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The Scottish Executive's Central Heating Programme and the Warm Deal

Annual Report 2002 2003

The Warm Deal

This section describes the results of the Warm Deal delivered by EAGA and by local authorities.

While the results from EAGA were calculated using data gathered from surveys of every property improved, information for the Warm Deal (local authorities) was restricted to a summary of the measures installed and the number of dwellings improved. No data were available for individual dwellings. Assessments were therefore made based on data available from the 2002 Scottish House Condition Survey for the local authority sector as a whole. In some cases only a limited data set was available and the results should therefore be treated with caution.

Number of properties improved

A total of 30,076 properties were improved under the Warm Deal; 8,231 by local authorities and 21,715 by EAGA (of which energy efficiency ratings could be produced for 20,142).

Types of households living in properties improved by EAGA

Figure 15 shows the types of households that benefited from improvements to their home under the Warm Deal (EAGA). More than one third of households (37%) were pensioners. Nearly one quarter (23%) of the properties improved by Eaga did not contain any of the household categories listed in Figure 15. No data is available on the households in properties improved by local authorities.

Figure 15

Tenure of properties

Figure 16 shows the tenure of properties improved by EAGA. Just under two-thirds of these belonged to either local authorities or housing associations, with the majority of the remainder being owner-occupied. 'Other' refers to tied properties. Local authorities owned just over a half (53%) of properties improved under the Warm Deal (EAGA). Combining this with the number of properties improved by the local authorities themselves, then the total number of local authority properties improved in 2001/2002 under the Warm Deal was 19,830 (66% of the homes improved).

Figure 16

Characteristics of properties improved by EAGA

The key characteristics of properties benefiting from the Warm Deal were gathered by EAGA: no data are available for properties improved by local authorities. Figure 17 shows the approximate period of construction of properties improved by EAGA. As with the Central Heating Programme, properties constructed between 1950 and 1963 are the most commonly occurring (37%). Similarly, there are proportionately fewer properties of more recent construction.

When the period of construction is compared against tenure, there are some significant differences, with privately rented properties tending to be older and housing association properties more modern. For example, half of privately rented properties (54%) were constructed before 1930. In the case of owner-occupiers only 18%, were constructed prior to 1930, for housing associations 13% and for local authorities 5%. This is a similar pattern to last year.

Figure 17

Figure 18 shows the built form of properties improved by EAGA. As with the Central Heating Programme, flats form the biggest single type of property. Comparing built form against tenure shows significant differences between private sector properties (owner-occupied and privately rented) and public sector properties (housing association and local authority), as well as between individual tenure categories. Private sector properties are much more likely to be detached houses. They account for 10% of owner-occupiers and 26% of privately rented homes, whereas less than 1% of both housing association and local authority properties fall into this category. Owner-occupiers are much less likely to live in flats than those living in rented accommodation, whether rented from a private or public sector landlord.

Figure 18

Effect of improvements

The effects of improvements in properties improved under the Warm Deal programme can be described in the same way as those improved under the Central Heating Programme:

Change in the NHER.

Changes in predicted emissions of CO ₂, NOx and SOx. ¹¹

Change in predicted expenditure on fuel.

Effects of improvement on NHER

Properties improved under the Warm Deal (EAGA) were found to have an increase in the average NHER of 0.6 from 4.9 to 5.6. The average NHER of Warm Deal properties prior to improvement was slightly higher than that for those in the Central Heating Programme: 4.9 compared with 3.5. This is to be expected as many of the properties in the Warm Deal programme already had some form of central heating, which was not the case for those in the Central Heating Programme. Figure 19 shows that prior to improvement privately rented properties have the biggest proportion of homes that are rated as NHER 'poor'.

Figure 20 shows the NHER improvements for different tenures improved by EAGA.

Properties improved by the local authorities show the biggest improvement in NHER (1.4). This suggests that after improvement these properties should score 6.3 on the NHER scale. Although the data from the local authorities is limited, and therefore caution should be attached to the results, there is a reasonable explanation for the significantly larger increase should in properties improved by council. Local authorities are able to add to the money allocated to them under the Warm Deal from other sources (e.g. their own capital programme), whereas Eaga may only spend a maximum of 500 per property. Furthermore, the returns from the local authorities indicate that more than half of the properties improved received cavity wall and loft insulation compared with only 6% of the properties improved by EAGA.

Effects of improvements on emissions

Total emissions of CO ₂ are predicted to be reduced by 29,949 tonnes per annum, emissions of SOx and NOx are both predicted to fall by 61 tonnes per year. ^{12, 13}

Effects of improvements on costs

Predicted heating costs for households in properties improved under the Warm Deal (EAGA) fell by 56 on average, from 615 to 559. Warm Deal (local authority) households are predicted to see a 113 reduction in heating costs.

Figure 19

Figure 20

Differences between urban and rural areas

The table below shows the number of installations completed in urban and rural locations based on the property postcodes (properties improved by EAGA only). Proportionately there were more Warm Deal installations in rural areas than under the Central Heating programme: 21% compared with 15%. ¹⁴

Table 5

Figure 21 shows the change in NHER for properties improved by EAGA in each of the location categories.

Figure 21

Figure 22

The relative benefits of the Central Heating Programme and the Warm Deal

The Central Heating Programme provides for both a central heating system and insulation to be installed in a property for an average cost of 2,500 per property, whereas only insulation measures are installed under the Warm Deal. These measures are exactly the same as under the Central Heating Programme. Furthermore, if a property is improved under the Warm Deal this does not exclude it from benefiting from further improvements under the Central Heating Programme, if there is no central heating system and the householder is over 60. Whether a property receives insulation improvements under the Warm Deal and then a central heating system at a later date or has insulation and central heating installed at the same time will make no difference to the overall improvement in the energy-efficiency rating. ¹⁵

However, if we assume that the householder was only eligible for a Warm Deal grant and that only the following measures were installed: Loft insulation, a new tank jacket, and low-energy lightbulbs, then the NHER will rise to 2.5 and reduce the fuel costs to 634 a year (38% reduction).

If the householder then turns 60 and they become eligible for a grant under the Central Heating Programme. As insulation improvements have recently been applied only a gas-fired central heating system is installed. This raises the NHER to 9 and further reduces to the heating costs by 376 per year.

Central Heating Programme: Benefit Entitlement Check

Background

An estimated 15% to 30% of those entitled to one or more state benefit, fail to claim. Around 30% of them are thought to be aged 60 and over. The Central Heating Programme offers participants a check to see if they are receiving their full entitlement to state benefit.

Purpose

The Central Heating Programme benefit entitlement check has two purposes:

• it forms part of Government's efforts to ensure that those who are entitled to state benefit claim it; and
• it forms part of The Scottish Executive's attack on fuel poverty. The measures provided under the Central Heating Programme will themselves take many households out of fuel poverty or lessen their degree of fuel poverty. If low-income households can also benefit from increased income through benefit take-up the effect on fuel poverty will be greater still.

Entitlement check offered in all sectors

The Central Heating Programme provides a benefit entitlement check across all sectors of the stock. Local authorities and housing associations will offer it to their tenants. EAGA offer it to owner-occupiers and private renters. Local authorities and housing associations are not asked to provide returns on benefit entitlement checks to the Scottish Executive. EAGA are required to do so. The following report of the benefit entitlement check therefore relates to EAGA only but the procedure described will be broadly similar across all sectors. However take-up rates and outcomes may differ between sectors.

Benefit entitlement check: the procedure

Offering the benefit entitlement check

After the central heating has been installed EAGA write to the main householder and offer a benefit entitlement check. The offer extends to all members of the household. Householders who wish to have an entitlement check, are given the choice of:

• completing and returning a questionnaire; or
• answering the questionnaire over the 'phone; or
• answering the questionnaire in a face-to-face interview in the home.

If the householder does not return the questionnaire within one month, EAGA phone and offer the benefit entitlement check again or write, if the householder is not on the phone. If the householder accepts, they are given the options set out in paragraph 3 above. If the householder is out when EAGA phone they will be phoned again the following week, and if still out, phoned again the week after that. If there is no answer after three calls, or if there is no response to the letter, the case is closed.

All the EAGA staff who give benefit advice are fully trained and training is updated regularly. Many of the staff concerned have experience in working for the Benefits Agency and in Citizen's Advice Bureaux. Service delivery is regularly monitored and measured against EAGA's quality management standards (ISO 9001).

Assessing entitlement

The completed questionnaires (or information provided by phone) enable EAGA to check circumstances and income against the qualifying criteria for a range of state benefits. Householders who are not claiming their full entitlement are told the benefit(s) to which they may be eligible and told how to apply for them.

Results for 2002/2003

5,257 households were offered a Benefit Entitlement Check, 3,516 households either declined the offer or could not be contacted after a letter or three telephone calls. Therefore, 1741 households (33% of the total) agreed to participate in a Benefit Entitlement Check over the course of the year.

Of the 1,741 households who went through the entitlement check process, 1,003 (58%) were found to be either not eligible for state benefit or were currently claiming their maximum entitlement. The remaining households (738 households or 42%) were therefore identified as either not claiming or under claiming a benefit, or benefits, to which they were entitled.

Of the 738 households identified, 923 recommendations were made where benefits were being unclaimed or under claimed. Some households therefore were under claiming or not making any claims at all on more than one benefit. The most common benefits subsequently recommended were Council Tax Benefit (62%) and Income Support/Job Seekers Allowance (28%).

Follow-up

It is important to recognise that not all of those who pass through the Benefit Entitlement Check then go on to make a claim. Over the course of the year, EAGA Partnership contacted 214 (29%) of the 738 households identified to establish of they had made a claim and if it had been successful.

This follow-up survey found that 64% of households questioned had gone on to make a claim, of which 82% had been successful. Additionally, 14% of those questioned were awaiting a decision from the relevant authority after registering their claim. The total unclaimed benefit that may ultimately be payable to those households questioned is 2,281.09 per week, equivalent to 118,616.68 annually.

76 of the households questioned had not gone on to make a claim for additional benefit. The reasons given for not proceeding to a successful claim can be grouped into five main categories.

• Forgot about the Benefit Entitlement Check (26%).
• Claim refused due to undisclosed information at time of BEC (33%).
• Found process of claiming too complex (5%).
• Haven't yet, but intend to claim (15%).
• No interest in claiming additional benefits (21%).

EAGA Partnership did, nevertheless, encourage those households who still appeared to be eligible to make a claim and also passed on further information where assistance could be obtained when attempting to complete the necessary forms.

The effects of energy advice

Background

Energy advice can help recipients reduce their fuel bills through lowering energy consumption and helping clients to choose the most appropriate fuel supplier and tariff. Energy advice is provided to recipients of both the Warm Deal and the Central Heating Programme. The Scottish Executive provides detailed guidance to the local authorities and EAGA on the scope of the advice to be provided; how the advice is to be provided and who should provide the advice.

Local authorities and housing associations offer it to their tenants. EAGA offer advice to all their clients.

Advice provided under the Central Heating Programme differs from that provided under the Warm Deal in that clients are provided with advice to help them choose the most appropriate central heating system, where a choice is available.

Purpose

Energy advice provided under the Warm Deal and Central Heating Programme has a number of aims:

• to ensure that households can operate their new or existing heating system and feel comfortable in doing so;
• to ensure that they do not incur unnecessary fuel expenditure; and
• to maximise the benefit from the physical measures that have been installed and the investment made.

The effects of energy advice

As energy advice does not influence the NHER rating of the property, it is difficult to quantify the effects of energy advice especially where it is part of a package of measures installed in a home.

However, research by Energy Advice Providers Group indicates that the annual saving to a household , as a result of energy advice, may by around 51 per year, although this included advice on measures that could be installed to improve energy efficiency. ¹⁶ The same report also looked at the benefits to those who only changed some aspect of their behaviour as a result of energy advice. 43% of respondents to a survey, who only changed their behaviour, reported lower fuel bills and 55% reported a warmer more comfortable home.

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