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Friends of the Earth Scotland Policy Briefing Paper
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Funding Methods and Schemes in the UK
17 November 2010
Introduction
In relation to implementing the Climate Change Act, we are also thinking about a
campaign ‘Another World is Possible’ which would build on the 42% Better report and
would seek to liaise with trade unions and others to look at major emissions sources and
pull together case studies and actions to move towards a more sustainable future.
There are two schemes that are being funded by the Scottish Government – the Home
Insulation Scheme (HIS) and Energy Assistance Package (EAP) - to help households that
fall into the fuel poverty bracket by offering free information, free insulation and interest
free grants and loans.
Home Insulation Scheme (HIS)
1.
Introduction
The Home Insulation Scheme offers cavity wall and loft insulation to homeowners at a
negotiable price with an interest free Energy Saving Scotland home loan or sometimes the
insulation may even be free if the existing insulation is between 60-160mm. The scheme
will allow homeowners who wish to sell their property now or in the future easier and will
also allow new jobs to be created within the energy sector.
The HIS is funded by the Scottish Government offering £15 million from 2009 to 2010
where the aim is to offer energy saving measures to reduce greenhouse gas emissions
and to tackle fuel poverty by allowing homeowners to save money on their fuel bills. For
2010-2011, the Scottish Government drew up a new budget to create a Universal Home
Insulation Scheme (UHIS) by increasing the budget to £25 million where £10 million is to
offer free insulation to around 90 000 homes.
The Energy Saving Trust is the managing agent for the scheme, working with local
authorities and other agencies as appropriate. It began in a limited number of areas
nominated by local authorities that covered almost 100,000 households. By April 4th, there
were 21,374 referrals for the HIS. Households assessed as being vulnerable to fuel
poverty are referred to the Energy Assistance Package for further support which has
boosted the number of referrals.
2.
Annual Reports
The marketing scheme started in September 2009 ahead of the launch of the doorknocking phase which started on 2nd November 2009 which involved assessors going to
each house individually in each area to provide energy advice to householders and inviting
them to sign up for insulation measures where appropriate. The first measures were
installed from the beginning of December 2009.
By 4th April, all occupied houses (95 079) in the target areas were split into the following
categories:
(a) 44 627 (46.9%) homes had participated by providing information through a Home
Energy Check to allow assessment of their eligibility for referral for insulation etc.
(b) 17 700 (18.6%) homes had been unwilling to participate.
(c) 32 752 (34.5%) homes had not been in their homes after three separate visits.
There had been 32 271 referrals of all types which included:
 21 374 referrals for HIS insulation measures.
 967 referrals for insulation measures under EAP.
 7 044 referrals for tariff/benefit checks under EAP.
By 2nd May, 4319 insulation measures had been installed from HIS referrals producing an
average saving of £2042 over the life of the measures. In total, this will reduce 46 419
tonnes of carbon dioxide over the life of the measures.
From the figures that are available, it is apparent that the rate of conversion from referrals
to installations and amount of carbon reduction appear to be low. However, installations
are still continuing so these figures are expected to improve.
Energy Assistance Package (EAP)
1.
Introduction
A new fuel poverty scheme, the Energy Assistance Package, was introduced and funded
by the Scottish Government in April 2009 that is managed by the Energy Saving Trust
which replaced the previous Central Heating Programme and Warm Deal schemes. The
EAP aims to cut bills, increase incomes and improve the energy efficiency of homes.
The package provides energy saving advice by surveying how energy efficient homes are
and then suggests changes and improvement methods. Some households may qualify for
a new boiler, central heating system and insulation.
There are four stages to the scheme:
Stage 1
Offers free expert energy advice to everyone.
Stage 2
Provides a benefits and tax credit check as well as advice on low cost energy
tariffs to those at risk of fuel poverty.
Stage 3
Provides a package of cavity wall and loft insulation to households with the
elderly or on benefits.
Stage 4
Offers a package of central heating and enhanced energy efficiency
measures to those who are most vulnerable to fuel poverty.
2.
Marketing
Marketing on the EAP began in July 2009 to generate awareness and to gain a response
from a large audience. Campaigns at national and local levels were launched with
partnerships to carry the measure to hard to reach groups. Methods of marketing included
sending mass media messages over the radio and TV, sending out personal mailings to
homes with the potential of eligibility and local activities. Further marketing was
implemented in February 2010 raising more referrals across all stages of the EAP. There
has been a notable pattern throughout the year in the rise of enquiries following particular
marketing initiatives but then a decrease again. However the levels of awareness are
always increasing.
In July when uptake was low, personal mailings to Scottish Gas customers were sent out
to those most likely to be eligible and this led to an increase of applications and uptake of
Stage 4 of the EAP. Public relation activities and press advertising were carried out due to
the mild November that was followed by a cold snap in late December. Area door knocking
under the Home Insulation Scheme also brought more referrals in this period. An
extension of the eligibility of Stage 4 allowed households with a SAP rating of below 55 to
be referred to Stage 4.
Further amendment to the regulations laid out in Parliament on January 2010 came into
effect on the 10th May which extended the eligibility for Stage 4 to all families with children
under 16 living in energy inefficient homes as well as families on other benefits. These
changes have allowed more people to take up the scheme and helped increase the
number of people living in fuel poverty to receiving help under the package.
There have been talks on whether to include people with cancer, chronic illnesses or
disabilities to be eligible for this scheme. However, extending the eligibility to include these
groups for Stage 4 measures would remove the main aim of the programme which was to
target those most vulnerable to fuel poverty. Without extra funding, widening the eligibility
would delay or deny those in fuel poverty in receiving help.
Summary of the targets achieved from Table 1:
Stage 1
Did not reach target but this is reasonable since marketing only started three
months into the year.
Stage 2
Did not achieve target again and is disappointing judging from the number of
referrals. Target may have been over-ambitious but may mean that more
work has to be done to convey a new holistic approach. There’s generally a
low take up of benefits and lack of awareness of energy supplier social tariffs
so more focus should be made on this.
Stage 3
Performance is good if grants to social housing sector are included.
Arrangements to run Stage 3 and 4 simultaneously should boost Stage 3
figures in future.
Stage 4
Overshot target by 50% in number of referrals with conversion rate of
referrals to installations running over 60% by the end of May.
Table 1
Targets for the EAP Scheme
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By 31st May, at least 63% of the 15 066 referrals have received or are likely to receive
Stage 4 measures, of which 92% include heating system measures. The status of this
cohort at the end of June will be reported in July.
3.
Annual Reports
By the end of February 2010 over 100 000 people had been helped by the EAP where the
income of the families saw an increase of over £2000 a year and pensioners saw an
increase of £1000 a year in their income.
The main outcomes of the annual report are:
67 144
Households received initial advice
1326
Pensioner households improved their income by an average of £1681 per
year through a benefit check;
167
Households moved on to a social tariff that saved an average of £118 per
year
2576
Households installed insulation that saved an average of £115 per year
>26 000
Households in social rented housing are receiving energy efficiency
measures
>11 500
Households are receiving heating system measures (63% through the EAP
and 37% carried over from earlier programmes).
Conclusion
The Home Insulation Scheme offers free insulation to homeowners who fall under a
certain category and the marketing strategy was based mainly on assessors carrying out
door knocking in targeted areas vulnerable to fuel poverty. Just under half of the homes
targeted participated in the scheme. The EAP has helped over 100 000 people with a
notable rise in income for households with the elderly and those on benefits. The
marketing scheme included radio and TV advertising, sending out personal mailings and
running local activities. It can be seen from both schemes that raising more awareness
would generate more interest in people taking up referrals.
The two schemes are similar in that they both offer home insulation to those living in fuel
poverty. However the EAP provides a more well rounded approach to tackling fuel poverty
in that it provides energy saving advice, a benefits and tax credit check as well as
insulation measures. The EAP is open to everyone in Scotland to improve the energy
efficiency of their homes whereas the HIS specifically targets those in selected areas that
suffer most from fuel poverty through door knocking. Those eligible for HIS tend to be
referred to the EAP for further energy efficient advice.
For further information contact:
Bing-Yea San
Energy Efficiency Campaigner
[email protected]