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Friends of the Earth Scotland Policy Briefing Paper QuickTime™ and a decompressor are needed to see this picture. 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 QuickTime™ and a decompressor are needed to see this picture. 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]