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Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019

A worked example

44.The example below demonstrates how the calculation of the fuel poverty gap works. It builds on the hypothetical example given at paragraphs 35 to 38 above but, because the fuel poverty gap only applies where a household is in fuel poverty, it uses the alternative ending set out at paragraph 38 which applies where the home in question was located in a remote rural area, remote small town or island area.

45.The section 5 test is as follows—

Relevant information:
£80per month necessary fuel costs
£750per month adjusted net income
£679.57per month to maintain an acceptable standard of living
£670per month remaining adjusted net income (i.e. the household’s adjusted net income after deducting the necessary fuel costs, benefits received for a care need or disability, and childcare costs)
The first figure:
£960annual necessary fuel costs
(£900)10% of annual adjusted net income
The second figure:£8,154.84annual sum required for acceptable standard of living
(£8,040.00)annual remaining adjusted net income
As the first figure is lower, it is used.  The fuel poverty gap in this case is therefore £60.

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Text created by the Scottish Government to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Acts of the Scottish Parliament except those which result from Budget Bills.


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