Fuel poverty update Carbon Action Network 7 October 2014 Coventry Dr Brenda Boardman, MBE, FEI Emeritus Fellow Lower Carbon Futures Environmental Change Institute University of Oxford

Income + housing Low incomeHigh income Energy inefficient housing Energy efficient housing

Low income Low energy costs 15% High income Low energy costs 35% Low income High energy costs 11% High income High energy costs 39% LIHC – new fp definition

Households in fuel poverty England Change Old definition 3.9m4.82m+24% New definition 2.35m2.46m+5% EBR and ACE (2014), Fuel poverty: 2014 update, p3-4

Minimum housing standards

Fuel poverty gap The gap is the difference between the cost of what a fuel poor household should spend and the national average, both modelled Those in F- and G- rated properties: gap grew from £426 to £1068 in real terms 2003 : 2012 For 81,000 fuel poor households in G-rated properties the gap is £1,702 pa on average

Target standards Strategy and fuel poor households, where ‘reasonably practicable’ Band C EFPC and low-income households Band E With 0.5m to Band C pa Band C

Synergies: fuel poverty and climate change Poorest people concentrated in worst housing Upgrade to super energy-efficient, low- carbon housing Climate change = SAP 750,000 pa Fuel poverty = Band 500,000 pa

Reasonably practicable o ‘as many fuel poor homes as is reasonably practicable achieve a minimum energy efficiency standard of Band C, by 2030’ o Children’s Act: a ‘lack of resources’ is not the justification o The aim should be 95% of homes (EFPC)

Why do people say ‘No’? o Take-up rate: o First visit = 15-50% o Over time = 95% (several years) o Just not the right moment - could be later o Fear and worry: will be worse than before o Hate intrusion, people in the home, disruption

Local Authority tasks HHSRS / minimum standards – no F and G-rated properties Health and Wellbeing Boards HECA Landlord register Complete EPC coverage Decent Homes 2

Rates of insulation CWILISWI 2012 (CERT & CESP) 637,0001,302,00077, (ECO, GD)163,000132,00025,000 Change-74%-90%-68% EBR and ACE (2014), Fuel poverty: 2014 update, p7

Area based approaches Low Carbon Zones (Warm Zone +) One (or more) per local authority Local authority co-ordinates Works closely with community groups Street-by-street Focused on poorest housing SAP 81 or better (A/B on EPC)

Working with communities Community groups act as go-between Protect and speak for low-income residents Arrange advice and non-standard measures Are trusted Help incorporate all households

Methods of funding policies o Through utility bills = EUETS, RO, FIT, ECO, WHD o Regressive for the fuel poor as a group o Particularly regressive for fuel poor who pay, but do not receive o From taxes = RHI, WFP o Progressive – many fuel poor do not pay income tax o Benefits disproportionately to the rich o Through regulation o Property owner responsible o Opposite of privately rented consultation o Brings in some private money

Annual cost to individual customers of utility programmes (2013) (pre VAT) o In 2014, perhaps £120 for fuel poor out of £1000 (12%) inc VAT ElectricityGasTotal Warm Home Discount66 ECO*2225 Smart meters* & better bills 12 FIT*7- RO*30- EUETS8- Carbon price floor5- Total

Some other issues o Responsibilities of property owners for energy efficiency o Mandatory minimum energy-efficiency performance standards for housing o Starting with privately-rented sector o Take an aggressive stance on improving the energy efficiency of the homes of the fuel poor / low income o Subsidise if necessary through the Treasury’s infrastructure fund, for instance instead of roads, especially capital expenditure = cheaper finance

Thank you

Workshop questions Assumes some money available Area-based approaches – what size? COA as in NI (150 households) How to link with local community groups? How to employ local installers? Property owner vs occupant? How to link with HECA and HHSRS?