Fuel poverty scheme 'not fit for purpose'

Wednesday, 4 February 2009 1:01 PM

By Sarah Garrod

Age Concern and Help the Aged are today warning that the government's fuel poverty scheme, Warm Front, is not doing enough to tackle fuel poverty.

The National Audit Office (NAO) released a report on its findings on the Warm Front scheme today, which said over half of vulnerable families in fuel poverty did not qualify for the scheme.

Warm Front is aimed at helping the poorest and most vulnerable households in fuel poverty.

However, the new figures show that the capping of the grant at £2,700 has meant in the last three years over 130,000 clients have had to pay a top-up fee, which many have struggled to afford, in order to proceed with heating improvements.

The NAO also found the proxy measures in place to determine who qualifies for the scheme, such as benefit entitlement, have caused an inefficient targeting of resources, as fifty-seven per cent of vulnerable households in fuel poverty do not claim the relevant benefits to qualify for the scheme.

Tim Burr, head of the National Audit Office, said: "The Warm Front Scheme has helped to alleviate fuel poverty in a large number of households. But despite changes intended to improve the targeting of the scheme, over half of vulnerable families in fuel poverty still do not qualify, while many households unlikely to be fuel poor are able to claim a grant.

"The Department of Energy and Climate Change needs to improve the way it assesses eligibility for the scheme, so that the most vulnerable households are the first to receive the assistance they need."

The figures also show there has been a huge increase in demand for Warm Front grants, with over 100,000 eligible households now waiting for work to be completed through the scheme. However, nearly 75 per cent of households who would qualify are not necessarily in fuel poverty, although in practice a large number may have fallen into or be near fuel poverty owing to recent energy price increases.

With the severe cold weather felt in many parts of the country this week, Age Concern and Help the Aged have highlighted the necessity for the scheme to help vulnerable older people in particular, calling the current administration of the scheme "not fit for purpose".

Gordon Lishman, director general of Age Concern, said: "When the Warm Front scheme works, it works well saving customers hundreds of pounds per year. However the reported satisfaction rates don't reflect the thousands of complaints we are receiving from older people about the scheme.

"With thousands of the poorest households unable to proceed with work because they can't afford the top-up fees needed, and thousands more on a long waiting list, the scheme is clearly not doing enough to tackle fuel poverty.

"The harsh reality is that in these freezing weather conditions, millions of older people are living in cold, energy inefficient houses and are afraid to turn their heating up because of the cost - which could be putting the health of thousands at risk.

"The government must act urgently to address the scheme's failures. We agree with the recommendation of the NAO report that targeting of the grants must be improved to better reach those in fuel poverty. However if the poorest households are to be helped, the government must also raise the grant available to ensure it covers the work needed."

With demand for the Warm Front scheme having increased so dramatically, the difficulties many of the poorest pensioners experience with the capping of the grant is likely to be a growing problem, says Age Concern and Help the Aged.

Mervyn Kohler, special adviser for Help the Aged, said: "The National Audit Office report gives stark and unequivocal evidence that the government's Warm Front scheme is grossly underfunded, poorly targeted and unfit for purpose in its current form.

"The programme tasked with combating fuel poverty has failed to even scratch the surface - a few hundred thousand are being helped while millions are quite literally left cold. The government's fuel poverty strategy is in tatters.

"The government must come to terms with the fact that fuel poverty has spiralled out of all control in the last three years. We need to think hard about how we are going to make the UK more energy efficient and ultimately warmer for the most vulnerable who cannot afford to heat their homes.

"Warm Front in its current form and at the current funding level is not working and the millions of older people at risk this winter cannot afford for this failure to continue."

The charities are calling for the government to increase overall funding, increase the grant available and to target the scheme at the poorest households.

The government has responded by saying fuel poverty will remain a priority, and that rising energy prices and the international economic situation are behind the increase in the number of households living in fuel poverty.

Joan Ruddock, energy and climate change minister, said: "I am currently reviewing all aspects of the Warm Front scheme, and today's report from the NAO makes a valuable contribution.

"The government has already taken steps to improve the scheme, including hiring an independent troubleshooter to review the existing contract who has already recommended opening the scheme up to greater competition and improving the selection of suppliers and installers. We have also increased its funding by £174 million since September.

"There is a strong case for raising the current grant levels, which I am urgently investigating, along with the need to expand Warm Front to include new, low-carbon technologies. We are also looking at the issue of improved targeting as part of the current review.

"Warm Front has helped 1.8 million householders so far, but there are improvements to be made and I am working hard to ensure that the result is a fair, efficient and effective programme."

The Government has spent £20 billion since 2000 on fuel poverty benefits and programmes.

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