Fifth Special Report
1. On 28 February the Committee decided to examine
the UK Energy Efficiency Action Plan, with particular reference
to Defra's efforts to improve households' energy efficiency and
its statutory duty under the Warm Homes and Energy Conservation
Act 2000 to ensure that, as far as reasonably practicable, people
in England do not live in fuel poverty after November 2016. This
was designed to build on some of the Committee's work during its
inquiry into Climate change: the "citizen's agenda".
2. The Committee invited interested parties to help
devise the scope of the inquiry by suggesting areas which the
Committee could usefully examine, particularly those where they
believed that Defra policy is still weak. We received 23 responses.
3. Having reviewed these comments, on 17 July we
issued a formal call for evidence with the following terms of
reference:
- Defra's Departmental Report
2008 shows slippage against PSA 7 on eliminating fuel poverty
in vulnerable households by 2010, with a rise in the number of
households in fuel poverty. Does Defra need to redefine its approaches
to ensure it meets the statutory 2010 target?
- How effectively can policies aimed at addressing
the energy efficiency of dwellings tackle fuel poverty, given
recent rapid increases in fuel prices, and how can strategies
be developed to join up energy efficiency approaches with those
on fuel prices and income maximisation?
- Does the UK Energy Efficiency Action Plan 2007
give sufficient weight to the need to address fuel poverty
as well as tackle greenhouse gas emissions through increased use
of energy efficiency measures? [1]
- What should be the comparative contribution of
government and energy supply industry programmes to achieving
fuel poverty objectives, and what levels of investment are required
(for example for Warm Front, the Carbon Emissions Reduction Target
(CERT) and the Supplier Obligation post 2011)? How can these programmes
be better integrated?
- What should the longer term strategies be, in
particular for those in the social housing sector after Decent
Homes,[2] and what role
should the energy supply industry have post CERT (post 2011)?
- How can we make greater progress on hard to treat
homes (for example solid wall properties or those not connected
to mains gas supplies)?
- How should smart metering, new technologies and
microgeneration be deployed and incentivised in fuel poverty approaches?
Is there sufficient scope in current approaches to apply the most
appropriate solutions?
- Is there a problem identifying those who are
already, or are at risk of becoming, fuel poor, and how can data
sharing across the public and private sector be improved so that
assistance can be targetted?
- What are the specific issues for new homes and
how can strategies ensure that all new homes minimise the potential
for occupiers to experience fuel poverty?
- How does the Winter Fuel Payment system impact
on fuel poverty and could this funding be better utilised to tackle
the underlying issues leading to households becoming fuel poor?
4. On 11 September 2008 the Prime Minister announced
a package of measures to enable households to improve the energy
efficiency of their homes. On the same day, the Committee invited
people to comment on this package when they submitted evidence.
By 9 October, we had received 57 memoranda. We are very grateful
to those who took the time and trouble to respond to us on this
important matter.
5. On 3 October the Prime Minister created a new
Department of Energy and Climate Change. Among the responsibilities
of the Department for Environment, Food and Rural Affairs (Defra)
that passed to the new Department was fuel poverty.
6. Our task is to examine the expenditure, administration
and policy of Defra on behalf of the House. Given this change
in its remit, we decided on 7 October not to proceed further with
this inquiry.
7. We expect a new select committee to be set up
to examine the expenditure, policy and administration of the new
Department. That Department will have responsibility for energy
policy and pricing as well as fuel poverty. It may be that the
new committee wishes to examine fuel poverty and related matters
such as energy pricing, energy efficiency programmes and the energy
market. We have therefore decided to publish the memoranda we
have received so that that committee may read what we have been
told, and so that other interested parties can have access to
the information.
8. Government data shows that in 2006 there were
3.5 million UK households in fuel poverty but fuel price rises
since have led to estimates of 4 million households being in fuel
poverty in England alone, an increase from 1.2 million in 2004,
with 80% of these households estimated to be vulnerable.[3]
The dramatic rise in the number of people living in fuel poverty
means that the Government's targets that, as far as is reasonably
practicable, by 22 November 2016 no person in England should have
to live in fuel poverty, and that it will seek an end to fuel
poverty in vulnerable households by 2010, are in great danger
of not being achieved. We therefore recommend that the new
select committee set up to examine the expenditure, policy and
administration of the new Department of Energy and Climate Change
seriously consider holding an inquiry into fuel poverty at the
earliest opportunity.
1 The UK Energy Efficiency Action Plan sets out policies
on how the UK will meet the EU Energy End-Use Efficiency and Energy
Services Directive target of a 9% energy saving by 2016. Back
2
The government definition of a decent home is one which is dry,
safe and warm, has a relatively modern bathroom and kitchen and
is in a good state of repair. In 2003 the Government published
the Communities Plan which included a requirement for all Local
Authorities to bring all of their homes up to the Decent Homes
Standard by 2010. Back
3
Vulnerable households are deemed to be ones containing children,
or those who are elderly, sick or disabled. Back
|
