1 Reaching the right people
1. Warm Front aims to reduce fuel poverty in vulnerable
households in England by improving the energy efficiency of their
homes. The Scheme is an important component of the Government's
UK Fuel Poverty Strategy, published in November 2001, which aims
to eliminate fuel poverty in England by 2016, and to eliminate
it in vulnerable groups by 2010 as far as practicable. Eligibility
for the Scheme is open to households in receipt of certain 'passport'
benefits such as Housing Benefit or Income Support, living in
private sector accommodation. Other policy measures are intended
to reach the fuel poor living in social housing. Those eligible
for Warm Front fall into one of three vulnerable groups; families
with children, the over 60s, and the disabled or long term sick.
The assistance the Scheme provides has been much appreciated by
those who have benefited from it.[3]
2. Warm Front has, therefore, the potential to make
a significant difference to households in need. Of the grants
made under Warm Front however, two thirds have gone to people
who were not fuel poor, resulting in a poor match between those
whom the Scheme was intended to reach and those who have actually
received assistance (Figure 1).[4]
The Department explained that following consultation when the
Scheme was devised, it was decided that target groups could best
be identified through the receipt of certain benefits, and that
this approach would provide easily understood eligibility criteria.
3. Of the 1.2 million fuel poor households in
vulnerable groups in the private sector in 2001, a third do not
qualify for the Warm Front Scheme, because they are not in receipt
of qualifying benefits. The Department acknowledged that as the
overall numbers of fuel poor declined the proportion of fuel poor
ineligible for Warm Front might increase. They also agreed that
that the proportion of Scheme beneficiaries who were genuinely
in fuel poverty would decrease further unless the eligibility
rules of the Scheme were improved.[5]
4. Currently the energy efficiency of homes receiving
grant is similar to the profile of the energy efficiency of homes
across England (Figure 2). The Department did not select
households for the Scheme on the basis of the energy efficiency
of the property but on the need of the household and what was
available under the Scheme. Grants helped to improve the levels
of comfort of vulnerable people even if the energy efficiency
of their homes was not permanently improved. An energy efficient
household would be most likely to receive energy advice and energy
efficient light bulbs under the Scheme. 10% of Warm Front grants
had no impact on the energy efficiency of the home, and a fifth
of all grants had no significant impact. [6]
5. The Scheme is not directing funds at those most
in need. The Department agreed that after taking account of administration
costs of around £18 million, and around the same on survey
and inspection costs, approximately £113 million each year
was available to help the fuel poor. Half of that expenditure
was directed to people who were not fuel poor. The Department
estimated that between £234 million and £410 million
of grants had gone to non fuel poor households since the Scheme
began. Those helped under the Scheme who were not fuel poor were,
nevertheless, vulnerable people receiving benefits such as pensioner
couples and therefore worthy of help even if not the main priority
of the Scheme as originally intended. The Department was concerned
not to complicate the eligibility criteria in case this discouraged
people from applying but was considering whether future criteria
might include the energy rating of the property. The Department
would be consulting on this issue in 2004 with a view to revising
the Scheme in 2005.[7]
6. One way in which the Scheme could be improved
would be to talk directly with those most likely to need help,
such as pensioners, and to have a discretionary basis of help
directing resources to those who most need it. The Department
was undertaking a pilot scheme, Warm Zone Scheme, which involved
home visits. It was a three year trial in five zones, and once
the trials had been evaluated the Department would consider whether
the approach should be extended. The Department noted that to
address fuel poverty the only accurate and precise method depended
on calculating household income, which was a sensitive task. An
early finding from the Warm Zones trial estimated that around
20% of households refused assistance even when offered help. The
Department intended to carry forward the benefit health checks
it had begun and to consider improving targeting through a combination
of benefits passporting and energy efficiency rating.[8]
7. Certain groups of people have been under-represented
in the population of Warm Front grant recipients. Some areas of
England, for example the South West and Midlands area, and the
London and the South East area, received considerably fewer grants
than the North East and North West area. The Department attributed
this to a greater propensity for people in the northern areas
to be eligible for Warm Front assistance and to a greater acceptance
of the Scheme in the north than in the south.[9]
8. The Department acknowledged that rural areas had
been significantly under-represented both in Warm Front and, before
that, in the Home Energy Efficiency Scheme. The number of grants
to rural areas may have been lower for a number of reasons. Evidence
suggested that people in these areas responded less well to Scheme
marketing, such as advertisements and word of mouth endorsements
from friends and neighbours. It therefore required more effort
on the part of Scheme Managers to persuade them to apply. Rural
homes were also less likely to be on the gas network and more
likely to have solid rather than cavity walls. The range of options
available to them was limited because they fell into the category
of homes classed as 'hard to treat', although technological developments
were being researched that could help such homes. In other cases,
feasible options such as connection to the gas network for homes
a little way outside the current limit of 23 metres, cannot be
provided within existing grant maxima. These difficulties dissuaded
people from applying and meant that only minimal assistance could
be given to those that did apply. The Department had commissioned
National Energy Action to look at the barriers to take up of Warm
Front in rural areas and to identify ways of tackling these problems.[10]
9. The Scheme Managers have built up networks of
people such as local authorities, libraries, care trusts and other
agencies to assist them in reaching those most in need. These
networks included charities such as Age Concern, the clergy, ethnic
group leaders and district nurses who may be in touch with those
unlikely to refer themselves. The Scheme Managers acknowledged
that it was difficult to reach those who were oldest and coldest
as they did not necessarily respond to traditional marketing methods.
Success was dependent on building trust and confidence with other
agencies but this took time and investment. After three years
of effort, however, the approach was showing signs of success.
The Department had commissioned research on how to fast track
applicants who are in particular need, to move from a first come
first served basis of operation to a system involving queuing
and prioritisation.
3 C&AG's Report, para 2.6 and Figure 7 Back
4
Qq 2, 6, 22-25 Back
5
Qq 83-85, 90-91; English House Condition Survey 2001 Back
6
Qq 4, 12, 13, 60, 64-67; C&AG's Report, para 3.13, Figure
18 Back
7
Qq 18-28; Ev 21 Back
8
Qq 16-17, 40, 44-45 Back
9
Qq 93-94, 103 Back
10
Qq 11, 105 Back
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