HC Deb 11 December 1997 vol 302 cc630-2W
Mr. Stunell

To ask the Secretary of State for the Environment, Transport and the Regions if he will publish an analysis of work carried out since revisions to the home energy efficiency scheme showing the numbers of different measures installed, the average cost of individual measures and the average value of a home energy efficiency scheme grant; and if he will make a statement. [19699]

Angela Eagle

The latest data available cover the period from 1 July 1997, when the revisions to the Home Energy Efficiency Scheme took effect, until 30 September 1997. Forty thousand and seven grants were paid for work under the revised scheme. Some work carried out during this period will not be included because the claims for payment will have been processed in the following quarter. An additional 52,308 grants were paid during this period in respect of work carried out under the preceding scheme, which contained a more limited range of energy efficiency measures.

The breakdown of these 40,007 grants, by the main measure installed, was:

Draught

Proofing

Loft

Insulation

Cavity Wall

Insulation

Heating

Control

Upgrade

29,690 7,331 3,986 nil

Additionally, 34,773 grants were paid for low energy light bulbs, 30,104 for personal advice on energy efficiency and 9,954 for hot water tank insulation in conjunction with one of these main measures.

The mean value of all grants paid during the same period was £159. By the main measure installed, the mean grant values were as follows:

Draught

Proofing

Loft

Insulation

Cavity Wall

Insulation

Heating

Control

Upgrades

£130 £236 £281 nil

I am very pleased to announce that this information, updated quarterly, will become publicly available from early 1998. Our managing agent, Eaga Ltd., will place detailed reports about the scheme on the Internet. The address will be www.eaga.co.uk.

I propose, in the near future, to review this scheme, which is intended to help people on low incomes keep their homes warmer and use less fuel, to find out if it is helping the right people in the most effective way.

Mr. Stunell

To ask the Secretary of State for the Environment, Transport and the Regions what financial resources will be available to fund the cost of energy efficiency work carried out under the Environmental Task Force Programme; and if he will make a statement. [19697]

Angela Eagle

The Environment Task Force is one of four options available to the young unemployed under the New Deal for 18 to 24-year-olds, and will be funded from the windfall levy on the excess profits of the privatised utilities.

The level of funding available for projects carried out by the Environment Task Force, including energy efficiency work, will vary according to the administration and material costs of the placements, and will be subject to a competitive tender process, managed by the Employment Service.

Mr. Alan Simpson

To ask the Secretary of State for the Environment, Transport and the Regions what estimate he has made of the carbon savings that will occur each year as a result of the reduction in the level of VAT levied on activities undertaken under the Home Energy Efficiency Scheme; and what estimates he has made of the carbon savings that would have occurred each year, had the same reduction in the level of VAT been levied on all purchases and installations of such energy-saving items as are deemed eligible under the Home Energy Efficiency Scheme, but currently undertaken outwith that scheme. [18544]

Dawn Primarolo

I have been asked to reply.

Customs' recent report on the scope of a reduced rate of VAT for energy-saving materials concluded that a reduced rate of VAT targeted through HEES and similar grant-funded schemes would help more of the less well-off keep warm. The report also suggests that the environmental benefits of such a limited reduced rate would be small, because the benefit to such households may be taken in warmer houses rather than reduced fuel consumption.

The Government have said that they will explore with our European partners the scope for a reduced VAT rate on a broader range of Energy Saving Materials because this would have a larger environmental effect.

Applying a reduced rate of VAT of 5 per cent. to all supplies to domestic consumers of the sort of energy saving measures that are available under the Home Energy Efficiency Scheme (including for DIY installation) might result in an initial annual saving of 3,000 tonnes of carbon, accumulating to 40,000 tonnes annually by 2010.