DEPARTMENT FOR
ENVIRONMENT, FOOD AND RURAL AFFAIRS News Release (News Release ref :
300/08) issued by COI News Distribution Service. 11 September 2008
The Government
today announced a £1 billion package, which will enable households
to take advantage of help that could save them over £300 every
year on their energy bills.
The Home Energy Saving Programme provides assistance to
householders to make their homes more energy efficient, and for
households most vulnerable to fuel poverty, including all
pensioner households, gives help with their bills this winter
through the winter fuel payments and lower energy company tariffs.
In achieving this, the Government will comply with its legal
obligation to engage with all interested parties.
The Government will propose legislation to require an estimated
£910 million commitment from energy companies including, for the
first time, electricity generating companies, to invest in making
homes more energy efficient. This will be in addition to the
existing obligation on companies to spend £2.8 billion over the
next three years helping customers save energy. Together with the
Government's own spending programmes, this will create a £6.5
billion programme of improvement to the nation's housing
stock - the largest since the introduction of North Sea gas. The
Government's aim is the insulation of all Britain's
homes, where practical, by 2020.
Around £560 million of this £910 million will add to the existing
energy efficiency programme CERT (Carbon Emissions Reduction
Target) - 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 £910 million from energy
suppliers and electricity generators 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.
To make sure people get the most help the Government is launching
a nationwide advertising campaign informing people about the
support available. To further help them save money it will also
encourage people to compare suppliers to get the best energy
deals, use direct debit, and take advantage of money off deals on
energy efficient products. Adverts will appear in national
newspapers tomorrow, followed by television adverts later this
month. For advice on help available ring the helpline 0800 512 012.
In addition to measures announced previously in the Budget the
package also includes further, new support for those most at risk
of fuel poverty:
* We will increase Cold Weather Payments from £8.50 to £25 per
week for winter 2008/09.
* 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.
This is in addition to the measures announced in the Budget which were:
* For this winter, households with someone over 60 will receive
an extra £50 on their Winter Fuel Payment (up from £200 to £250)
with an extra £100 for over-80s households (up from £300 to £400).
* Around 600,000 customers' accounts could benefit from
discounted tariffs by the end of the year and around three
quarters of these will be benefiting from a price freeze this winter.
* If analysis shows that pre-payment users face unjustifiably
high charges and no solution is offered by the energy suppliers
and the regulator, we will consult on legislation to reduce any
unjustified tariff differentials.
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 years by enabling householders to make
their homes more energy efficient."
Business Secretary, John Hutton said:
"In a world where prices are likely to remain high,
it's time for all of us to get more energy efficient. Thanks
to Government and energy companies working closely together, an
extra £1 billion will be available to spend on measures that will
bring a lifetime of savings."
Notes to editors
1. Proposed new money from the energy companies and
generators:
* £910 million towards the National Home Energy
Saving Programme - £560 million directly into the existing home
insulation and energy efficiency programme (CERT) and £350 million
for Community Energy Saving Programme.
New money from the Government:
* An extra £74 million for home insulation and central heating
(Warm Front).
* An estimated £16 million for cold winter payments.
* In addition £800 million was announced as part of the Budget
deal (£575 million in winter fuel payments and an additional £225
million from the energy companies to be spent on their social
programmes) which will bring the total new spending this winter to
£1.8 billion.
2. £300 pounds is an approximate figure saved through installing
loft and cavity wall insulation plus replacement of all ordinary
lamps with low energy lightbulbs, as well as switching appliances
off standby. Based on estimated benefits to people on an average
tariff rate in a standard three-bedroom semi detached house with a
standard heating pattern and a mixture of gas (dominant) and
electric heating.
3. The Community Energy Saving Programme is a proposed new legal
obligation on the energy companies on which the Government will
consult to achieve further investment in energy efficiency
measures targeted on area based activity, particularly in areas of
high deprivation. The aim of the programme would be to raise the
take-up and efficient delivery of energy efficiency measures
through street-by-street approaches. We envisage area-based
schemes being carried out through partnerships for example between
local authorities, community organisations and social enterprises:
* Some energy companies may wish to join or establish such
partnerships; others may wish to sub-contract their obligation to them.
* Warm Zones, EAGA and other organisations could be used. In
addition, suppliers could work through the Green Neighbourhoods Scheme.
4. The CERT (Carbon Emissions Reduction Target) scheme, which
came into effect on 1 April 2008, doubled the previous obligation
on energy companies to help people make their homes more energy
efficient and reduce household carbon emissions. Prior to
today's announcement the total investment required by the
energy companies was around £2.8 billion over three years to 2011.
Today's announcement about the intention to raise the CERT
target by 20% increases this by £560 million. On top of this the
new Community Energy Saving Programme will require a further
investment of around £350 million. The total energy company
contribution will therefore be more than £3.7 billion between now
and March 2011.
5. Those eligible to receive Cold Weather Payments are
pensioners, disabled people and families with a child under five
or a disabled child receiving Pension Credit, Income Support,
income-based Jobseeker's Allowance, and income-related
Employment and Support Allowance.
6. The announcement today that the Government will increase
spending on the Warm Front programme by £74 million takes it total
spending on this programme to £873 million over the period to
March 2011. The Government is also spending around a net £2
billion on energy efficiency improvements in council homes under
its Decent Homes programme. This takes the Government's
total spending to £2.8 million. Combined with the £3.7 billion
spending required by energy companies, the total national
programme of energy efficiency investment will therefore come to
around £6.5 billion over the next three years.
7. In achieving this, the Government will comply with its legal
obligation to engage with all relevant stakeholders.
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