170,000 homes to be helped in 2010/11 through Warm Front Applicants already registered not affected Warm Front to be redesigned…
- 170,000 homes to be helped in 2010/11 through Warm Front
- Applicants already registered not affected
- Warm Front to be redesigned to better target the most vulnerable
Energy and Climate Change Secretary The Rt Hon Chris Huhne MP today announced that this year’s budget for Warm Front - the Government’s grant scheme in England to help vulnerable households - is fully allocated.
From today, the scheme will be unable to take new applications until the next financial year. Applicants who have already registered with Warm Front will not be affected. Around 76,000 heating and insulation jobs awaiting installation will be completed as far as possible by the end of March 2011.
“The Warm Front scheme is fully subscribed so it will be unable to take new applications for the remainder of this financial year. Those who have already registered will continue to be helped. Warm Front will be back and we will make the available funds work harder by focusing help on the oldest and poorest people.
“The coalition intends to tackle the underlying causes of fuel poverty by improving the energy efficiency of homes through our new Green Deal and by requiring energy companies, through the Warm Home Discount scheme, to provide financial support with fuel bills to more of the most vulnerable households.”
Immediate help this winter
- The Winter Fuel Payment remains at the higher rate of £250 for households with someone aged up to 79 years old and £400 for households with someone aged 80 or over.
- Cold Weather Payments of £25 per week are handed out to pensioners on Pension Credit, families with children under five on income-related benefit and disabled adults and children when the temperature drops to a certain level. So far, this winter, over nine million households will receive this payment.
- Energy suppliers are obliged under CERT - Carbon Emissions Reduction Target - to help the most vulnerable households install energy efficiency measures. The coalition has already taken steps to ensure this work is better targeted.
New help with energy bills from 2011 through Warm Home Discount
From April next year, energy companies will be required by law to give a discount on energy bills to more of their most vulnerable customers.
This is the new Warm Home Discount which replaces the old voluntary agreement with suppliers to provide help to vulnerable consumers. Over the four years of the scheme to 2015, the Warm Home Discount will be worth up to £1.1 billion and projected to help around 2 million households per year.
On 2 December, the government launched a consultation focusing on the detailed structure of the support scheme, including who should be eligible for assistance and how they will be targeted.
Changes to Warm Front for 2011/12
Warm Front will start taking new applications again next year but because the government is having to make savings across the board, it will be a smaller, much more focused scheme - totalling £210 million from 2011-2013. Today a consultation is launched on how exactly to target Warm Front better to ensure more of the help available reaches those who need it most.
Tackling the underlying causes of fuel poverty through the Green Deal from 2012
The coalition is committed to a new approach to insulate the country’s homes. This requires a comprehensive approach to energy efficiency - the Green Deal. The legislation was introduced to Parliament last week.
Through the Green Deal, many people will be able to pay back the upfront costs of home insulation work through the lower bills that will result. The coalition recognises that extra help is needed to provide more of the most vulnerable and fuel poor households with the basic heating and insulation measures needed to keep homes warm at a more affordable cost.
Therefore, energy companies will be required, under the new Energy Company Obligation (ECO), to help poorer customers and those in hard to treat homes, and to provide basic heating and insulation to the poorest and most vulnerable households.
ECO, which will replace CERT and CESP (Community Energy Savings Programme) when the Green Deal becomes available, will focus on insulation and improving heating systems - measures which help people manage their bills for the long term.
Notes to editors
- The Warm Front consultation document can be found on the Consultation page of the DECC website. The consultation starts today and closes on 9 February 2011.
- The Warm Home Discount consultation document can be found on the Warmfront consultation page of the DECC website. The consultation started on 2 December and closes on 14 January 2011.
- As announced at the Spending Review, the coalition will be taking a fresh look at the fuel poverty target and definition in the context of its commitment to focus available resources where they will be most effective in tackling the problems of underlying fuel poverty. In due course, we will announce more details on the terms of the Review and the Reviewer.