“The government is trying to target help at those who are receiving benefits because it thinks they are most likely to be in fuel poverty.” 

“Unfortunately, Warm Front has given the cold shoulder to those who are most in need of help, especially in rural areas.  Only 35 per cent of households in fuel poverty are eligible for the scheme and, although 28 per cent of fuel-poor households live rurally, only 15 per cent of households helped by Warm Front were in rural areas.” 

“What’s more, three-quarters of those who got a Warm Front grant were not in fuel poverty and the government has handed out £34 million in Warm Front grants to households who already had warm, energy efficient homes.”

“The government needs to look again at how it decides eligibility for the scheme and make sure that Warm Front grants go to those households which are actually in fuel poverty.  It also needs to be clear about what Warm Front is actually for.  Is it an energy efficiency scheme or a drive to end fuel poverty?  At present, it’s failing on both counts.”

Mr Bacon was speaking as the Commons public accounts committee published its report on the Warm Front scheme.  A household is defined as ‘fuel poor’ when it needs to spend more than 10 per cent of its net income on fuel.  In 2007, over three million households were estimated to be in fuel poverty and increases in domestic energy prices may have forced a further 1.5 million households into fuel poverty. 

The Warm Front scheme provides eligible households with heating and insulation measures in order to improve household energy efficiency and to reduce fuel poverty.  Warm Front, administered by the Department for Environment, Food and Rural Affairs (DEFRA) between June 2005 and March 2008, assisted over 635,000 households at a cost of £852 million.

The report finds that the scheme continues to be poorly targeted despite some changes to the eligibility criteria. Nearly 75 per cent of households entitled to a grant are unlikely to be in fuel poverty, whilst the scheme is only available to 35 per cent of all those households likely to be in fuel poverty, partly because the eligibility criteria include receipt of non-means tested benefits. 

Data suggests 28 per cent of those in fuel poverty live in rural areas but only 15 per cent of households assisted were from such areas. Rural properties are often harder to treat as they may be off the gas network and be older properties with solid walls which are more difficult to insulate.

In addition, between June 2005 and March 2008, £34 million was paid to households whose properties were already energy efficient, representing about 18 per cent of those assisted in that period. Some £15.4 million was spent on providing energy efficient light bulbs, tank jackets and draught proofing, which have limited impact on overall energy efficiency, and are also unlikely on their own to lift households out of fuel poverty.