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Towards 2016 - The Future of Fuel Poverty Policy in Scotland

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5. Potential Options for Future Programmes

Four broad options for future fuel poverty programmes were considered, as set out in the table below:

(a) reverting to the Programmes prior to the Cabinet Secretary's statement in May;

(b) continuing with the current temporary prioritisation of the Central Heating Programme since May;

(c) extending the current Programmes to reach a broader range of fuel poor groups; or

(d) redesigning the Programmes in a different way.

Options

Description

Reason for rejection

Revert

Revert to pre-22 May Programmes:

  • Free central heating for private sector pensioner households who have none or have a broken system, and replacements of partial and inefficient systems for those who receive the Guarantee Element of Pension Credit or are aged over 80 - using majority of Government funding;
  • Warm Deal insulation programme for those on passport benefits by Government and separate funding for Local Authorities; and
  • Separate CERT programme of insulation and other measures.

Insufficiently well targeted: many in fuel poverty are not eligible and many of those receiving the programme are not in fuel poverty.

Continue

Continue with post-22 May Programmes:

  • Central heating for priority groups over 60: those with no central heating, or those with a broken system and either aged over 80 or who receive the Guarantee Element of Pension Credit;
  • Warm Deal insulation programme for those on passport benefits by Government and separate funding for Local Authorities; and
  • Separate CERT programme of insulation and other measures.

Although an improvement on 'revert' above, this is still insufficiently targeted on fuel poverty. It also lacks synergy with CERT.

Extend

Extend current Programmes:

  • Central heating for priority groups over 60, plus some sub-set of families on passport benefits. Include renewable heating options where connection to gas not an option; and
  • Energy companies take over Warm Deal work from Government under CERT.

This has insufficient synergy with other programmes like CERT.

Redesign

Redesigned Programme with new approach:

  • One coordinated fuel poverty package;
  • Holistic approach to help with all aspects of fuel poverty;
  • Three checks provided: a benefit and tax credit check to maximise income, a tariff check to minimise the price paid per unit of energy, and an energy efficiency check; and
  • Standard energy efficiency measures funded by energy companies under CERT, and enhanced energy efficiency measures funded by Government.

Recommended package.

We considered each of these options against the aim and objectives we had agreed, and noted that the Redesign option was most likely to meet these objectives.

The following section sets out in more detail the Redesign option that we recommend.

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Page updated: Thursday, October 9, 2008