§ Mr. SpringTo ask the Secretary of State for the Environment what plans he has to develop the home energy efficiency scheme. [6897]
§ Mr. Robert B. JonesI intend to build on the strengths of the home energy efficiency scheme, on which we have spent about £350 million over almost six years, by making changes based on the proposals we published earlier this year. The scheme is popular and well-regarded, and has improved living conditions for 2 million of the most vulnerable households.
I have taken careful account of the comments made on our proposals. The revised scheme will offer greater benefits and more choice. The present range of basic insulation measures will be extended, allowing the scheme to offer the measures best suited to individual homes. Energy rating techniques will be used to monitor the scheme's overall performance.
Under the changes, the range of energy efficiency measures on offer will be widened. Householders will be able to choose from a list of approved measures, which will include draught-proofing of doors and windows, loft insulation, cavity wall insulation and better heating system controls. Energy-efficient lamps, hot water tank insulation and personal advice about how to increase comfort and save energy in the home will also be available.
Eligibility will remain the same. There will be two rates of grant—a standard rate for householders who qualify because they receive an income-related benefit or a disability allowance; and a 25 per cent. rate for people who qualify because they are aged 60 or more. The amount of grant will depend on the measures chosen, but, as now, the standard rate grant should cover the full cost of the work in all homes except those which are large or unusual.
There will be no changes to the way householders apply for grants. Eaga Ltd., based in Newcastle upon Tyne, will continue to manage the scheme, and it will appoint installers to work throughout the country to high standards of workmanship and customer care. Householders will still be able to install some energy efficiency measures themselves, with grant available towards the cost of the necessary materials.
The changes to the scheme will happen from April 1997. The existing format will continue until then, and transitional arrangements will be made for people aged over 60 who are still eligible for a grant under the scheme as it operated before April 1996.