Some of Scotland's most vulnerable households will be the most affected by the UK Government's proposed changes to the Energy Company Obligation (ECO).

The UK Government's has already said that spending by energy companies under the ECO is due to be reduced by around £500m a year across Britain, and in terms of Scotland, based on population, which would be a reduction of around £50m a year for the country.

It is understood that the measures needed by many fuel poor households to save energy – such as insulation for cavities and solid walls, will be replaced with cheaper measures. As a result, the Scottish Government has said this will affect Scotland's poorest households as fewer funds will be available to cover the necessary measures needed to tackle fuel poverty.

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Speaking ahead of a Fuel Poverty debate on Wednesday (23 April), Housing and Welfare Minister Margaret Burgess said: "Changes to the UK Government's ECO will significantly reduce resources, cutting expenditure in Scotland for energy efficiency and fuel poverty measures and will put further improvements in serious danger.

"The cut to ECO of around £50 million will have serious consequences for homes in fuel poverty and jobs in Scotland.

"Insulating hard to treat cavities and solid walls is essential to making progress in reducing emissions from housing and helping families struggling with energy bills.

"We believe that a more comprehensive and fairer service for those vulnerable to fuel poverty can be provided with a properly planned and Government funded service, working with delivery partners, which is our approach through the Home Energy Efficiency Programmes for Scotland. This is far better than relying on the kind of market incentive system favoured by the UK Government."

She added: "We are doing everything we can within our limited powers to provide a wide range of energy efficiency measures to individual households and to local authorities."

(JP/MH)