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Blueprint to help fuel poor
19/11/2008
A new Energy Assistance Package is to be made available for the one million Scots who are 'fuel poor', MSPs were told today in a statement to the Parliament.
Health Secretary Nicola Sturgeon announced that the new package, which was the central recommendation of the Scottish Fuel Poverty Forum, will replace the Central Heating and Warm Deal programmes in a drive to tackle all aspects of fuel poverty, not just energy efficiency.
It will be backed by £55.8 million a year - 20 per cent more than existing fuel poverty budgets.
The package will help increase incomes, reduce fuel bills and improve the energy efficiency of homes, offering an integrated package of:
- Energy, benefits, tax credit and tariff checks for a wide range of people
- Standard insulation measures provided free for those most vulnerable to fuel poverty
- Enhanced energy efficiency measures - including central heating, renewable heating systems and insulation for hard to treat homes - for low income households including families living in homes with the lowest energy efficiency
From next April the Energy Assistance Package will be delivered by the network of Energy Saving Scotland advice centres.
Ms Sturgeon said:
"Our six-point plan for the Scottish economy includes helping households experiencing difficulties in the current economic climate.
"We are determined to improve energy efficiency in homes, do more to tackle fuel poverty and offer better financial advice to vulnerable households.
"Our review of fuel poverty in Scotland published in May made for sober reading: fuel poverty on the increase despite huge investment in programmes across Scotland; rural communities struggling and not being well served by existing programmes.
"We have carefully considered the Scottish Fuel Poverty Forum's report and agree with their key recommendation for the Scottish Government to implement an Energy Assistance Package. A root and branch change is needed, so we will act.
"The Energy Assistance Package will improve on the existing fuel poverty programmes by reaching more people, providing a wider range of support in one integrated package, and beginning to tackle rural fuel poverty more effectively."
Rev Graham Blount, Chair of the Scottish Fuel Poverty Forum, said:
"I am pleased that the Scottish Government will implement the Forum's key recommendation on which there was clear consensus amongst Forum members, that programmes should be replaced with an Energy Assistance Package from next April.
"This will present a holistic approach to tackling fuel poverty that focuses on the three key issues by; maximising incomes, improving the energy efficiency of the home and helping make sure people don't pay more than they need to for fuel.
"I am pleased too that the work of the Forum can continue and I am delighted to carry on in my role as its chair."
David Manion, Chief Executive, Age Concern Scotland said:
"Age Concern Scotland welcomes the Minister's announcement today of fuel poverty measures to target those most at risk. This is a timely response and gives confidence that older people's needs will be taken account of."
FUEL POVERTY - Frequently Asked Questions
WHAT IS THE ENERGY ASSISTANCE PACKAGE?
- A four-stage Package of help, as recommended by the Fuel Poverty Forum.
- The package will help increase incomes, reduce fuel bills and improve the energy efficiency of homes.
- Stage 1 provides an initial energy audit to anyone who phones the Energy Savings Advice Centre network, and identifies those at risk of fuel poverty who continue to Stage 2.
- Stage 2 provides help with improving incomes and reducing energy bills.
- Stage 3 provides a package of standard insulation measures (cavity wall and loft insulation), as part of the energy companies' obligation under the Carbon Emission Reduction Target.
- Stage 4 provides more enhanced energy efficiency measures (such as heating systems including renewable systems, and insulation measures for hard to insulate homes for those who are fuel poor).
WHEN WILL IT BE INTRODUCED?
WHO WILL BENEFIT?
- Stages 1 to 3 are widely available and Stage 4, as recommended by the Forum, will be focussed on the homes with very poor energy efficiency and lived in by those households most vulnerable to fuel poverty.
- Stage 1 - anyone can phone for energy efficiency advice from the ESSac network
- Stage 2 - all those vulnerable to fuel poverty will be offered further help with improving incomes and reducing energy bills
- Stage 3 - all those vulnerable to fuel poverty will be provided standard insulation measures (cavity and loft insulation, wherever the home can take these). These will be provided free to all those on income-related benefits or aged over 70, and at a subsidised rate to others.
- Stage 4 - available to the following groups in private sector homes:
- All pensioner households who have never had central heating installed
- Pensioners in energy inefficient homes who are in receipt of the Guarantee Element of Pension Credit or are aged 75 or over
- Low income families in energy inefficient homes with a child under 5 or a disabled child under 16
- For the first time those living permanently in mobile homes will be eligible for help
- Low income defined as on income support, maximum child tax credit or guarantee element of pension credit.
- Energy inefficient homes defined as those where an energy audit identifies that the dwelling has a performance rating of F or G.
WHO WILL DELIVER THE PACKAGE?
- The Package builds on the existing energy efficiency advice network and will be delivered in partnership with existing advice providers, energy companies and the Scottish Government
- To ensure a smooth transition to the new package, Scottish Gas will act as managing agent for Stage 4 during 2009/10. Their current contract to manage the existing programmes is being extended by a year to March 2010 to deliver this.
WHAT DOES THIS MEAN FOR THE CURRENT CENTRAL HEATING AND WARM DEAL PROGRAMMES?
- Both Programmes will be replaced with the Energy Assistance Package from the beginning of April 2009.
FUNDING FOR EAP?
- The Package will be supported by Government funding worth £55.8m per annum, and CERT funding from the energy companies.
- Government funding comes from a range of budgets across the Scottish Government as the Package will deliver a combination of fuel poverty and wider poverty, climate change and energy objectives in a coordinated manner.
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Members of the Scottish Fuel Poverty Forum:
- Age Concern
- Children's Fuel Poverty Coalition
- Citizens Advice Scotland
- Convention of Scottish Local Authorities
- Energy Action Scotland
- Energy Saving Trust
- Energywatch
- Friends of the Earth
- Association for Conservation of Energy
- Help the Aged Scotland
- The Scottish Home Energy Conservation Act (HECA) officers network
- Ofgem (as observers)
- Poverty Alliance
- Scottish and Southern Energy
- Scottish Federation of Housing Associations
- Scottish Gas
- Scottish Power
- Shelter Scotland
Mike Thornton, Scotland Director, Energy Saving Trust said:
"The Energy Saving Scotland advice network currently works with more than 120,000 people each year in Scotland, including many in fuel poverty.
"We look forward to using the skills and resources within the network to deliver this important new package of assistance to the fuel poor."
Norman Kerr, Director of Energy Action Scotland said
"Energy Action Scotland believes that the announcement today by the Cabinet Secretary to implement the Energy Assistance Package will be a major step forward in providing much needed support to a wider range of fuel poor people across Scotland.
"We believe that the work of the Scottish Fuel Poverty Forum is just beginning and look forward to assisting the Scottish Government in ensuring the smooth implementation of the new programme to tackle the blight of fuel poverty."
Russell Ogg, Scottish and Southern Energy, said:
"SSE is pleased that the proposed Energy Assistance Package has been agreed. It will provide an agenda for closer working between many interested parties in helping the most vulnerable people in Scotland.
"The key priority was to devise practical and specific improvements to Scottish Government actions in this area and the Energy Assistance Package is an excellent basis on which to move forward."
Elizabeth Duncan, Director of Help the Aged in Scotland, said;
"Help the Aged in Scotland is pleased to see the Forum's key recommendations adopted by the Scottish Government.
The new energy efficiency package will offer more effective help for the most vulnerable fuel poor pensioner households than the current programme, particularly those in hard to treat homes off the gas-grid.
"The package will also offer a benefits check to ensure households are claiming all their benefits and a tariff check to make sure they are paying the lowest possible price for their energy.
"The extension to younger low income households is welcome as it will help prevent fuel poverty in tomorrow's pensioners."
RECENT ANNOUNCEMENTS ON FUEL POVERTY PROGRAMMES?
May 2007:
- New Administration inherited Central Heating and Warm Deal programmes
April 2008:
- Delivered highest number of central heating systems to private homes since the Central Heating Programme began (14,371 systems in 2007-08)
May 2008:
- Cabinet Secretary made statement on fuel poverty to Parliament, alongside publication of review of fuel poverty programmes in Scotland
- Fuel Poverty Forum reconvened to advise Ministers on way forward
- Priority given to the most fuel poor applicants within the central heating programme in line with review's findings.
October 2008:
- Fuel Poverty Forum reported to Ministers
- Cabinet Secretary announced additional £10m funding for central heating programme for this year (2008-09)
- Allows priority groups under the central heating programme to be expanded
- Cabinet Secretary also indicated that from next year (April 2009), help will be extended to low income families with disabled children under 16 and/or other children under 5, as recommended by the Forum.
November 2008:
- Cabinet Secretary made statement on fuel poverty to Parliament accepting main recommendations of the Fuel Poverty Forum
- Energy Assistance Package to replace the Central Heating and Warm Deal programmes from April 2009
- Provides a more holistic and integrated approach, reaching more people and providing a wider range of support