Summary
'Warm Front' is a key programme of the Department of Energy and Climate Change to tackle fuel poverty by improving energy efficiency in privately owned properties in England.
This Report, 'The Warm Front Scheme (HC 126)', follows earlier National Audit Office examinations of the Scheme (in 1998 and 2003) and focuses on the extent to which it has helped those in fuel poverty, the costs of the work done, and the Department's management of the contract with eaga who administer the Scheme.
Three factors contribute to fuel poverty:
- Low household income;
- High fuel prices; and
- Poor energy efficiency.
Between June 2005 and March 2008, the Warm Front Scheme helped to improve the energy efficiency of over 635,000 households in England. However, according to the National Audit Office there were 1.9 million vulnerable households in 2006, so this rate of progress will still leave many in fuel poverty in 2010.
The Report finds that the installation of central heating systems and insulation in homes has helped vulnerable people who might otherwise suffer from the cold weather. Satisfaction is high, with 86% of assisted households either highly satisfied or satisfied with the work done.
The Report concludes that delivery of the Scheme has been largely effective - and to that extent offers value for money - but it has been impaired by problems in Scheme design.
The Government's use of proxy measures, such as benefit entitlement, to determine who is eligible for Scheme grants is a pragmatic approach but it has resulted in inefficient targeting of resources.
For example:
- 57% of vulnerable households in fuel poverty do not claim the relevant benefits to qualify for the Scheme.
- Nearly 75% of households who would qualify are not necessarily in fuel poverty, although in practice a large number may have fallen into or be near fuel poverty owing to recent energy price increases.
- Between June 2005 and March 2008, the Scheme awarded £34 million in grants to households whose properties were already comparatively energy efficient.
Most measures provided by the Scheme appear to be competitive with industry prices but gas and oil boiler replacement costs are at the higher end of the range, partly because of Scheme specifications.
The grant available has not increased since 2005 and more applicants (around 25% in 2007-08) are having to contribute towards the cost of the work carried out. Some eligible applicants are therefore withdrawing from the Scheme, or not progressing their applications (around 20,400 households in total as of October 2008).
Found this story interesting?
Spread the news by
clicking below to add it to your bookmarking service: