Fuel poverty

update

Carbon Action Network

7 October 2014

Coventry

Dr Brenda Boardman, MBE, FEI

Emeritus Fellow

Lower Carbon FuturesEnvironmental Change Institute

University of Oxford

Income + housing

Low income High incomeEnergy

inefficient housing

Energy efficient housing

 Low incomeLow energy

costs15%

 

 High income Low energy

costs35%

 Low incomeHigh energy

costs11%

 High income High energy

costs39%

 

LIHC – new fp definition

Households in fuel povertyEngland

2013 2014 Change

Old definition

3.9m 4.82m +24%

New definition

2.35m 2.46m +5%

EBR and ACE (2014), Fuel poverty: 2014 update, p3-4

Minimum housing standards

Fuel poverty gap

The gap is the difference between the cost of what a fuel poor household should spend and the national average, both modelled

Those in F- and G- rated properties: gap grew from £426 to £1068 in real terms 2003 : 2012

For 81,000 fuel poor households in G-rated properties the gap is £1,702 pa on average

Target standards

2020 2025 2030

Strategy and fuel poor households, where ‘reasonably practicable’

Band C

EFPC and low-income households

Band E With 0.5m to Band C pa

Band C

Synergies: fuel poverty and climate change

• Poorest people concentrated in worst housing

• Upgrade to super energy-efficient, low-carbon housing

• Climate change = SAP 100 @ 750,000 pa• Fuel poverty = Band C @ 500,000 pa

Reasonably practicable

o ‘as many fuel poor homes as is reasonably practicable achieve a minimum energy efficiency standard of Band C, by 2030’

o Children’s Act: a ‘lack of resources’ is not the justificationo The aim should be 95% of homes (EFPC)

Why do people say ‘No’?

o Take-up rate:o First visit = 15-50%o Over time = 95% (several years)

o Just not the right moment - could be latero Fear and worry: will be worse than beforeo Hate intrusion, people in the home, disruption

Local Authority tasks

• HHSRS / minimum standards – no F and G-rated properties

• Health and Wellbeing Boards• HECA• Landlord register• Complete EPC coverage • Decent Homes 2

Rates of insulation

CWI LI SWI

2012 (CERT & CESP)

637,000 1,302,000 77,000

2013 (ECO, GD) 163,000 132,000 25,000

Change -74% -90% -68%

EBR and ACE (2014), Fuel poverty: 2014 update, p7

Area based approaches

• Low Carbon Zones (Warm Zone +)• One (or more) per local authority• Local authority co-ordinates• Works closely with community groups• Street-by-street• Focused on poorest housing• SAP 81 or better (A/B on EPC)

Working with communities

• Community groups act as go-between• Protect and speak for low-income residents• Arrange advice and non-standard measures• Are trusted • Help incorporate all households

Methods of funding policieso Through utility bills = EUETS, RO, FIT, ECO, WHD

o Regressive for the fuel poor as a groupo Particularly regressive for fuel poor who pay, but do not receive

o From taxes = RHI, WFPo Progressive – many fuel poor do not pay income taxo Benefits disproportionately to the rich

o Through regulationo Property owner responsibleo Opposite of privately rented consultationo Brings in some private money

Annual cost to individual customers of utility programmes (2013) (pre VAT)

o In 2014, perhaps £120 for fuel poor out of £1000 (12%) inc VAT

Electricity Gas Total

Warm Home Discount 6 6

ECO* 22 25

Smart meters* & better bills

1 2

FIT* 7 -

RO* 30 -

EUETS 8 -

Carbon price floor 5 -

Total 80 33 112

Some other issues

o Responsibilities of property owners for energy efficiencyo Mandatory minimum energy-efficiency performance standards for

housingo Starting with privately-rented sectoro Take an aggressive stance on improving the energy efficiency of the

homes of the fuel poor / low incomeo Subsidise if necessary through the Treasury’s infrastructure fund, for

instance instead of roads, especially capital expenditure = cheaper finance

www.eci.ox.ac.uk

Thank you

Workshop questions

Assumes some money available• Area-based approaches – what size? COA as in NI

(150 households)• How to link with local community groups?• How to employ local installers?• Property owner vs occupant? • How to link with HECA and HHSRS?