Fuel Poverty (Hansard, 27 June 2000)

§ Mr. Meacher

Using the latest data from the English House Condition Survey, it is estimated that about 8 per cent. of dwellings had an energy efficiency rating under the Standard Assessment Procedure of below 20. The size of the total English housing stock was some 19.6 million dwellings.

The energy efficiency of pensioner and single-parent households are being improved through a range of programmes as described.

The Home Energy Efficiency Scheme (HEES) has been radically overhauled as of 1 June 2000. The scheme now provides grants for packages of heating and insulation improvement measures, including the provision of high efficiency central heating systems for low income households aged 60 years or more. The grant maximum has been increased from £315 to between £700 and £2,000 depending on the composition of each household and the condition of the dwelling. The scheme is focused on the private sector where nearly 70 per cent. of the fuel poor in England are found. In the case of pensioners and single parents, eligibility is linked to the receipt of an income-related benefit or one of the main disability benefits. Of the 460,000 households that are expected to be helped during the first two years of HEES, some 280,000 are likely to be aged 60 years or more.

Government-funded programmes operated by the Energy Saving Trust also improve the energy efficiency both fuel poor households and others.

The Government have also substantially increased the resources available to local authorities over the lifetime of this Parliament, reversing the reductions planned by the previous Government. The extra resources in the first three years, 1997–98 to 1999–2000, were allocated through the Capital Receipts Initiative (CRI). Information collected to monitor the impact of the CRI found that around a quarter to a third of the work on local authorities' own stock financed from this initiative lead either directly or indirectly to improvements in energy efficiency. If this were replicated across all local authority housing capital expenditure on its own stock this would equate to around £400–500 million per annum.

The energy efficiency of low-income households is also likely to be improved through some of the regeneration schemes funded by DETR. These cover a wide range of activities depending on local need, and it is not possible to quantify the precise expenditure on energy efficiency improvements.

To support the installation of energy efficiency measures, the Government also reduced the level of VAT from 1 July 1998 on work carried out on low-income households through eligible schemes such as HEES. The revenue cost of the reduction was £8.5 million a year. 451W This year's Budget extended the reduced rate at a total cost of £35 million a year. By 2002, the total cost is estimated at £85 million.

The Government are also introducing provisions to enable lessors to claim capital allowances on their investment in boilers, radiators and controls installed in residential properties under the Affordable Warmth Programme. The Programme will operate from 2000 to 2007, with the aim of helping up to one million low-income households benefit from improved energy efficiency. Estimate that Government assistance from this measure up to April 2002 will be approximately £10 million.

In addition to Government energy efficiency programmes, since 1994 public electricity suppliers have, under the Energy Efficiency Standards of Performance, been required to encourage and assist customers with energy efficiency measures. The new Director General of the Office of Gas and Electricity Markets has, from this year extended these to also include public gas suppliers and the overall size of the programme has been doubled to £50 million a year. Around two thirds of this help has gone to pensioner and low-income families.

As energy efficiency is a devolved matter, it is the responsibility of the respective Parliament and Assemblies to comment on the situation in Scotland, Wales and Northern Ireland.