Supplementary memorandum submitted by
the Department for Environment, Food and Rural Affairs (DEFRA)
Questions 82 and 116 (Mr Jenkins and Mr Davidson):
The use of energy efficient light bulbs
Paragraph 3.16 of the NAO Report makes reference
to expenditure of £14 million on light bulbs and draughtproofing.
This figure represents the approximate costs of all such measures
installed under the Scheme in 2001-02, ie two energy efficient
light bulbs for 303,000 households, and draughtproofing for 142,000
households. The approximate unit cost of these measures is, as
outlined in the report, £10 for the two light bulbs and £80
for draughtproofing.
The Committee asked how many households received
only lightbulbs. In 2001-02, 8% of all grants (24,240 households)
resulted in the only measure provided being energy efficient light
bulbs. The cost of measures for those jobs where only energy efficient
light bulbs and/or draughtproofing are provided is estimated at
£3.5 million, with an average saving of £58 per household.
The Committee also asked about the potential
savings arising from the installation of energy efficient light
bulbs. Work by the Energy Saving Trust estimated that savings
from an energy efficient light bulb would be around £10,
based on 1,700 hours use per year. This has recently been updated
to reflect reduced use of 1,275 hours per year, with savings of
around £7 per year. These show a positive benefit to the
expenditure of the household during the expected 8-10 year lifespan
of the bulbs of between £56-80. There will in addition be
a reduction in overall emissions of carbon dioxide.
The Committee may also wish to note that in
the Energy White Paper, looking at the overall potential for energy
efficiency savings to 2010, it was stated that the provision of
an additional 100 million energy efficient light bulbs could lead
to savings of around 0.5 million tonnes of carbon.
Question 92 (Jon Cruddas): Warm Zones
The Committee asked for information on the initial
evaluation of Warm Zones.
As explained in the NAO Report, Warm Zones are
a Government supported three-year pilot to systematically address
fuel poverty within specified localised geographical areas across
England. Five zones have been established since April 2001, in
Stockton on Tees, Newham, Sandwell, Northumberland and Kingston
upon Hull. Each of the Zones is supported by an energy supplier
and local authorities.
The Zones have adopted different approaches
to tackling fuel poverty, to identify and develop best practice
principles and processes. The overall aim is to facilitate the
efficient, integrated and appropriate delivery of practical measures
to alleviate fuel poverty and improve household energy efficiency
within the Zone.
This is achieved by providing a comprehensive
package of energy efficiency measures, drawing on funding from
existing programmes (eg Warm Front, Energy Efficiency Commitment
and local schemes) and negotiating funds from new sources to maximise
support. The scheme aims to maximise the benefits from the resources
applied by concentrating and co-ordinating activity in areas where
fuel poverty is believed to be particularly prevalent.
An independent evaluation of the Zones, managed
by the Energy Saving Trust, is currently underway. Initial findings
indicate varying experience across the five Zones. Key issues
are:
— Challenge in achieving targets set,
due to a number of issues, including a slow start in three Zones.
— A lack of robust data makes it difficult
to make a full assessment of the effectiveness of this style of
approach.
— A significant number of those receiving
help were not necessarily living in fuel poverty, while many fuel
poor households have not proved eligible to receive assistance.
— Partnership building and engagement
of community is essential, but time consuming.
The evaluation of the Warm Zones is continuing
throughout the trial. More time is needed to analyse and understand
the findings from the Warm Zones and their impact. We will be
considering as the evaluation continues and the findings will
feed into our ongoing consideration of the development and delivery
of Warm Front and other fuel poverty programmes.
Question 119 (Mr Davidson): Grants resulting only
in the provision of energy efficiency light bulbs in rural areas
In 2001-02, 24,240 households received only
energy efficient lightbulbs under the Warm Front Scheme. We estimate
that between 11-12% of grants awarded by Warm Front are to households
in rural areas, which would mean between 2,600 and 2,900 of these
grants were in rural areas.
Question 120 (Mr Rendel): The legislative basis
for the Warm Front Scheme
The Committee noted that some help was being
given to people who (by not being in fuel poverty) were not apparently
covered within the aims of the scheme; and asked whether there
needed to be changes to the secondary legislation that covers
the scheme to permit this.
As stated in the NAO Report, Warm Front is a
scheme which aims to reduce fuel poverty in vulnerable households
in England by improving the energy efficiency of their homes.
This is done through the installation of heating or insulation
measures and the provision of energy efficiency advice.
The scheme is delivered under the powers contained
in section 15 of the Social Security Act 1990 and subsequent Regulation.
This legislation enables the making of grants to improve the thermal
insulation of dwellings and the provision of energy efficiency
advice. It does not limit these measures to people who are in
fuel poverty; and, as all measures offered under Warm Front fall
into one or more of the categories described above, there is no
need for any changes in the secondary legislation to ensure that
the money is being used for the purposes set out.
The question of improving the targeting so as
to ensure that a higher proportion of people assisted by Warm
Front are in fuel poverty is a separate and important issue, which
was discussed at some length at the Committee's evidence session
on 22 October.
Question 132 (Chairman): Distribution of funds
to the non-fuel poor
All households assisted by Warm Front are considered
to be vulnerable. However, we acknowledge that not all of them
will necessarily be fuel poor. The Committee asked how much money
will have gone to people who are not fuel poor before the scheme
rules (currently under review) are changed.
On current estimates, between the start of the
scheme in June 2000 and the end of March 2004, it is expected
that £585 million will have been spent through Warm Front.
As noted in the NAO's Report, estimates of the proportion of funding
reaching households which are not fuel poor range between 40%
and 70%, which would lead to figures between £234 million
and £410 million since the start of the Scheme.
During the Committee's hearing we referred to
the work improve targeting of Warm Front. This is a key part of
our development work, but we also acknowledge the real challenges
that exist in establishing a cost effective and accurate way of
identifying all fuel poor households.
21 November 2003
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