Select Committee on Communities and Local Government Committee Minutes of Evidence


Examination of Witnesses (Questions 147-159)

MS GILL OWEN

19 NOVEMBER 2007

  Q147 John Cummings: Your submission repeatedly notes the lack of serious engagement by the Department for Communities and Local Government in cutting fuel poverty and carbon emissions among those with low incomes. Can you advise the Committee what you think the Department is failing to do and what you would like to see?

  Ms Owen: There are a number of key areas that we would like DCLG to address

  Q148  John Cummings: Can you start with what they are failing to do, and then come on to what you would like them to do?

  Ms Owen: It is the same really, and you can see it in different ways, but basically we have a problem at the moment, which is highlighted in our submission, about data sharing and the way in which local authorities share data. We think the DCLG has an important role there in helping to sort that out so that local authorities can do that. That is one of the key things we would like to see addressed. The second area is that we are very disappointed with the Decent Homes Standard and the degree to which properties can be improved to meet the Decent Homes Standard but still leave households in fuel poverty. Those are the two key areas.

  Q149  John Cummings: Why do you think it is important for local authorities to share information? Who would collect it: the Department centrally? Then what would you expect the Department to do with it?

  Ms Owen: At the moment local authorities, through their departments which handle council tax and housing benefit, know where the households are that would be eligible for the Government grants, and the two key Government incentive programmes: the Warm Front Scheme and the Energy Efficiency Commitment. At the moment those bits of the local authority cannot share that information with another bit of the local authority that might be running a local programme to encourage people to take up those grants. For example, a local authority might be working with energy companies or voluntary groups to do that, and they cannot share that information. We think that that is silly and that they should be able to share that information. We have been encouraging that to happen. It has not happened yet. In the Energy Bill that will be going through Parliament in the next Session, the Government will have a clause in that which will enable the Department of Work and Pensions, for example, to share some information with the energy companies which operate the Energy Efficiency Commitment. It is happening there, so we think it is ironic that two ends of a local authority cannot share information between themselves, without breaching obviously important concerns about data protection, but to make sure that people who are eligible for grants get them. Many low-income households, particularly the most vulnerable, do not take up grants and a lot of effort goes into trying to find them. There is a ready-made base here of people, but it is just the ways in which that information is shared.

  Q150  Mr Betts: Was the Decent Homes Programme a missed opportunity?

  Ms Owen: Yes, we think it was. The Decent Homes Programme basically sets standards within a number of things, including for insulation and heating standards. At the moment, a house can meet those standards if it is has some insulation but not necessarily to the level that might be recommended today. It does not have to have loft and cavity-wall insulation; it could have one or the other. A property can meet the Decent Homes Standard with electric heating, and in many places that heating will not remove the household from fuel poverty. We really do think it is a missed opportunity in a number of areas. In tower blocks, for example, we might use CHP schemes and so forth, which are not likely to be done because of the cost implications. You meet the Decent Homes Standard in a lower cost way.

  Q151  Mr Betts: What do you think should happen? We are much of the way through the Decent Homes Programme and many houses have been done, and some social landlords have met high standards. Where do you think the programme should go next? Should they change the standard halfway through or should we be looking at a new standard following on from this programme?

  Ms Owen: I think it is right that a number of local authorities are going beyond the minimum. One of the things we would like to see the DCLG do is encourage local authorities. Obviously, it is difficult when you have passed the standard itself and it does not require you to go higher, but perhaps sharing information between authorities that have done. Our recommendation is that authorities should do as much as they can within the Standard, but we suggested that it should be increased from 2010, so there is an opportunity there to take it forward so that homes do come up to a 65 SAP rating, which by and large will take households out of fuel poverty.

  Q152  Mr Betts: When the Committee looked at the Decent Homes Standards a few years ago it was suggested that there should be a Decent Homes Plus to follow on.

  Ms Owen: Yes, I think a Decent Homes Plus—that is right, would follow on.

  Q153  Mr Betts: You have established on Warm Front that it was actually higher than required in the social rented sector.

  Ms Owen: Yes.

  Q154  Mr Betts: Do you think Warm Front by and large is absolutely right in terms of the standards?

  Ms Owen: Yes, I think so. Warm Front generally is putting in gas central heating where it can and raising insulation levels. There are some issues with Warm Front, obviously, because there is a maximum amount that can be spent on each property, and sometimes that is not enough, and so there are issues about how you finance that. However, the standard that it aims to set is aiming at the right level. Clearly, there are difficulties with solid wall properties where you cannot have a cavity wall solution, and that is difficult, but generally we think that is the sort of standard which will remove households from fuel poverty.

  Q155  Mr Betts: Is there sufficient resource in Warm Front to deal with the number of properties? Are you finding everybody who wants the programme gets it or are some being left out?

  Ms Owen: There are resource constraints, yes. We have recommended that Warm Front will need more resources, and we have had some concerns that Warm Front resources may not be maintained at the level that they have been recently in future years. Warm Front does need more resources, and there is also an opportunity to combine Warm Front funding with the Energy Efficiency Commitment funding that comes to the energy suppliers. Again, local authorities have an important role there in helping to pull those things together at local level; but there is clearly a need for more resources, particularly if the Government's targets are to be met.

  Q156  Chair: Have you made an estimate of how much extra resources would be required?

  Ms Owen: Yes, we have. I am not sure I have the figure with me, but we can certainly send it to you.

  Q157  Chair: Can you let us have it, and make it clear how much you think is the extra that would be needed for Warm Front and how much for Decent Homes?

  Ms Owen: Yes, I can do that.

  Q158  Chair: Do you think that if Decent Homes and Warm Front were adequately funded that that would deal with everybody in fuel poverty, or are there any other groups that—

  Ms Owen: They should actually, because Decent Homes will deal with the social housing sector and the Warm Front Programme will deal with the private sector. The main difficulty in the private sector is finding particularly people in private rented properties and getting them to take up the measures. If the other resources were there, through those two mechanisms I think we could cover all sectors. We would still have take-up problems, which partly comes back to this data-sharing issue about how you find people.

  Q159  Martin Horwood: Is there not a problem with Warm Front in that people who own the properties—talking about private landlords—are not even paying the fuel bills, so there is not much incentive, is there?

  Ms Owen: I think that is right, and that is where use of the Housing Health and Safety Rating System is important in encouraging landlords to take up the grants. You are right, that tenants have to get the landlords' permission and the landlords are not paying the bill and are not terribly interested. The way in which you can influence landlords gets difficult without regulating that landlords have to take up this grant in some way or another.



 
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