of doing business

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About this blog

SPICe has received a high number of constituency enquiries relating to the current cost crisis. The Scottish Government defines the cost crisis as including:

“the sharp increases in the cost of living, in the cost of doing business and in the costs for other organisations including in the third and public sector”

This blog contains up-to-date links to a selection of trusted and official external sources of information relating to support available for individuals and organisations to help with the cost crisis.

Please note: this blog is updated every Friday morning.

Related blogs

The Scottish Government’s planned rent freeze – background (Last updated 3 October 2022)

Cost of living: Scottish Government support (Last updated 29 July 2022)

Energy price crisis- impacts and remedies in Scotland (Last updated 6 April 2022)

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Support for individuals and families

Scottish Government support

  • Home Energy Scotland (HES): HES offers free impartial information and advice on making homes more energy efficient and available funding options on behalf of the Scottish Government. HES is the referral partner for most projects within the Fuel Insecurity Fund, which is distributed through third sector partner organisations. HES also administers the Warmer Homes Scotland scheme which offers advice and financial assistance to homeowners for the installation of energy saving improvements.  
  • Winter Heating Payment: Annual payment of £50, paid automatically through Social Security Scotland, to those who qualify. It replaced the Cold Weather Payment in Scotland in February 2023.
  • The Scottish Child Payment: Those who are in receipt of certain payments or benefits can receive a weekly payment of £25 for every child they look after who is under the age of 16.
  • Child Winter Heating Assistance: A payment to help disabled children and young people and their families with increased heating costs over winter. The payment for winter 2023-2024 is £235.70. 
  • Scottish Welfare Fund: This Fund offers crisis grants and community care grants, applied for through the local authority.
  • Island Cost Crisis Emergency Fund: Funding has been allocated to the six island local authorities to support islanders who are struggling with the cost of living. Local authorities will provide the support through new or existing schemes.
  • Home Heating Support Fund: Funding is available from the Scottish Government, through charity partners, for people struggling to pay energy bills. Individual households that have received money and / or energy advice from an accredited advice agency can apply through the ‘Household Application’ route. Advice Direct Scotland can also make referrals on to the fund on a customer’s behalf.
  • Discretionary Housing Payment: Payment for those who receive Housing Benefit or Universal Credit and have difficulty paying for their housing costs. Applications are made through the local authority.
  • Tenant Grant Fund: The Scottish Government has announced that it is widening the eligibility for the Tenant Grant Fund, to support those struggling with increasing costs. The fund was put in place during the pandemic to help pay rent arrears. Individuals should contact their local authority to apply.

UK Government support

  • Energy Bills Support Scheme: £400 non-repayable discount will be paid to eligible households starting from October 2022. *This scheme ended in March 2023*
    • EBSS Alternative Funding: People without a direct relationship to a domestic energy supplier, such as care home residents and residents of park homes, will receive £400 in energy bills support. For some it may be necessary to apply to receive the payment. Applications opened in February 2023.
    • Alternative Fuels Payments: Those who use alternative fuels such as biomass or heating oil will receive a further £200 on top of the £400 energy bills support. It may be necessary for some to apply to receive the payment. Applications opened in February 2023.
  • Cost of Living Payment 2023-2024: Those on means tested benefits may automatically get a payment of £900 paid in two lump sums in spring 2023 and 2024. Extra cash support will be available to eligible disabled people and pensioners.
  • Winter Fuel Payment: People born on or before 25 September 1956 can get between £250 and £600 to help pay for heating bills. The amount includes a ‘Pensioner Cost of Living Payment’ of between £150-£300 paid in winter 2022 to 2023 and winter 2023 to 2024. Most eligible people will receive the payments automatically.
  • Disability Cost of Living Payment: Those on qualifying disability benefits may automatically receive a payment of £150 in summer 2023.
  • Warm Home Discount: The Warm Home Discount is a discount of £150 on the electricity bill for eligible groups.

Support with fuel and utilities

  • Home Energy Scotland (HES): HES offers free impartial information and advice on behalf of the Scottish Government on how to make homes more energy efficient, including options for funding.
  • Child Winter Heating Assistance: Benefit to help disabled children and young people and their families with increased heating costs over winter. The payment for winter 2022-2023 is £214.10. 
  • Winter Heating Payment: Annual payment of £50, paid automatically through Social Security Scotland, to anyone who qualifies. It replaced the Cold Weather Payment in Scotland in February 2023.
  • Energy Bills Support Scheme: £400 non-repayable discount will be paid to eligible households starting from October 2022. *This scheme ended in March 2023*
    • EBSS Alternative Funding: People without a direct relationship to a domestic energy supplier, such as care home residents and residents of park homes, will receive £400 in energy bills support. For some it may be necessary to apply to receive the payment. Applications opened in February 2023.
    • Alternative Fuels Payments: Those who use alternative fuels such as biomass or heating oil will receive a further £200 on top of the £400 energy bills support. It may be necessary for some to apply to receive the payment. Applications opened in February 2023.
  • Winter Fuel Payment: People born on or before 25 September 1956 can get between £250 and £600 to help pay for heating bills. The amount includes a ‘Pensioner Cost of Living Payment’ of between £150-£300 paid in winter 2022 to 2023 and winter 2023 to 2024. Most eligible people will receive the payments automatically.
  • Home Heating Support Fund: The fund ‘seeks to provide financial relief to energy consumers who are experiencing significant financial hardship and strives to provide this support to households regardless of the fuel or payment method used.’
  • Warm Home Discount : Discount of £150 on the electricity bill for eligible groups.

Other useful sources

Support for businesses / organisations

  • Energy Bills Discount Scheme Eligible non-domestic customers will receive a per-unit discount to their energy bills during the 12-month period from April 2023 to March 2024. The scheme replaced the Energy Bill Relief Scheme which supported businesses and organisations between 1 October 2022 and 31 March 2023.
  • Business Energy Scotland (BES) SME loan scheme: The loan can be used to finance the installation of energy efficient systems, equipment or building fabric.
  • Scottish Industrial Energy Transformation Fund (SIETF): The fund is aimed at industries with high energy usage. It can support investment in a range of technologies, including systems that re-use heat from industrial processes and technology that reduces the amount of energy used within a manufacturing production line.
  • District Heating Loan Scheme: Loans are offered for renewable and low carbon, low emission technologies for heating distributed through a network of pipes.
  • Electricity Framework Agreement: A framework agreement for all public sector bodies, along with registered charities to save on the cost of electricity.
  • Natural Gas Framework: A framework agreement for all public sector bodies, along with registered charities to save on the cost of natural gas.
  • Non-domestic rates (business rates): Owners of non-domestic properties might be entitled to non-domestic rates relief. These discounts only apply to non-domestic rates bills and don’t directly reduce rent, water charges or other bills. Relief schemes include:
  • Non-domestic rates relief (COVID-19): Retail, hospitality and leisure businesses can get 50% non-domestic rates relief for the first three months of the year, capped at £27,500 per ratepayer.
  • Energy Redress Scheme: Funding for projects that support energy consumers in vulnerable situations. Registered charities, community interest companies, co-operative societies and community benefit societies can apply.

Other useful sources

Lena Phalen, Enquiries Officer