11th September 2008

According to a government statement households in the UK can now get help to save up to £300 every year on energy bills, thanks to new energy saving measures which form part of a £1 billion package.

The Home Energy Saving Programme provides assistance to householders to make their homes more energy efficient. For those most at risk of fuel poverty, including all pensioners, it will give help with their bills this winter through the winter fuel payments and lower energy company tariffs.

Environment Secretary, Hilary Benn said: “The Government has a longstanding commitment to help those living in fuel poverty, but recent price rises mean we are committed to do even more to assist people in reducing their bills where possible. And energy companies must do their bit too.

“This plan is about giving help, not only over weeks and months, but over the coming the years by enabling householders to make their homes more energy efficient.”

The Government will propose legislation to require an estimated £910 million commitment from energy companies including, for the first time, energy generating companies, to invest in making homes more energy efficient.

Around £560 million of this £910 million will add to the existing energy efficiency programme CERT, which funds subsidised improvements such as loft and cavity wall insulation. Eleven million elderly and low income households qualify for these measures at no cost. This extra funding could benefit up to two million households.

The remaining £350 million of the £910million from energy companies will go towards a new Community Energy Saving Programme. Throughout the country, local councils, voluntary organisations and energy companies will carry out house-to-house calls to offer help in some of the most deprived areas of the UK. This could result in as many as 100 schemes across the country.

In addition, those most at risk of fuel poverty will benefit from an increase Cold Weather Payments from £8.50 to £25 per week for winter 2008/09 and around 40,000 households could see their fuel bills reduce by £180 per year on average, thanks to an extra £74 million of public money over the next two years to the Government’s Warm Front scheme. This offers up to £2,700 worth of central heating and energy efficiency measures to low income and pensioner households.

However Gordon Lishman, Director General of Age Concern, said: “This package will leave millions of the poorest pensioners wondering how they will afford their bills this winter. Energy efficiency measures are important to tackle fuel poverty in the long-term, and increased cold weather payments are welcome. However, wider pricing reforms are desperately needed to reduce fuel poverty levels and the millions of pensioners struggling to meet their bills will be disappointed that no further emergency help has been announced for this winter.

“The Government must recognise that energy efficiency measures alone will not solve the fuel poverty crisis. A new fuel poverty strategy is urgently needed. As part of wider reforms action needs to be taken to improve social tariffs which are currently unfit for purpose and address pricing inequalities leaving poorer households paying higher rates. We also feel there are concerns about the Warm Front and Cert energy efficiency schemes which need to be addressed in order for help to reach those who need it most.”

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