HC Deb 13 January 1997 vol 288 cc90-4W
Ms Ruddock

To ask the Secretary of State for the Environment (1) how many responses he has received to the consultation paper on the future of the home energy efficiency scheme; how many of the responses supported additional measures within the scheme; and how many indicated that additional measures should be dependent on an increase in the scheme's financial resources; [10232]

(2) what will be the maximum grant under the home energy efficiency scheme once the revised scheme comes into effect; and from what date this will apply; [10231]

(3) what changes will be made to the standard draught-proofing job available under the home energy efficiency scheme, once the revised scheme comes into effect; and from what date these changes will apply. [10244]

Mr. Robert B. Jones

We received 59 responses, many of which were from bodies representing a number of organisations and companies. Sixty one per cent. of respondents supported the introduction of additional measures to the scheme, and 24 per cent. suggested that additional measures should be accompanied by the allocation of more money.

Following the consultation exercise I have announced revisions to the scheme, increasing the range and choice of energy efficiency measures available, and I hope they will come into effect in April this year. I intend that the maximum grant will remain unchanged at £315. The measures to be included, and their specifications, have yet to be determined.

These changes, together with the increase in the allocation for 1997–98 for this popular programme of 3 per cent. to £75 million, demonstrate our commitment to helping the most vulnerable people keep warmer and use energy more efficiently.

Mr. Gunnell

To ask the Secretary of State for the Environment (1) what were the total sums paid to over 60-year-olds under the HEES in the financial years(a) 1994–95 and (b) 1995–96; and what is his estimate of the amount to be paid in (c) 1996–97 and (d) 1997–98; [10223]

(2) how those householders not on low-income benefit but who are entitled to assistance under the HEES have their contributions calculated; [10221]

(3) how many (a) applicants for and (b) recipients of full assistance under the HEES there were in the current year and the year preceding the changes announced on 28 November 1995. [10222]

Mr. Jones

A total of 624,000 grants were paid under the home energy efficiency scheme in 1995–96 and 470,221 in 1994–95. There is no distinction between applicants and recipients, since grant is applied for after the work has been done by a network installer. There is no central record of inquiries to installers which do not result in work being done under the scheme.

The total amounts of grant paid to applicants giving age as their ground for qualification are set out in the table. It should be borne in mind that those applying on the grounds of age may also be entitled through receipt of a qualifying benefit.

Year Total amount of grant £ million
1994–95 40.4
1995–96 65.9
1996–97 34 (estimate)

It is not possible to estimate the number of grants to over-60s in 1997–98, since I have announced that the scheme will be extended to include a wider range of measures during 1997, and this may affect current patterns of demand.

Householders aged 60 and over applying since April 1996 receive grant of 25 per cent. of the cost of the work, provided that the cost does not exceed the maximum grant level. Their contribution is therefore 75 per cent. of the cost. If the work costs more than the maximum grant, which happens in the case of a minority of houses which are either very large or of unusual design, the work may still go ahead with grant aid if the client wishes. The client is then required to pay the amount of the excess in the same way as all claimants.

Ms Ruddock

To ask the Secretary of State for the Environment (1) how much money from the 1996–97 home energy efficiency scheme budget has been used to fund work where the application was made on or before 31 March 1996; and how many grants have been made in relation to such applications to the latest available date; [10236]

(2) how many grants have been made under the home energy efficiency scheme from 1 April 1996 to the latest available date; in how many cases these were maximum grants; and in how many cases the applicants were required to meet a proportion of the costs; [10237]

(3) what was the average grant made under the home energy efficiency scheme in each of the last three years; and what is the estimated amount for the average grant for 1997–98. [10238]

Mr. Jones

A total of 159,318 grants were paid to householders who had registered an interest before 31 March 1996, at a cost of around £27 million, between 1 April and 30 November 1996. This represents about half of the 319,747 grants paid in the period. Of these, 79,773 were for the maximum amount permitted, and 53,737 applications indicated that the cost of work exceeded this maximum. The number of cases where the applicant paid the excess is now known.

This information about average grants is as follows:

Year Mean grant value
1996–971 167
1995–96 165
1994–95 170
1993–94 171
1To end of November.

I cannot yet estimate the mean grant value for 1997–98, when the revised, more flexible scheme offering a wider range of energy efficiency measures will start operating, because the pricing bases have not yet been decided.

Ms Ruddock

To ask the Secretary of State for the Environment (1) in respect of how many cases where application for home energy efficiency scheme grants have been approved the work has not yet been carried out at the latest available date; [10240]

(2) what was the national average waiting time for (a) processing applications for home energy efficiency scheme grants and (b) carrying out the work under the home energy efficiency scheme once an application was approved in each month of 1996 to the latest available date; [10229]

(3) what was the average waiting time in each region of England and in Scotland and Wales for processing applications for home energy efficiency scheme grants and carrying out work under the home energy efficiency scheme once an application was approved in each month of 1996 to the latest available date; [10230]

(4) what is the waiting list of applicants for home energy efficiency scheme grants which have been received but have yet to be processed at the latest available date. [10239]

Mr. Jones

During the first three months of 1996, installers nationally had order books of between 14 and 18 weeks' work. Between April and November, the latest date for which information is available, the average installer had over 30 weeks' work. Information is not available by region. Latest indications are that this period is decreasing, while customer satisfaction research indicates that actual waiting times tend to be significantly shorter than installers' order books suggest.

The increase was caused by the pre-registration of better-off householders aged 60 and over before the end of March in order to qualify for grants under the old rules. The scheme managers and installers have dealt with the demand efficiently and have ensured that the proportion of the scheme budget going to benefit the least well-off has not diminished by comparison with previous years. The scheme managers will shortly be writing to about 210,000 people who registered an interest last year but have not yet claimed grant to remind them to contact an installer. I estimate that another 40,000 householders have more recently applied to installers for grants and are waiting for work to be done.

Mr. Gunnell

To ask the Secretary of State for the Environment (1) how many representations he has received which criticised his decision to restrict assistance under the home energy efficiency scheme to low-income households in the three months following the announcement of his decision; [10253]

(2) how many representations he has received which criticised the universal entitlement of householders aged 60 years or more for assistance under the home energy efficiency scheme from its inception until the announcement on 28 November 1995 of its restriction to low-income households. [10252]

Mr. Jones

In April 1994 the scheme was expanded to allow full grants to people aged 60 and over regardless of income. This drew comment from both energy action organisations and the press. For example, the report "HEES: The Impact of Change", published by National Energy Action in September 1995, concluded that other sectors of the HEES clientele were becoming marginalised, and that more affluent over-60s clients, particularly those in larger owner-occupied dwellings, were over-represented in numerical terms, and were claiming a disproportionate amount of HEES funding. Since April 1996 householders aged 60 and over who do not receive income-related benefits or disability allowances have been required to make a contribution to the cost of measures provided under the scheme. Around 200 representations were received following the announcement of the change, though most of these were primarily about the scheme's level of funding.

Ms Ruddock

To ask the Secretary of State for the Environment (1) what revision he has made to his estimate of the total number of jobs to be carried out under the home energy efficiency scheme in 1996–97 since his answer of 7 March 1996,Official Report, columns 303–304; and what assessment he has made of the reasons for the changes in the anticipated number of home energy efficiency scheme jobs to be carried out in 1996–97; [10233]

(2) what estimate he has made of the impact on job numbers in (a) energy efficiency services and (b) suppliers of energy saving materials and related services of the reduction in the home energy efficiency scheme budget from 1 April 1996 to the latest available date. [10235]

Mr. Jones

I have not changed my expectation that more than 400,000 grants will be paid under the home energy efficiency scheme in 1996–97, and present indications are that this will be the outcome. Already more than 2 million grants have been paid under this scheme, improving almost 10 per cent. of the entire housing stock and helping people in the greatest need to keep warmer and use energy more efficiently. This is a substantial achievement. One of the criteria for choosing installers within the scheme is their portfolio of work, to ensue that they should not rely on the scheme as their only source of income. There are many opportunities at present for the domestic energy efficiency supply and installation industries. As well as the home energy efficiency scheme there are the regional electricity companies' standards of performance schemes and the Energy Saving Trust's cavity wall insulation scheme. The latter is supported by the Department and I expect at least 40,000 homes to be insulated by the end of the present financial year. In total, these energy efficiency grant, subsidy and cashback schemes should benefit about 500,000 homes, mostly occupied by the more vulnerable households, in the current financial year.