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Over three million households in England were estimated to be in fuel poverty in 2007

COMMENTING ON the National Audit Office report on the Warm Front scheme, South Norfolk MP Richard Bacon, a member of the Commons public accounts committee, said: “Warm Front is a well-meaning scheme to lift families with children, the elderly and the long-term sick out of fuel poverty by improving the energy efficiency of their homes.”

“The government targets help at those who are receiving benefits because it believes they are most likely to be in fuel poverty.”

“Unfortunately, over half of the households in fuel poverty are not eligible for the scheme since they don’t claim the relevant benefits.  What’s more, three quarters of those who are eligible for a Warm Front grant are not necessarily in fuel poverty and, to cap it all, £34 million in grants has gone to people who already had energy efficient homes.”

“The Warm Front scheme is unintentionally giving the cold shoulder to many of those who are most in need of its help.  The government needs to look again at how it decides eligibility for the scheme and make sure that Warm Front grants flow to those households which are actually in fuel poverty.”

Mr Bacon was speaking as the National Audit Office published its report on the Warm Front scheme.  Warm Front is a key programme of the Department of Energy and Climate Change which aims to tackle fuel poverty by improving energy efficiency in privately owned properties in England. 

The Government classifies a household as fuel poor when it needs to spend more than ten per cent of its annual income on energy costs. Over three million households in England were estimated to be in fuel poverty in 2007, and as of 2006 nearly two million were families with children, the elderly or occupants in long-term ill health, and thus classified as vulnerable.

The report finds that the Government’s use of proxy measures, such as benefit entitlement, to determine who is eligible for Scheme grants has resulted in inefficient targeting of resources. Fifty-seven per cent of vulnerable households in fuel poverty do not claim the relevant benefits to qualify for the Scheme and nearly 75 per cent of households who would qualify are not necessarily in fuel poverty. 

In addition, between June 2005 and March 2008 the Scheme has given £34 million in grants to households whose properties were already comparatively energy efficient. 

4 February 2009

See also:
NAO REPORT: The Warm Front Scheme
PARLIAMENT: Warm Front scheme failing rural poor, says MP
PARLIAMENT: We can do more to cut energy bills, says MP