fuel poverty update carbon action network 7 october 2014 coventry dr brenda boardman, mbe, fei...
TRANSCRIPT
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
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?