One in five now 'fuel poor'

11.52.00am GMT Mon 2nd Mar 2009

Norwich Lib Dems call for action on fuel poverty after a report reveals that nearly one in five homes in Norwich are classed as 'fuel poor'.

At next week's City Council meeting the Liberal Democrats will call on the council and local MPs to back Lib Dem MP David Haeth's fuel poverty bill which will be debated in parliament on March 23rd. Additionally, they will ask the government to investigate the failings of the 'Warm Front' initiative and call on the council to do more to tackle the problem in Norwich.

The fuel poverty bill has two main objectives. The first is the launch of a major energy efficiency programme to "fuel poverty proof" the homes of the fuel poor by bringing them up to the energy efficiency levels enjoyed by new homes. The second will be the use of social tariffs to limit vulnerable households' exposure to high energy bills.

The bill is of particular importance to Norwich as a report by Customer Focus estimates that over 14,000 homes (almost 1 in 5) in the city are in fuel poverty - 17.9% of households in the Norwich South constituency are fuel poor and 17.3% in Norwich North. This means Norwich is above the national average (17.2%) and above the average for the East of England (16.6%).

"It's scandalous that after 12 years of a Labour government our most vulnerable citizens are facing fuel poverty misery and will be dreading the arrival of their winter fuel bills, whilst energy companies continue to make massive profits. This Lib Dem parliamentary bill, if passed, will help people get on the right tariff and help them insulate their homes. Insulation will reduce their bills and help the environment. It is vital that the bill gets the support of local councils and our local MPs, particularly in the light of the Customer Focus statistics" Commented Lib Dem Councillor Judith Lubbock.

The Lib Dems will also highlight the failings of the government's 'Warm Front' energy insulation initiative, which was criticised by the National Audit Office last month. The report stated that many households vulnerable to fuel poverty were not claiming the relevant benefits to get the grants, some homes who received the grants were not in fuel poverty and many households applied but then pulled out over expensive top-up fees. It concluded that £34 million worth of grants had been offered to homes already energy efficient.

"There are two main problems with scheme - the eligibility criteria and a lack of access to information. People do not always claim the benefits and grants they are entitled to because they are unable to access the information. Meanwhile, grants were given to people who were already relatively energy efficient costing the taxpayer £34 million. The government really needs to get on top of the issue." said Cllr Lubbock

Recently the City Council's Older People's Commission highlighted that access to information was a particular problem for elderly people in the city.

"Now the council has recognised that access to information is a problem we need to improve the situation. Instead of the Labour government closing post offices maybe they could turn them into 'one stop shops' for information and advice on things like energy bills and benefits. Clearly, we need to start looking at innovative solutions to tackle fuel poverty and improve access to information in the city." said Cllr Lubbock.

Notes:

The definition of fuel poverty is when a household needs to spend more than 10% of their household income on all domestic fuel use including appliances to heat their home to an adequate level of warmth.

The National Audit Report (summary and press release) can be found here: http://www.nao.org.uk/publications/0809/the_warm_front_scheme.aspx

Cllr Judith Lubbock will move the following motion at next week's City Council meeting (Tuesday 7:30pm at City Hall):

Motion - Fuel Poverty

Councillor Lubbock to move:

'This Council notes:

The Government estimates that fuel poverty currently affects 2.5 million households in the UK.

The Warm Front Energy Initiative, a key component of this government's fuel poverty strategy, is failing as according to a February 2009 National Audit Office report:

57% of vulnerable households in fuel poverty do not claim the relevant benefits to qualify for the scheme;

75% of households, who qualified under the scheme, were not necessarily in fuel poverty;

£34 million in grants was awarded to comparatively energy efficient households;

11,020 qualified householders, who applied to the scheme in 2008-09, pulled out because they were unable to afford the top-up fees to the grant to cover the cost of upgrades.

Many older people in Norwich, most vulnerable to fuel poverty, are unable to access information about which benefits they are entitled to, according to the Council's Independent Commission for Older People.

David Heath MP introduced a Fuel Poverty Bill to Parliament on January 21, with a second reading scheduled for March 20. This bill includes two measures:

A major energy efficiency programme to bring existing homes up to the current energy efficiency levels enjoyed by modern homes;

Social tariffs to limit vulnerable households' exposure to high energy bills.

This Fuel Poverty Bill is backed by a wide range of organisations including Age Concern, the Centre for Sustainable Energy, and the Child Poverty Action Group.

This Council resolves, in view of the impact of fuel poverty on the people of Norwich, to ask the:

(1) Leader of the Council to write to David Heath MP in support of the proposed fuel poverty bill and to Dr. Ian Gibson MP and Charles Clarke MP to ask them to support the bill;

(2) Leader of the Council to write to Energy Secretary Ed Miliband and Environment Secretary Hilary Benn asking them to re-evaluate the Warm Front Scheme in the light of the National Audit criticisms, particularly the eligibility requirements and funding arrangements;

(3) Executive to consider, in relation to fuel poverty, how to implement the recommendation set out in the Independent Commission for Older People report to use its financial inclusion initiative as a means to improve access to information for older people.