The End Fuel Poverty Campaign
wants
energy efficient homes, decent incomes
and
low cost fuel for low income households.
www.endfuelpoverty.org.uk /
info@endfuelpoverty.org.uk
July 2010 E-Briefing to End Fuel Poverty Coalition
1. Government statements on fuel poverty
Energy minister Greg Barker has committed the
government to eradicating fuel poverty (where
practicable!).
Earlier this month he said: ‘We will continue to
look at ways in which we can make further progress
towards
the fuel poverty goals and remain committed to doing all that is reasonably
practicable to
eradicate
fuel poverty in all households in
He also said: ‘Government is totally committed to
helping those households that are in fuel poverty.
We recognise the need to help more of the most
vulnerable to keep their homes warm at an
affordable
cost.’ And he pointed to the recent announcement on the
Carbon Emission Reduction
Target where the government has accepted our argument
that those receiving cold weather
payments,
plus low income families, should form the super priority group. They will get
at least 15
per cent of the
CERT target.
Here are the two statements:
Dr Whitehead: To ask the
Secretary of State for Energy and Climate Change what date he has
set
for the eradication of fuel poverty in
Gregory Barker:
The Government remain committed to doing all that is reasonably practicable to
eradicate
fuel poverty in all households in
the
Welsh Assembly Government are responsible for progress against their current
target which
is
to do all that is reasonably practicable to eradicate fuel poverty in
Mr Amess: To ask the
Secretary of State for Energy and Climate Change what steps his
Department has taken towards the eradication of
fuel poverty in 2010; what steps he plans to take
in
the first six months of 2011; and if he will make a statement. [8588]
Gregory Barker:
Government recently announced the extension of a more ambitious and
targeted
Carbon Emissions Reduction Target to December 2012, paving the way for the
Green
Deal.
This extension will require a significant and urgent increase in home energy
insulation.
Through the extension we are requiring a greater
focus on helping low income households than
ever
before. This will result in the investment of over £400 million in the most
vulnerable GB
homes.
Approximately 175,000 households are expected to
be provided measures which can provide a
long-term
solution to fuel poverty. Many more will receive measures which will protect
them from
falling
into fuel poverty.
We have the powers to introduce mandated social
price support through the Energy Act 2010
and,
subject to the outcome of the spending review and consultation, we intend to
introduce the
first
scheme in 2011.
19.07.10
Chi Onwurah: To ask the
Secretary of State for Energy and Climate Change what targets his
Department has set for reducing the level of
fuel poverty; and what assessment he has made of
the
contribution of the Warm Front scheme to his Department's objectives. [9935]
Gregory Barker:
We will continue to look at ways in which we can make further progress towards
the
fuel poverty goals and remain committed to doing all that is reasonably
practicable to
eradicate
fuel poverty in ail households in
Government are totally committed to helping
those households that are in fuel poverty. We
recognise
the need to help more of the most vulnerable to keep their homes warm at an
affordable
cost.
Warm Front is key to tackling fuel poverty in
private sector households and has assisted over 2.1
million
vulnerable households, across
26.07.10
2. Warm Front
The End Fuel Poverty Coalition has now written twice
to the Chancellor and DECC about our
concerns
for the future of Warm Front. We have not yet received a reply to either
communication
but the
constant message is, ‘wait until the spending review’.
The Minister recently amended the Warm Front
regulations to ensure that Eaga does not exceed this
year’s
budget allocation for Warm Front in advance of any spending review
announcement.
Eaga issued the following statement in response: ‘The proposed change is a precautionary one, and
is
being made to ensure that the budget for the year is not exceeded in light of
the significant
numbers
of households requiring assistance. Eaga will continue to work closely with
DECC to
manage
the budget available and ensure it is not exceeded. Because the change is
purely a
precautionary
measure, the Scheme will continue to run as normal, remaining fully operational
and
open
to applications.’
However the government has already recognised it needs
to create continuity and has extended
CERT until December 2012. Abolishing Warm Front in
2011 will break the continuity between Warm
Front and any new regime developed around the Green
Deal. As Greg Barker pointed out [above]
‘Warm Front is key to tackling fuel poverty in
private sector households and has assisted over 2.1
million
vulnerable households, across
So (for the time being) Warm Front is not being frozen
but we need to keep lobbying to make sure
that it does
continue beyond March 2011 with preserved funding.
3. Update on
Green Deal
“Green Deal” now encompasses the Pay as You Save
(PAYS) finance mechanism and the new
supplier
‘energy efficiency’ obligation that will replace CERT in 2012/13. The
Government has now
made a number of
statements that suggest the supplier obligation will focus on low income
consumers
and hard to treat properties. A substantial element is likely to be delivered
through areabased
approaches
(building on the Community Energy Saving Programme (CESP). It is not yet
clear how much
control fuel companies will have over the new programme. One suggestion is that
the money is
pooled into a central pot to which fuel companies, local authorities,
contractors, energy
service
companies etc can bid.
A key issue is to the extent to which the PAYS element
of Green Deal (which is focussed on the able
to pay) will
require subsidy from the supplier obligation. The Government has stated that
PAYS will
only fund
measures that provide significant savings on bills in relation to payments
towards the cost
of measures,
i.e. the savings will outweigh the monthly/quarterly cost of the measures.
There are likely to be substantial transaction costs, given the government wants to include
supermarkets
and high street stores and banks etc, and interest rates are critical to the
viability of
PAYS. At the
moment, PAYS appears to only fund insulation measures. It is not clear what the
position
is for glazing and heating. Micro-gen will not, at the moment, form part of the
deal because
this will be
funded through feed in tariffs and the possible renewable heat incentive
(although the
future
of the latter is looking uncertain). If PAYS is going to require substantial
subsidy, potentially
from the
supplier obligation, there will be less supplier obligation resources for fuel
poverty.
The EFPC should press for Green Deal to provide
suitable measures for fuel poor/low income
households
and make sure there is particular provision for hard to treat homes. This will
require
sufficient
funding to cover the costs of solid wall insulation. We will also need to make
the case that
Green Deal should fund micro-gen for off-gas low
income consumers. We also need to make the
case that Green
Deal should aim to bring homes up to the same standard as homes built today,
where practical.
4. Minimum standards for private rented sector
campaign
Friends of the Earth is carrying out a campaign to
introduce minimum energy efficiency standards for
private
rented homes. This has three strands:
Strong minimum standards which
are toughened over time, should make it illegal to rent out a
property
below a certain energy efficiency rating, with very few exceptions. This should
start
immediately
with properties in Energy Performance Certificate (EPC) Bands F and G, and
tighten to
higher
bands over time to a clear timetable. Certain cost effective measures should
also be made
mandatory.
The previous government’s Home Energy Management Strategy proposal to make
cavity
wall and loft insulation mandatory from 2015 did not go nearly far or fast
enough. However, it
did provide a
welcome acceptance of the principle of setting standards for the energy
efficiency of
private
rented homes.
Financial incentives to
support and encourage investment to the standard required by these
minimum
standards, including an extended Landlords’ Energy Saving Allowance and a
reduction in
VAT on refurbishments.
Information Energy
performance certificates (EPC’s) must be of higher quality, better enforced and
given a higher
profile for both landlords and tenants, and the Energy Saving Trust and local
authorities
should have access to information in EPCs so that action can be better targeted
and
coordinated.
Many supporters of the EFPC have already expressed
support for the campaign. The next meeting
of the EFPC
will discuss the proposals.