EAST LOTHIAN FUEL POVERTY STRATEGY November 2008 CONTENTS Summary……………………………………………………….….3 1.0 Introduction…………………………………………………….….7 2.0 Guidance on Tackling Fuel Poverty and Preparing Fuel Poverty Strategies………………………………………………10 3.0 Local Strategic Context…………………………………………11 4.0 Strategy Development………………………………………….18 5.0 The Incidence of Fuel Poverty in East Lothian………………20 6.0 National Policies and Initiatives Impacting on Fuel Poverty and Strategic Context……………………….……………………….22 7.0 Strategic Objectives…………………………………………….28 8.0 Action Plan and Monitoring and Evaluation………………….38 9.0 Resources Available …………………………………………..39 10.0 Risk…………………….……………… ………………………..41 11.0 Conclusion………………………………………………………44 Appendix 1. Consultation Summary 2. Fuel Poverty Maps 3. Action Plan 4. Monitoring and Evaluation Framework 5. Risk Register Glossary and Abbreviations 2 Summary Fuel poverty is a situation where householders are unable to afford the purchase of sufficient fuel to ensure that reasonable household comfort requirements are attained it is caused by a combination of factors including: low household income; poor insulation standards; inefficient heating systems; lack of access to cheaper fuels; and household behaviour and under-occupancy of properties. The East Lothian Fuel Poverty Strategy outlines how East Lothian Council and its partners intends to facilitate delivery of the Scottish Government’s target of eliminating fuel poverty by 2016. This target was set out in the Scottish Fuel Poverty Statement published in 2002 to meet the requirements of section 88(1) of the Housing (Scotland) Act 2001. Local authorities have a responsibility to prepare Local Housing Strategies that ensure as far as reasonably practicable that persons do not live in fuel poverty. Due to increases in unemployment and fuel prices since 2002, when the Scottish Government issued its fuel poverty statement, the interim target of reducing fuel poverty by 30% by 2006 has been missed. The Scottish Government have defined that a household is in fuel poverty when: ”in order to maintain a satisfactory heating regime, it has to spend more than more than 10% of its income (including housing benefit or Income Support for Mortgage Interest) on all household fuel use” The Scottish Government have produced guidance for local authorities on preparing a fuel poverty strategy covering: measurement of fuel poverty; maximisation of household income; 3 improvement in energy efficiency, including installation of insulation and renewable energy systems; provision of energy advice; and promotion of mechanisms to reduce fuel costs. The guidance also stresses the importance of corporate commitment to the Strategy. In addition, the guidance advises the Strategy considers how the objectives of eradicating fuel poverty would impact and be impacted on by cross cutting issues addressed through Community Plans. A steering group was set up by the Council to oversee development of the East Lothian Fuel Poverty Strategy and consultation was facilitated via a session of the East Lothian Housing Forum and invitation to comment on the strategy. There was also discussion with other organisations involved in activities that impact on fuel poverty in East Lothian. In preparing the strategy account was taken of the context set by national and local initiatives and other strategies that impact on fuel poverty, such as: the Home Energy Conservation Act (1995); the Scottish Housing Quality Standard; and the Scottish Government Warm Deal and Central Heating Initiatives. The strategy steering group set seven strategic objectives for the strategy, which, following consultation, were reduced to six. These objectives will address the principal causes of fuel poverty in East Lothian: Strategic Objective 1: Identify level of fuel poverty in East Lothian and measure progress towards its elimination; Strategic Objective 2: Identify fuel poor households and direct them to appropriate assistance; Strategic Objective 3: Provide fuel poverty advice and information services; 4 Strategic Objective 4: Provide benefits and money/debt advice; Strategic Objective 5: Reduce the cost of heating fuel; and Strategic Objective 6: Increase energy and fuel efficiency in all tenures. Achieving these objectives will involve delivery of 15 identified actions and require consolidation of existing partnerships and development of new partnerships and referral mechanisms between key groups whose activities impact on fuel poverty, including: East Lothian Energy Advice Centre (ELEAC); Scottish Government; Citizens Advice Bureaux; fuel companies; Energy Saving Trust; East Lothian Council; and East and Midlothian Community Health Partnerships. There are various threats to the delivery of fuel poverty reductions, including: future increases in fuel costs; factors impacting on incomes levels; Difficulties in resourcing and delivering heating and insulation improvements, particularly in areas remote from the supply of mains gas and in poorly insulated older properties with non-cavity wall construction. Ability of the Council and all involved partners to adequately resource delivery of fuel poverty reduction measures. The actions identified to deliver the Strategies objectives will build upon actions already being delivered by the Council and partner organisations in East Lothian and will help counteract ongoing trends that could result in increased fuel poverty. 5 Due to increases in unemployment and fuel prices since 2002, when the Scottish Government issued its fuel poverty statement, the national target of reducing fuel poverty by 30% by 2006 has been missed. East Lothian Council will monitor progress towards Strategy objectives and will revise approaches in response to changing legislation and funding opportunities. The Council will work closely with the Scottish Government and other relevant partners, to maximise progress towards the aim of eliminating fuel poverty by 2016. 6 1. Introduction 1.1 What is Fuel Poverty Fuel poverty is a term used to describe the inability of households to afford fuel consumption sufficient for domestic purposes, including the maintenance of comfortable heating standards and reasonable use of hot water, lighting and appliances. The causes of fuel poverty are complex, but generally result from a combination of the following: low household income; high levels of essential household expenditure for reasons such as debt and ill health; poor insulation standards; inefficient heating systems; lack of access to cheaper fuels; household behaviour; and under-occupancy of properties. Fuel Poverty can be considered as a sub-set of general income poverty but can also affect households living in hard to heat properties, who would not be considered as falling within standard definitions of income poverty. Fuel Poverty can also be considered in terms of its consequences: Condensation dampness o Low household temperature levels encourage the condensing of moisture onto surfaces within a property, encouraging mould growth. Households making the choice to ‘heat or eat’ 7 o The level of income available to meet fuel costs varies between households and excessive expenditure on fuel can limit resources available for other essential areas of expenditure. Higher rates of cold related illness o Cold conditions impact on certain illnesses, including circulatory and respiratory conditions and there is evidence to indicate that cold conditions hinder recovery from illness. Excess winter mortality o A factor less prevalent in other European Countries with colder climates (excess winter deaths in the UK average around 40,000 per annum). 1.2 Scottish Government Fuel Poverty Statement Legislation with the aim of eradicating fuel poverty came into force in the UK through the Warm Homes and Energy Conservation Act 2000. Eradicating fuel poverty was subsequently set as a priority in the Housing (Scotland) Act 2001, which provided local authorities with a central role in achieving this aim by obligating them to produce Local Housing Strategies which ensure “as far as reasonably practicable, that persons do not live in fuel poverty” (Scottish Government 2001: 88(1)). The Act required Scottish Ministers to publish a statement setting out measures, which they and local authorities are doing and will do to eliminate fuel poverty (Scottish Government 2002). The subsequent Scottish Government ‘Scottish Fuel Poverty Statement’, produced in 2002, reflects the earlier UK Fuel Poverty Strategy and sets a target of eliminating fuel poverty by 2016 and an interim milestone of 30% eradication by 2006. 1.3 Scottish Government Definition of Fuel Poverty Fuel poverty is a fluid problem, with households regularly moving in and out of the situation depending on circumstances and how the problem is defined. Indicators used in the past to illustrate the prevalence of fuel poverty, include levels of fuel debt and disconnection, condensation dampness, cold related 8 illness and excess winter mortality. Various definitions of fuel poverty have been suggested in the past to aid in measuring the extent of the problem. In response to the requirement to eliminate fuel poverty set in the Housing (Scotland) Act 2001, the Scottish Government prepared a definition of fuel poverty for the purposes of its measurement: “A household is in fuel poverty if, in order to maintain a satisfactory heating regime it has to spend more than 10% of its income (including housing benefit or Income Support for Mortgage Interest) on all household fuel use.” 9 2.0 Guidance on Tackling Fuel Poverty and Preparing Fuel Poverty Strategies The Scottish Government have produced guidance for local authorities on factors to be considered in the preparation of Fuel Poverty strategies via the Scottish Government Fuel Poverty Statement1. The Scottish Fuel Poverty Statement indicates how the Scottish Government intends to work with public, private and voluntary organisations to tackle fuel poverty, largely by monitoring and raising awareness of fuel poverty, and promoting energy and heating efficiency improvement. Advice is provided on factors to be addressed by fuel poverty strategies, including: energy efficiency improvement; income maximisation; influencing fuel costs ; benefits advice; energy advice ; and arrangements for monitoring and mapping fuel poverty. The guidance stresses the importance of corporate commitment to the delivery poverty objectives, including the participation of Councillors and the Corporate Management Team. Local authorities are also advised to co-ordinate with relevant external agencies in pursuit of fuel poverty objectives 1 http://www.scotland.gov.uk/Publications/2002/08/15258/9951 10 3.0 Local Strategic Context The Fuel Poverty Strategy will be compliant with a range of local policies, strategies and arrangements made in response to national directives. 3.1 East Lothian Community Plan 2007-2016 The East Lothian Community Plan 2007-2016 confirms East Lothian’s 2020 Vision sets out core priorities and areas to enable the Vision to be met. Community planning is the over-arching framework for moving East Lothian towards the following 2020 vision for the area: “In 2020 East Lothian will have an established reputation as having the highest quality of life in the United Kingdom and the quality of our environment will be recognised as amongst the best in Europe”. Our dynamic and flourishing economy will support strong, sustainable, safe and inclusive communities where: the demand for affordable, high standard housing will be met; our world class education service will encourage all our children and young people to achieve their full potential; and, all our citizens will have access to the highest quality public services and a modern integrated transport infrastructure. In 2020 our citizens will be proud of East Lothian” (2005) The elimination of fuel poverty in East Lothian is a key part of the delivery of this vision. 3.2 Fuel Poverty Strategy and the Single Outcome Agreement Through the Single Outcome Agreement (SOA), the Scottish Government has established 15 National Outcomes that each Council has been encouraged to address. East Lothian Council has produced a response to the SOA which identifies how the Council will address the 15 National Outcomes. 11 The purpose of the SOA is to provide a greater focus on delivering outcomes (i.e. the results for / impacts upon the community). Delivery of those outcomes will be the joint responsibility of the Council and the Scottish Government. The Fuel Poverty Strategy, along with a grouping of other partners and strategies has a significant role to play in addressing these national outcomes. The action plan in Annex 3 identifies how the strategy will address fuel poverty in relation to the SOA. 3.3 East Lothian Local Housing Strategy 2003-2013 The Local Housing Strategy (LHS) is the overarching strategic housing document in East Lothian. It contains direct reference to the development of a Fuel Poverty Strategy in Action 53 of its revised Action Plan 2006. In addition the annual update undertaken for Communities Scotland in 2005 contained a statement on activities in Scotland influencing fuel poverty reduction. 3.4 Home Energy Conservation Act (HECA) The Home Energy Conservation Act (HECA) came in to force on 1 April 1997 and placed a responsibility on local authorities to set and facilitate the delivery of targets for domestic energy efficiency improvement in all tenures in their areas between 1997 and 2007. HECA included arrangements for ensuring that “personal circumstances” were taken in to account in energy efficiency improvement plans, including the needs of vulnerable groups and those in fuel poverty. The Council has produced a HECA Plan in response to the Act, which included the delivery of a number of initiatives, listed below: The East Lothian Energy Advice Centre (ELEAC) o An outreach energy advice service, managed by the Lothian and Edinburgh Energy Efficiency Advice Centre, which advises 12 vulnerable households on fuel payment and energy efficiency issues. Warm and Well o An initiative connected to ELEAC, where health professional refers households whose health is at risk from cold related illness and arranges appropriate assistance. Gas Extension projects o The Council has entered into partnerships with fuel supply organisations, local communities and has facilitated the extension of mains gas supplies to 1,600 households. The most recent progress report of the East Lothian HECA Plan covered the final HECA reporting period up to March 2007. The overall approach of the Strategy has been to encourage energy efficiency improvement and the attainment of affordable warmth. The impact of energy efficiency improvements in East Lothian during the period of the HECA Strategy (April 1997 to March 2007) resulted in a 16.93% improvement by 2007 with the overall target to 2007 being 24.4% from a baseline set at 1 April 1997. Whilst the HECA period drew to a close in March 2007 the installation of measures and provision of advice will continue. However as many properties become fully insulated the focus will shift away from loft and cavity insulation towards alternative methods of providing energy efficiency improvements. 3.5 Scottish Housing Quality Standard Delivery Plan In February 2004 the Minister for Communities announced the Scottish Housing Quality Standard (SHQS) for the social rented sector. The standard defines what constitutes acceptable good quality housing and is consistent with the Scottish Government’s objective of “delivering good quality, warm, sustainable and affordable housing for everyone” (Scottish Government 2004: p.41). Local 13 authorities and Registered Social Landlords (RSLs) have until 2015 to meet the standard, with local authorities being encouraged to monitor progress in the private sector. Local Authorities and RSLs are required to produce a Standard Delivery Plan (SDP) indicating how they will achieve the SHQS. The energy efficient criteria in the SHQS covers inclusion of efficient full house central heating, NHER rating of 5 or SAP of 50 and effective insulation 100mm loft insulation, cavity wall insulation and insulation of hot water pipes. Since 2005 the Council have undertaken a rolling programme of surveys comprising 25% per annum of East Lothian Council’s housing stock. The properties have been assessed against the Scottish Government’s Scottish Housing Quality Standard. At present, the total stock currently comprises 8,089 properties and to date to support the SHQS we have surveyed 75% of our housing stock. The average SAP for the housing stock based on SAP2001 is 68.2, which is higher than the national average of 54. East Lothian Housing Association submitted its Standard Delivery Plan to Communities Scotland in 2006, following completion of a house conditions survey. It is anticipated that the Scottish Housing Quality Standard will be met by 2015. Communities Scotland has confirmed they have no further queries regarding the SDP. In terms of the other major housing associations within East Lothian, most Castle Rock Edinvar and Homes for Life Housing Partnership and other RSL stock, was constructed after the 1980s and is energy efficient. All anticipate that the SHQS will be met by 2015. Local authorities promote the attainment of energy efficiency standards in the private sector through their HECA strategies. Authorities can fund energy efficiency measures, via home improvement grants and have received funding from the Scottish Government for energy efficiency measures via Private Sector 14 Housing Grant. However local authority influence on the private sector is limited, particularly in the private rented sector. 3.6 Debt and Money Advice in East Lothian In January 2003 the East Lothian Money Advice Partnership, consisting of representatives from the CAB, Bridges Project and East Lothian Council, confirmed an overall approach to money advice in the paper “Debt and Money Advice in East Lothian”. This consisted of retaining and enhancing the existing money advice provision via the Haddington and Musselburgh CABx and introducing specialist money advice provision within the Welfare Right Team. The CABx and money advice team co-ordinate with ELC to ensure fuel debts are handled in a holistic manner. 3.7 Healthy Communities and Healthy Citizens: A Joint Health Improvement Plan for East Lothian 2007 - 10 The Plan has been developed by the Health Well Being and Lifelong Learning Forum of the East Lothian Community Planning Partnership to ensure the following: joint working on health improvement across the community planning partners; outline key national and local agendas for health improvement; provide a framework for local delivery of corporate policy across a range of issues related to the wider determinants of health; and Provide a profile of health improvement needs in East Lothian. There is recognition throughout the document in that tackling poverty is key to health improvement. In addition fuel poverty is referenced in the recommendations to ensure that the elderly and the vulnerable elderly, in particular, are targeted for measures to prevent fuel poverty. 15 3.8 Fairer Scotland Fund: Improving Lives, Regenerating Communities 2008-2011 The Scottish Government has created a new fund aimed at tackling poverty and deprivation across Scotland. Entitled the Fairer Scotland Fund (FSF), it brings together seven existing funding streams, each with its own individual monitoring regime and will replace the Regeneration Outcome Agreement 2006-2008. The FSF will continue with its partnership work to contribute to regeneration within Tranent and Prestonpans. The incidence of fuel poverty is one of the measures of progress of the FSF. Fuel poverty is considered to be a cross cutting issue. By tackling fuel poverty, other issues addresses within the FSF, such as housing, health, inequalities and energy can be addressed. Thereby contributing towards the three relevant national outcomes that are detailed below: National Outcome 6 - We live longer, healthier lives; National Outcome 7 - We have tackled the significant inequalities in Scottish society; and National outcome 8 - We have improved the life chances for children, young people and families at risk. Targets for inclusion in the FSF are to reduce the number of households living in fuel poverty in East Lothian by 30% by 2012 (phased annually over the reporting period of the FSF) and implementing the East Lothian Fuel Poverty Strategy alongside the National programmes by 2016. 3.9 East Lothian Homelessness Strategy 2003-2008 The Strategy is currently being reviewed and a new Strategy is being prepared for consultation in 2008. 16 3.10 Older People’s Strategy A joint Council/NHS Older Persons Strategy is in the process of being developed in conjunction with relevant partners. The Strategy is due to be published for consultation in early 2009. The links between fuel poverty and vulnerable older people are highlighted. 3.11 East Lothian Economic Development Strategy This is based on research carried out by the consultancy Yellow Book into the area’s economy and ideas about developing and arranging it in the future. Promoting sustainable development and quality of life is recognised within the Strategy. 17 4.0 Strategy Development 4.1 Preparing the Strategy A Strategy steering group was set up to oversee the development of the Strategy comprising representatives from: East Lothian Tenants and Residents Panel; East Lothian Council, Housing Strategy and Development Section; East Lothian Council, Health Improvement Section; East Lothian Council, Chief Executive Department; East Lothian Primary Care NHS Trust; and Changeworks. This group met on six occasions and considered ongoing arrangements and future actions that could reduce fuel poverty in order to inform the setting of key objectives and actions for delivery of the Strategy. The Strategy has considered the resources required and available to deliver these objectives and actions and has considered barriers to the reduction of fuel poverty. 4.2 Strategy Consultation In June 2007 a consultative draft of the Fuel Poverty Strategy was produced and released to a small group of stakeholders for initial consultation. Prior to the Strategy being issued for wider public consultation and in accordance with Section 9(3) of the Environmental Assessment (Scotland) Act, 2005, East Lothian Council contacted the relevant consultation authorities for guidance on the likely significance of effects of the Strategy on the environment. This was a two month long process and based upon the advice provided by the Scottish Government, East Lothian Council made a determination that there would be no significant environmental effects as a result of the Strategy. In April 2008 the draft Fuel Poverty Strategy was updated following feedback from the initial consultation and changes in information since the document was 18 first produced. It was then published for wider consultation. The steering group met in August 2008 to consider responses from the consultation exercise and agree alterations to the draft document. Appendix 1 contains a full report on the consultation for the Strategy 19 5.0 The Incidence of Fuel Poverty in East Lothian In the period between the 1996 and 2002 Scottish House Condition Surveys, fuel poverty levels in Scotland fell from around 35% to 13% (238,000 households) and in East Lothian the 2002 figure stood at around 11% of the population, or 4,000 households. However, since 2002, the latest data available from the Scottish House Condition Survey 2004/05 indicates that nationally, fuel poverty has increased to 18.2% (419,000 households). The reduction in fuel poverty levels between 1996 and 2002 had occurred as a result of improvements in income and benefit levels, reductions in unemployment, improvements in energy efficiency and reductions in fuel prices. However since 2002 gas prices have risen by around 90% and electric prices by around 60%, far in excess of retail price inflation. An analysis of the Scottish House Condition Survey (SHCS) by Communities Scotland indicated that every 5% increase in fuel costs would result in an increase of 30,000 households experiencing fuel poverty. The fuel poverty charity Energy Action Scotland, estimate that by the end of 2007 the numbers of households in fuel poverty had reached 650,000. If this level of increase applies to East Lothian, then up to 7,500 East Lothian households could have been experiencing fuel poverty by the end of 2007. This is an increase from 11% of all households in East Lothian in 2002 to approximately 20% of all East Lothian households in 2007. The Energy Saving Trust has produced a sub-ward level analysis of fuel poverty, which indicates variations in fuel poverty within the district and is based upon the SHCS data (Appendix 2a). Further mapping has been undertaken by Changeworks in 2006 (Appendix 2b), this analysis was based on 2001 census data on income and presence of central heating. It indicates high levels of fuel poverty in rural areas, which are outside the distribution of Mains Gas and have high proportions of older properties with low insulation levels. The effects of fuel poverty in low-income areas of East Lothian’s main 20 towns are mitigated by the presence of gas central heating connected to social rented properties that are also well insulated. The SHCS 2002 indicated that the best predictors of fuel poverty were income band, tenure and extent of central heating. Households at greater risk included: Tenants of private rented properties; Single adult households; and Those with weekly incomes under £100. The SHCS indicated that approximately 25% of households in receipt of state benefits were fuel poor and 63% of fuel poor households in receipt of benefits received state pension. Of those on incomes between £100 and £199, those in private tenures were more likely to be in fuel poverty (Communities Scotland, 2004). Information on the consequences of fuel poverty in East Lothian such as levels of condensation dampness and excess winter mortality is not regularly available. Numbers of households experiencing problems of condensation dampness in East Lothian were measured in the SHCS as being 11%. The level of excess winter mortality fluctuates from year to year and statistics are not produced at a local authority level. However if Scottish rates are applied to East Lothian then there could be between 50 and 100 excess winter deaths in East Lothian every year. 21 6.0 National Policies and Initiatives There are a range of government policies and initiatives that impact on energy efficiency, income levels and fuel costs and therefore the incidence of fuel poverty. These have been considered in setting the Council’s Strategy. 6.1 Draft Energy Efficiency and Microgeneration Strategy The Housing (Scotland) Act 2006, s 179 requires Scottish Ministers to publish a strategy for improving energy efficiency in living accommodation. This has been undertaken in the form of the draft Energy Efficiency and Microgeneration Strategy for Scotland, which was issued for consultation in March 2007. With regard to housing, the draft strategy highlights that the Scottish Government will: set energy efficiency targets; review the Home Energy Conservation Act targets; consult on proposals to set targets for EcoHomes of ‘excellent’ for new build housing by 2010; consider options for financial and other incentives to encourage householders to improve the energy efficiency of their homes; continue the commitment to end fuel poverty by 2016; and test the impact microgeneration technologies have on tackling fuel poverty. In 2007 Communities Scotland also published a Sustainable Housing Design Guide, which advises on how to improve the energy efficiency of existing buildings and attain affordable warmth. 6.2 Benefits Policies and Winter Fuel Allowance Government measures designed to reduce general poverty by increasing incomes including the introduction of tax and pension credits and the minimum wage, impact on fuel poverty. 22 An initiative directly impacting on fuel poverty is the Winter Fuel Allowance. A Winter Fuel Payment is a tax-free payment for people of 60 or over. It is paid every year over the winter months to help with fuel costs. For the winter of 2008/09, the Winter Fuel Payment is up to £400 per household, depending on circumstances. 6.3 Warm Deal Initiative The Warm Deal initiative was introduced by the Scottish Government in 1999, and has two elements, one for Local Authorities and Registered Social Landlords to carry out insulation works in their own stock and one administered by Scottish Gas covering private rented and owner occupied households over the age of 60 or in receipt of specified benefits. The measures introduced via this scheme include loft, cavity, hot and cold water tank and pipe insulation. The Scottish Gas administered grant is for up to £500 per household and is available to householders on various state benefits. Householders or their spouses over 60 not in receipt of any specified state benefits, qualify for a 25% grant. 6.4 Central Heating Programme The Central Heating Programme was introduced in 2001 and provides central heating, insulation and advice. It is divided between a scheme administered by Scottish Gas and one administered by local authorities and Registered Social Landlords. On 18 October 2008, the Cabinet Secretary announced the allocation of an additional £10 million to the Central Heating Programme. This will allow the programmes to reach a greater number of fuel poor households than were originally anticipated. From 27 October 2008, therefore, the priority groups will be extended to cover the following pensioner households: those who have never had central heating system; 23 those who have a system which is broken beyond repair and are in receipt of the Guaranteed Element of Pension Credit; those who have a system which is broken beyond repair and are aged 75 or over; those who have a partial or inefficient system and are in receipt of the Guarantee Element of Pension Credit; and 6.5 those who have a partial or inefficient system and are aged 80 or over. Energy Assistance Package In November 2008 a new Energy Assistance Package was announced by the Health Secretary to help those affected by fuel poverty. The package will help increase incomes, reduce fuel bills and improve the energy efficiency of homes, offering an integrated package of: energy, benefits, tax credit and tariff checks for a wide range of people; standard insulation measures provided free for those most vulnerable to fuel poverty; and enhanced energy efficiency measures - including central heating renewable heating systems and insulation for hard to treat homes - for low income families living in homes with the lowest energy efficiency. This initiative was the central recommendation of the Scottish Fuel Poverty Forum and will replace the Central Heating and Warm Deal programmes in a drive to tackle all aspects of fuel poverty, not just energy efficiency. It will be backed by £55.8 million a year - 20 per cent more than existing fuel poverty budgets. 6.6 Carbon Emissions Reduction Target (CERT) and Fuel Company Initiatives Fuel companies have to abide by licence conditions, requiring them to identify and assist vulnerable customers, particularly in relation to fuel payment arrangements and to offer energy efficiency advice. Fuel companies also have 24 a major role in financing energy efficiency measures through the Carbon Emissions Reduction Target (CERT) which has succeeded the Energy Efficiency Commitment (EEC), an obligation on energy suppliers to deliver carbon savings through action in homes. CERT will run from 2008 to 2011 and is a licence condition on fuel suppliers to encourage and assist their customers in improving energy efficiency. CERT focuses on disadvantaged customers with 50% of carbon savings arising from customers receiving pensions, benefits or tax credits. CERT is used to fund a variety of measures approved by Ofgem, including loft and cavity wall insulation, condensing boiler installation and installation of renewable energy systems, such as solar panels and heat pumps. The scheme also funds switching from electric and solid fuel heating to gas heating, due to higher system efficiencies of gas heating systems. Another funding source offered by fuel companies has been preferred supplier agreements with social landlords, whereby landlords receive a fee for switching energy supplies of void properties and allocating new property supplies to the fuel company. These fees can be used to fund fuel poverty related activities. Landlords will usually select a supplier based on criteria relating to customer service, competitiveness of tariffs and the level of the fuelswitching fee. 6.7 Energy Saving Trust (EST) Initiatives The Energy Saving Trust was set up by the UK Government, following the 1992 Rio Earth Summit, with the goal of achieving sustainable use of energy and cutting carbon dioxide emissions. A flagship initiative of the EST is The Energy Saving Scotland advice network (ESSac), which is funded by the Scottish Government and managed by the EST. The ESSac provides telephone advice on energy efficiency. Some of the 25 advice centres have separately funded outreach energy advice projects aimed at advising vulnerable households. The EST’s HECAction and Innovation programmes have provided funding on a competitive basis for a range of initiatives aimed at vulnerable households, including private landlord and health initiatives. Three EST initiatives, the Scottish Communities and Householder Renewables Initiative (SCHRI), Innovations Fund and Community Energy Programme, have funded sustainable energy and district heating schemes. 6.8 Building Regulations Part J of the Building (Scotland) Regulations 2004, covering energy efficiency standards in new build properties, stated that by reducing energy consumption in buildings “not only will carbon dioxide emissions be lowered but also fuel poverty issues will be addressed to a certain degree” (Scottish Building Standards Agency 2005: 6.01). The regulations introduced in 2007 require all new gas and oil boiler installations to be specified as high efficiency (usually condensing boilers) and has set minimum energy efficiency standards that will reduce building carbon emissions by around 20% compared to the 2004 regulations. 6.9 Energy Performance Certificates As a result of the European Union Energy Performance in Buildings Directive an Energy Performance Certificate (EPC) will be required for all house sales and lettings from January 2009. 26 6.10 The Planning System In March 2007, the Scottish Government issued Planning Guidance SPP6, which require reductions in carbon emissions of 15% below that required through building regulations in new developments with over 500m2 floor area by installing renewable energy or microgeneration systems. In terms of fuel poverty, cheaper (free) sources of energy will result in lower annual fuel bills. 6.11 New Build Social Housing New build in the social housing sector has generally been provided by Registered Social Landlords with Housing Association Grant (HAG) funding from the Scottish Government. Scottish Government set targets for new build and conversions of SAP ratings of 85-90 and 65-75 retrospectively. There are many examples of renewable energy systems and high-energy efficiency design. However these have tended to serve as demonstration projects and renewable energy systems have rarely been incorporated in new build housing. Energy efficiency in new housing has also been promoted via the EcoHomes initiative, which RSLs are using to set sustainability standards. 27 7.0 Strategic Objectives 7.1 Strategic Objective 1: Identify Level of Fuel Poverty in East Lothian and Measure Progress Towards its Elimination Measurement of fuel poverty levels in East Lothian could serve to demonstrate progress towards the elimination of fuel poverty in the district and possibly impact on future development of the Strategy. Independent measurement of fuel poverty at an East Lothian level would be a complex and costly process. The Council and RSLs are collecting information on the energy efficiency of their housing stock as a result of the requirements of the SHQS and the European Union Energy Performance in Building Directive. However no resources or clear methodology is available to crossreference this with income and fuel demand profile of tenants. The Council will establish a monitoring framework, involving a collection of local indicators of fuel poverty that will be updated annually and analysed by the Fuel Poverty Steering Group. The basis of the monitoring framework will be formed by updates to the Scottish House Condition Survey that measures progress in tackling fuel poverty. Outputs from the various actions included in the Strategy will be used to indicate levels of activity in tackling fuel poverty and incidence of fuel poverty related problems. 28 7.2 Strategic Objective 2: Identify Fuel Poor Households and Direct Them to Appropriate Assistance The Council’s HECA Plan indicated how account would be taken of personal circumstances in tackling fuel poverty. A key aspect of this was the setting up of referral mechanisms between organisations whose work impacts on fuel poverty levels including ELEAC, insulation installers, money advice agencies and other service providers. The ELEAC has carried out mail outs to targeted wards for the purpose of promoting energy efficiency. Respondents to these surveys identified as being at risk of fuel poverty or otherwise vulnerable are directed towards more detailed assistance from ELEAC outreach staff. The ELEAC have carried out training and briefing sessions for partners able to make or receive referrals. Referral mechanisms between agencies participating in the Strategy will be further strengthened. The sub-ward analysis of fuel poverty is useful in informing where and how energy efficiency measures and fuel poverty services should be targeted. In addition to this, existing maps of fuel poverty produced by Changeworks will be updated. These maps are based on census and house condition data and can be populated with information influencing fuel poverty, such as changes in fuel prices, or the delivery of services and measures installed in an area. To support this process, fuel poverty information will be included in ELC information management systems, including GIS. 7.3 Strategic Objective 3: Provide Fuel Poverty Advice and Information Services Provision of energy advice and information is an important component of any Strategy designed to reduce fuel poverty. Energy advice can assist households by providing: 29 information on energy efficiency measures and grant eligibility; support in organising measures and claiming grants; instruction on control and running costs of heating systems and appliances; and information on cost effective fuel payment and budgeting options, including fuel debt repayments and switching suppliers. These actions help ensure that households take steps to obtain value for money on fuel expenditure. Since 1997 the Council has funded Changeworks to deliver the ELEAC service in East Lothian. The service provides a telephone line on energy efficiency matters and has outreach advisors who can visit vulnerable households to discuss fuel bill problems, heating system operation and grant funding for energy efficiency measures. The ELEAC carries out talks and presentations to community groups and schools on energy efficiency and fuel poverty issues, with around 30 presentations being made annually to schools through the Housing Education Partnership and about six to community groups. ELEAC staff also provide training to other service providers on fuel poverty topics and maintain referral networks. This also includes providing feedback to referral organisations on the outcomes of advice work. An offshoot to the energy advice service is the Warm and Well project, which was originally set up with EST funding and assists householders referred by health professionals as being at risk of cold related illness. The project advises these households and facilitates measures by directing clients towards grant assistance and can fund measures from its own intervention fund. The project uses an annual grant from ELC to sustain the intervention fund and has utilised Private Sector Housing Grant, when available, to fund measures. 30 The ELEAC and Warm and Well services assist around 250 households vulnerable to fuel poverty every year. The fuel poverty charity Energy Action Scotland (EAS) has promoted an initiative that recruits volunteers to provide energy advice. The Council and ELEAC would engage with this initiative, if sufficient resources were made available to manage volunteers without detracting from the current delivery of the energy advice service. 7.4 Strategic Objective 4: Provide Benefits and Money/Debt Advice Under claiming of benefits can result in households experiencing fuel poverty. Government statistics indicate a deficit in take up of benefits in the UK. In 2002-2003, between £2,310 and £4,540 million went unclaimed representing a figure of between 76% and 83% of eligible clients taking up benefits they were entitled to. Figures for take up of minimum income guarantee for pensioners (which has since been replaced by Pension Credit) were between 68% and 76%. Take up of Council Tax benefit is also low amongst pensioners (NEA 2005). In addition, spiralling debt problems impact on a household’s ability to pay for fuel, and excess expenditure on fuel can also act as a trigger to households falling into unsustainable debt. In East Lothian the bulk of money and debt advice is provided by the Musselburgh and Haddington Citizens Advice Bureaux (CAB) in conjunction with East Lothian Council’s Welfare Rights section. Arrangements for provision of debt and money advice were described in the Council Plan “Debt and Money Advice in East Lothian” produced in 2003. This document also highlighted that the number of money advisors serving East Lothian was proportionately lower than in other authorities covering similar population profiles. 31 The CAB have a small staff and manage volunteer advisors. The CAB advises on a range of benefit issues and complex debt cases and is licensed to provide debt advice. This also includes advice on fuel debt repayment, which for some households has to be considered alongside other debt payments. The CAB have also commented on fuel payment and debt matters, via their arrangements for commenting on social policy. Money advice services in East Lothian are coping with an increasingly complex financial environment and the Welfare Rights section of the Council and the CABx are working to capacity. There are insufficient resources available to mount sustained initiatives to identify and assist households that are under-claiming benefits or require debt advice. It will therefore be difficult to ensure that rates of under-claiming of benefit are reduced. If changes in the operations of the Department of Work and Pensions impact on the ability of households to claim benefits or result in delays in claims and the appeals process, this could result in failure to remove some households from fuel poverty. Additional resources to deliver money advice services and identify vulnerable households would help to reduce fuel poverty levels. The Council’s Welfare Rights Section has two Welfare Rights advisers and deals with a range of benefit income maximisation. The Welfare Rights section works closely with the CAB and both organisations represent households at benefits tribunals and advise clients on benefit fraud cases. Benefit Entitlement Checks have been incorporated in many fuel poverty programmes, including Warm Deal and some EEC funded schemes. In East Lothian basic benefit checks have been targeted via the Scottish Gas Here to HELP, EEC funded initiative. However income maximisation services provided by Welfare Rights Groups and CABx are more thorough than the checks offered alongside energy efficiency schemes and can assist clients with appeals on benefit decisions. Castle Rock Edinvar Housing Association, have a team, which provides advice to its tenants on benefits issues. They and the CAB and Welfare Rights Team 32 make and receive referrals from the ELEAC, which provides a conduit to wider fuel poverty initiatives. 7.5 Strategic Objective 5: Reduce the Cost of Fuel Since 2002 there have been large increases in the price of fuel, resulting from increased international demand at a time when fossil fuel reserves are becoming more difficult to source and fuel prices in the UK are vulnerable to spikes in demand and the working of the gas supply market in Europe. East Lothian Council has limited input to international fuel price trends, but can influence fuel costs by: encouraging access to mains gas, which is cheaper than other fuel sources; encouraging households to switch to more cost effective payment methods e.g. paying by direct debit rather than more expensive pre-payment meters; encouraging householders to take advantage of competition by switching to cheaper suppliers; and facilitating the installation of renewable and other technologies or initiatives such as bulk purchase of fuel, to reduce the cost of fuel. East Lothian has been actively involved in facilitating the extension of gas to settlements remote from the supply of mains gas. This has involved creating partnerships with gas transportation companies, local communities and private housing developers to demonstrate the financial viability of extending the mains gas network. The Council has made substantial investment in gas connection and heating replacement in its properties located in target areas. Mains gas supplies have been made available to around 1,600 households in all tenures in all tenures since 2001 with further gas connections planned. Rising gas prices may soon nullify the effectiveness of gas as a cheaper source of fuel. However, extending the gas network remains a cornerstone of the 2007 UK Fuel Poverty Strategy (Annual Report 5). This initiative will 33 continue to be a priority for East Lothian Council until reports on its effectiveness to reduce the cost of fuel for households proves otherwise. In line with this, close monitoring of the effectiveness of gas extensions will be undertaken annually through a review of relevant information. The Council’s energy advice service promotes the benefits of changing supplier and arranging cost effective payment methods. The outreach advisors can also guide vulnerable households through the process of switching supplier and changing payment method. This has been supported by the work of the CAB financial education project which has helped vulnerable households without bank accounts secure access to banking services. ELHA and ELC have both entered into preferred fuel supplier agreements, which require all void and new properties to be switched to the participating supplier. Part of the decision on choice of supplier was based on the tariff available from the supplier. Tenants can switch supplier within 28 days of starting tenancy. A new ELHA development at Windygoul, Tranent was opened on December 2007 and was developed in close consultation with East Lothian Council and local resident groups. This development incorporates renewable energy technologies and environmentally sensitive design. A special feature of the development is its use of ground source heat pumps (GSHPs) to provide heating and hot water and as far as we are able to establish this is the largest installation of GSHPs in Scotland. The Scottish Government has provided funding for the renewable energy features on a pilot basis on condition that ELHA, working in partnership with ELC, instruct a detailed independent monitoring exercise to fully evaluate the effectiveness of the sustainable features in order to inform future investment decisions and will be produced by February 2009. There have been few examples of provision of district heating systems and bulk purchasing of fuel in East Lothian. East Lothian Housing Association developed social rented housing in the village of Ormiston, which was heated 34 by a gas-fired district heating system. It is unclear whether this has resulted in significant fuel bill savings for tenants. The Council will examine possibilities of incorporating district heating in large-scale development of new build affordable housing and possibly new build owner occupied housing. This will involve assessment of whether such systems are consistent with objectives relating to reduction of carbon emissions and fuel costs. The Planning advice note on renewable energy SPP6 issued in March 2007 may further stimulate the introduction of district heating. 7.6 Strategic Objective 6: Increase Energy and Fuel Efficiency in all Tenures Since 1997 the Council has been endeavouring to improve energy efficiency levels via a plan prepared in response to its responsibilities under the Home Energy Conservation Act 1995. A target was set to improve energy efficiency in the district by 24.4% between 1997 and 2007. The outcome of the HECA Plan resulted in a 16.93% improvement by 2007. The SHCS indicates that in 2002 the NHER profile (where 0 is poor and 10 is excellent) was: Table 4.1 NHER profile of all East Lothian Housing Stock NHER Rating 0-2 3-6 7-10 Proportion of Properties 13% 60% 35% The Council has been actively improving the energy efficiency of its properties, having completed a programme of double-glazing installation in 2001 and progressing with insulation improvements in line with requirements to improve insulation set under the Scottish Housing Quality Standard. The NHER rating of ELC properties increased from 4.2 in 1997 to 6.2 in 2007. East Lothian Housing Association is also progressing with insulation and glazing replacements in line with its SHQS obligations. There are some non- 35 traditionally constructed RSL properties in non-gas areas in which target SAP ratings will be difficult to achieve. Most non-traditional Council properties have been insulated. Lack of access to mains gas in rural parts of East Lothian has resulted in the presence of heating systems in these areas with lower system efficiencies than gas central heating. There are also high proportions of older buildings in rural areas with low levels of insulation. Improving the energy efficiency of solid walled properties and properties in non-gas areas can be expensive and grant funding for expensive measures is often either unavailable or proportionately low compared to the cost of the measure. Various promotions have been made to private sector households via the HECA Plan. There has been significant uptake of Warm Deal and EEC grant funding in owner occupied housing in East Lothian. Insulation contractors working in ELC properties have promoted uptake of grant funding to neighbouring householders who had purchased their homes under the Right to Buy. Encouraging improvement in the private rented sector will be a challenge as landlords often have little incentive to improve heating and insulation standards in properties. Furthermore private rented properties are often constructed before the 1930s and have solid wall rather than cavity wall construction and are therefore expensive to insulate. The introduction of Energy Performance Certificates in January 2009, which requires landlords to provide prospective tenants with energy ratings for properties, may result in landlords improving the energy efficiency of their properties in an effort to encourage letting and maximisation of rental income. In addition to this, the ELEAC will target private sector landlords with information on the availability of grants for their properties for insulation purposes. The Council has also considered energy efficiency and fuel requirements of utility units used on Gypsy traveller sites and options to improve cost effectiveness. 36 The Council will investigate options for increasing levels of insulation and incorporation of renewable energy features via its new build standard for new Council properties. The outcome of the evaluation of the ELHA Windygoul development will influence the uptake of heat pumps on other housing developments. 37 8.0 Action Plan and Monitoring and Evaluation Responsibility for monitoring and evaluating delivery of the Strategy will rest within the Housing Strategy and Development Unit of ELC Community Housing and Property Management Division. The Strategy will be overseen by the Council’s Development Officer (Sustainability), who also acts as the Council’s HECA officer. Progress will be reported via LHS monitoring arrangements overseen by the Housing Strategy Manager. 8.1 Action Plan The action plan detailed in Appendix 3 was produced in conjunction with partner organisations and is the working document upon which delivery of the Strategy will be focused. The action plan will be updated annually, in conjunction with the Fuel Poverty Strategy steering group. 8.2 Monitoring Framework To monitor progress of the Strategy, the Fuel Poverty Strategy steering group will evaluate progress against actions and review changes in national conditions and policies that will require alteration to the Strategy. Appendix 4 contains the Monitoring and Evaluation task list and is the working document that will inform evaluation of progress towards strategic objectives. The monitoring framework will involve a collection of local indicators of fuel poverty that will be updated annually and analysed by the Fuel Poverty Steering Group. Updates to the Scottish House Condition Survey, that measures progress in tackling fuel poverty, will form the basis of the monitoring framework. Outputs from the various actions included in the Strategy will be used to indicate levels of activity in tackling fuel poverty and incidence of fuel poverty related problems. 38 9.0 Resources Available 9.1 Strategy Management Resources An energy management budget of approximately £90,000 is managed by ELC Housing Strategy and Development Section, which funds HECA and Fuel Poverty Strategy activities. 9.2 Energy Advice and Information Organisations funded via the Energy Management Budget include the ELEAC and Warm and Well projects at £64,400 and £13,000 respectively in the 2008/09 financial year. Around £8,000 per annum will also be spent from the budget on marketing and information activities relating to energy efficiency. Additional resources would be required to meet demand for energy advice and information services. 9.3 Money/Debt Advice The Council proves grant funding to the Haddington and Musselburgh Citizens Advice Bureaux totalling £186,800 in the 2008/09 financial year. This will contribute to running costs of the Bureaux and staff costs. This sum also includes additional money made available by the Scottish Government for the provision of money advice. These funds were agreed for use for the funding of the Welfare Rights Team. 9.4 RSL and East Lothian Council Stock, Heating and Energy Efficiency Improvements The Council and RSLs will deliver energy efficiency improvements to their stock in line with the Scottish Housing Quality Standard (SHQS). Capital programme expenditure will result in continued improvement in insulation 39 standards, although decisions on the feasibility of improvement of stock requiring expensive or technically difficult measures may have to be taken. The Council and RSLs receive Warm Deal funding from the Scottish Government. East Lothian Council use approximately £250,000 of this funding in 2006-2008 to support insulation works in its properties. Energy Efficiency Commitment funding estimated to be in the region of £600,000, will be spent in Council properties during this period, with additional funding being available to RSL and private sector households. The Council may also access Fuel Company and EST funding to support innovative energy efficiency and renewable heating schemes in existing and new stock and will work with local RSLs to identify funding opportunities. 9.5 Private Sector Housing Energy Efficiency and Heating Improvements Resources for improvements in vulnerable private sector households will come from a number of sources including government grant initiatives, such as the Scottish Government Central Heating Programme and Warm Deal and Fuel Company Carbon Energy Reduction Target (CERT) funding. 9.6 Training Training will be delivered by ELEAC staff for the purposes of maintaining referral arrangements and increasing awareness of fuel poverty amongst service providers. Staff resources will be met from the existing ELEAC budget with production of information materials being funded from the Council’s energy management budget. 40 10.0 Risk A number of factors could affect progress towards the objective of eliminating fuel poverty. These are discussed below and focus on the main causes of fuel poverty: high fuel costs; household income; and energy efficiency. These three factors are explored in more detail below and the accompanying appendix 5 is the risk register to supplement this text. 10.1 Fuel costs Recent fuel price and unemployment increases have countered other measures and factors that encourage reductions in fuel poverty. By 2016 – the target date in the Housing (Scotland) Act 2001 factors could come into play that would result in higher fuel costs. These could include: increasing international competition for fossil fuels; the costs involved in updating the Country’s energy supply infrastructure, including the building of new power stations with low carbon emissions; and Decommissioning costs for retired power stations and nuclear waste disposal costs may also impact on household fuel costs. 10.2 Income Factors affecting the health of the economy (including fuel supply) could impact on household incomes and levels of unemployment and as a result increase fuel poverty, some of these include: 41 recession, the current economic uncertainty; National benefit policies are unlikely in isolation to result in the reduction of fuel poverty risk for long-term unemployed single and two person households, those most affected by fuel poverty. Government initiatives to encourage incapacity benefit recipients in to work and a higher standard of living are being achieved by cutting the benefits of some recipients. If the affected claimants are not encouraged successfully into employment, this measure could have the affect of increase fuel poverty. Changes to funding for pension schemes, may risk future increases in fuel poverty. 10.3 Energy Efficiency Criticisms have been made of the effectiveness of energy efficiency programmes in reducing fuel poverty. For example there is no prioritisation of households via the EEC and Warm Deal and central heating initiatives based on measured risk of fuel poverty. This could result in fuel poor households living in hard to treat properties being left without support to carry out the expensive measures required to remove them from fuel poverty, such as installation of renewable energy heating systems, solid wall insulation and the extension of mains gas supply. In addition to this there will be technical difficulties in improving the energy efficiency of some older stone-built properties, which are unlikely to be replaced as a result of their architectural merits. This could impact on continued fuel poverty risk for residents of these properties. 42 10.4 Strategy Management and Financing The level of staff and financial resources dedicated by the Council and partner organisations to the management and monitoring and evaluation of the Strategy could affect its delivery and efforts to reduce fuel poverty. The Council funded ELEAC energy advice service is working to capacity and due to successful referral arrangements is supporting an increasingly vulnerable client group, requiring in depth support. This prevents increased effort to identify and support additional fuel poor households requiring support to improve their energy efficiency and ensure that they are paying the appropriate amount for fuel. The project would require additional financial and staff resources to meet energy advice and information requirements in the district. The reliance on SHCS survey information to indicate fuel poverty levels in East Lothian and possible difficulties in collecting appropriate indicators could affect the responsiveness of the Strategy to changing circumstances. 43 11.0 Conclusion East Lothian Council and partner organisations have been engaged for a significant period of time in activities that impact on fuel poverty. These activities range from economic development to provision of fuel and money advice services and energy efficiency improvement. There are many factors affecting fuel poverty over which the Council has limited influence, such as fuel prices and national incomes and benefits policy. However the Strategy identifies clear action to address those areas over which the Council does have influence. The Council will monitor progress towards Strategy objectives and will revise approaches in response to changing legislation and funding opportunities and will liaise closely with the Scottish Government to maximise progress towards the achievement of its aim of eliminating fuel poverty by 2016. 44 APPENDIX 1 REPORT ON CONSULTATION FOR THE DRAFT EAST LOTHIAN FUEL POVERTY STRATEGY 45 CONSULTATION PERIOD: MAY 15TH - 1ST AUGUST ACKNOWLEDGEMENTS East Lothian Council would like to thank all those who took the time to participate in the consultation. FURTHER INFORMATION If you would like to discuss any aspects of the fuel poverty strategy please call Alastair Ranyard on 01875824017, or write to him at Housing Strategy and Development Services, East Lothian Council, Penston house, Macmerry Industrial Estate, Macmerry, EH33 1EX or email [email protected] If you need advice on cutting fuel costs and/or fuel payment problems, this is available free from the East Lothian Energy Efficiency Advice Centre on 0800 512 012. 1 CONSULTATION PROCESS 1.1 Background 1.2 Consultative Draft 1.3 Strategic Environmental Assessment 1.4 Fuel Poverty Strategy – Wider Public Consultation 1.5 East Lothian Tenants and Residents Panel 2 CONSULTATION RESPONSES 2.1 Response Summary 2.2 Respondent List 3 THE WAY FORWARD – FINALISING THE STRATEGY 46 1 CONSULTATION PROCESS 1.1 Background East Lothian Council submitted its Local Housing Strategy to Communities Scotland in 2003. The Local Housing Strategy included an action to develop and implement a Fuel Poverty Strategy. In January 2007 a steering group was established to produce a Fuel Poverty Strategy consisting of representatives from the following organisations: East Lothian Council (Housing Strategy and Development); East Lothian Council (Welfare Benefits); East Lothian Council (Corporate Policy); East Lothian Council (Health Improvement); East Lothian Tenants and Residents Panel Changeworks; and East Lothian Community Health Partnership. In January 2007, the steering group conducted an options appraisal on proposed actions for the Fuel Poverty Strategy. A wide range of people were given the opportunity to give their views on the options at the East Lothian Housing Forum, which is a regular event that allows stakeholders across East Lothian to comment on housing related issues. The focus of this housing forum was on the East Lothian Fuel Poverty Strategy and attendees were given the opportunity to make comment on the objectives for the Strategy prior to the issue of a consultative draft. Following this, the below options were established as the seven set strategic objectives for the strategy: 1.2 Strategic Objective 1: Identify level of fuel poverty in East Lothian and measure progress towards its elimination; Strategic Objective 2: Identify fuel poor households and direct them to appropriate assistance; Strategic Objective 3: Provide fuel poverty advice and information services; Strategic Objective 4: Provide benefits and money/debt advice; Strategic Objective 5: Reduce the cost of heating fuel; Strategic Objective 6: Increase energy and fuel efficiency in all tenures; and Strategic Objective 7: Reduce under-occupancy of properties. Consultative Draft In June 2007, following the Housing Forum a consultative draft of the Fuel Poverty Strategy was produced and released to a small group of stakeholders for initial consultation. 47 1.3 Strategic Environmental Assessment Prior to the Strategy being issued for wider public consultation and in accordance with Section 9(3) of the Environmental Assessment (Scotland) Act, 2005, East Lothian Council contacted the relevant consultation authorities for guidance on the likely significance of effects of the Strategy on the environment. This was a two month long process and based upon the advice provided by the Scottish Government, East Lothian Council made a determination that there would be no significant environmental effects as a result of the Strategy. Fuel Poverty Strategy – Wider Public Consultation 1.4 In April 2008 the draft Fuel Poverty Strategy was updated following feedback from the initial consultation and changes in information since the document was first produced. A Fuel Poverty Strategy web page was set up on East Lothian Council’s website for the consultation. The webpage contains a brief summary of some of the issues surrounding fuel poverty and also housed the draft Strategy document, accompanying letter and questionnaire. Letters and emails were sent to around 200 people in East Lothian and neighbouring districts to those with an interest in fuel poverty. The letter invited people to visit the Fuel Poverty Strategy web page, to download copies of the Strategy. Alternative provision was made for hard copies to be distributed if necessary. In addition, posters were distributed to libraries, housing offices and other public buildings across East Lothian, inviting members of the public to participate in the consultation for the Strategy. Articles were also included in the local press, as well as Homefront – East Lothian Council’s magazine for housing staff and tenants. 1.5 East Lothian Tenants and Residents Panel - Information Evening Alastair Ranyard, Development Officer, and Esther Wilson, Housing Strategy and Development Manager, attended East Lothian Tenants and Residents Panel’s (ELTRP) information evening to discuss the Strategy. This was a two hour session, split into presentation and workshop. To begin with, a presentation was made covering the following points: requirement to prepare a fuel poverty strategy; definition of fuel poverty; causes, consequences and incidence of fuel poverty; scottish Government Guidance on fuel poverty; likely distribution of fuel poverty in East Lothian; challenges to reducing fuel poverty; initiatives impacting on fuel poverty in East Lothian; and 48 proposed strategic objectives for East Lothian’s Fuel Poverty Strategy and the key issues related to them. A workshop was then held for the whole group, focusing on the actions relating to all seven specific strategic objectives (as detailed above). Feedback from the evening will be used to prepare the finalised East Lothian Fuel Poverty Strategy. 2 CONSULTATION RESPONSES 2.1 Response Summary To summarise the consultation responses in brief, all respondents were satisfied that the direction the Strategy is taking is the right one, as all replied positively that the strategic objectives chosen were correct. However the results showed that more respondents felt that more could be done to reduce the cost of fuel and a higher provision of energy advice could also be provided, along with more accurate measuring of the incidence of fuel poverty. 2.2 Respondent List Excluding the 15 people at the ELTRP meeting a total of nine people responded to the Consultation. Respondent Nicky Sanford Organisation ELC Housing Strategy Rebecca Spillane ELC Equalities Officer Angela Kenney ELC Policy Officer Anne Hastie Haddington Citizens Advice Bureau ELC Policy Officer Jaqueline Leslie Grace Jamieson Les Brown ELC Research Officer (Economic Development Division) Housing Officer (Fuel Poverty) Fife Council Eileen Wilson Member of Public Shonah Cargill Changeworks, Project Officer 49 3 The Way Forward – Finalising the Strategy The Fuel Poverty Strategy Steering Group was reconvened to discuss all responses that were submitted to the consultation. In addition, the action plan was revised to focus upon deliverable outcomes. Where the actions could not currently be resourced they were not included in the action plan. They were however be included in the text of the strategy as examples of additional work that could be undertaken if resources were made available. 50 APPENDIX 2 Fuel Poverty Maps 51 2a Fuel Poverty Map – Energy Savings Trust 52 2b Fuel Poverty Map – Produced by Changeworks Key - Incidence of Fuel Poverty Very High High Medium Low Very Low 53 Appendix 3 East Lothian Council Fuel Poverty Strategy Action Plan 55 Appendix 3 East Lothian Council Fuel Poverty Strategy 2008 - 2016: Action Plan The strategic links between the Fuel Poverty Strategy and the Single Outcome Agreement are identified in the Fuel Poverty Action Plan, as discussed in section 3.2 above. The Outcomes are identified in the table below in blue and description of the Outcomes are as follows: No. 1 We live in a Scotland that is the most attractive place for doing business in Europe No. 2 We realise our full economic potential with more and better employment opportunities for our people No. 6 We live longer, healthier lives. No. 7 We have tackled the significant inequalities in Scottish society, No. 8 We have improved the life chances for children, young people and families at risk, No. 10 We live in well-designed, sustainable places where we are able to access the amenities and services we need No. 12 We value and enjoy our built and natural environment and protect it and enhance it for future Generations Action Output Timescale Priority Lead Partner(s) Resource Objective 1: Identify level of Fuel Poverty in East Lothian and Measure Progress Towards its Elimination 1. Establish monitoring framework and report annually on the progress of the Strategy An annual appraisal of the Fuel Poverty Strategy using a range of recognised measures. Leading to improved understanding of fuel poverty in East Lothian. June 2009 High East Lothian Council East Lothian Council Scottish Government (Produce evidence / stats) Collection of indicators influenced by fuel poverty to measure the success of Fuel Poverty initiatives and the Strategy as a whole. (6,7,8) 56 Action Output Timescale Priority Lead Partner(s) Objective 2: Identify Fuel Poor Households and Direct Them to Appropriate Assistance Resource Establish a programme 2. of ward mailing, identifying a mechanism(s) for targeting the worst affected areas in terms of fuel poverty. Fuel poor households in target areas identified and information/advice offered (6,8) ELC EST ELEAC 3. Use Energy Saving Trust fuel poverty map and 2001 Census information to indicate levels of fuel poverty in different geographical areas. Record of influence of fuel poverty map on delivery of services and measures 4. Establish a training programme for staff from a number of different professions who can identify and advise upon fuel poverty issues. 2008 and Annually High ELC East Lothian Energy Advice Centre C £ 5,000 pa 2008 and Annually High Inclusion of information on targeting of measures and services in strategy updates ELC ELEAC June 2008ongoing High ELC/ Changeworks ELC/ Changeworks resources Inclusion of fuel poverty information in ELC management systems, including GIS Comparison of fuel poverty map with SIMD (6,7,8) A wide range of professions are aware of fuel poverty issues and the objectives of the fuel poverty strategy and are able to inform and make referrals for more comprehensive advice. (6,8) 57 Action Completio Outcome n Date Objective 3: Provide Fuel Poverty Advice and Information Services Priority 5. Include information and contacts on fuel poverty and energy advice in ELC Tenants Handbook and other ELC communications to tenants. January 2009 Medium 6. Provide information and advice on appliance running costs. 2009 7. Identify the requirements for energy advice to be made available in a range of formats, in line with equal opportunities. Problems of fuel poverty prevented Lead Partner(s) ELC/ ELEAC Vulnerable households made aware of assistance. (6,8) January 2008 Householders made aware of the running costs of their appliances (6,8) Key information on fuel poverty and relevant services (6,7,8) Resource Staff time (ELC ELEAC) Printing and production costs Low Medium ELC RSLs Changeworks ELEAC ELC ELEEAC Other Partners ncluding: grant providers, fuel companies heating and insulation installers money advice providers Staff resources for dissemination and updating of information Production costs of handouts Staff Time Existing resources of service providers Information resource production costs Low 8. Produce web information June 2009 Information on range of fuel poverty strategy activities available to the public and potential partners (6,7,8) ELC ELEEAC Staff time Possible expenditure related to production of a website 58 Action By Outcome Objective 4: Provide Benefits and Money/Debt Advice Priority Lead Partner(s) Resource 9. Prepare and implement a programme of energy advice workshops in conjunction with money / debt advice providers High ELC ELEEAC CAB Staff time Cost of any required information materials June 2008 Appropriate referral arrangements put in place, which are responsive to changing requirements and resources available. (6,8) Action By Output Objective 5. Reduce the Cost of Heating Fuel Priority Lead Partner(s) Resource 10. Identify a range of measures and technologies for both new build and existing housing that will help to reduce the cost of heating fuel. Low ELC RSLs Private Developers Staff Resources 11. Extend the gas mains network and annually monitor the effectiveness of June 2009 Information gathered on a range of measures and technologies. Assessment made of benefits (including costs) of installing a range of measures to include: Possible Associated Planned Investment in new units ELC Staff Resources District heating schemes Bulk purchase of fuel (1,7,8) Cost effective fuel supplies made available to more households (7,8) High ELC Fuel Companies BG Transco Home owners RSLs Staff Resources Capital programme resources for gas connection to individual properties and heating replacement. 59 Action By Output Objective 5. Reduce the Cost of Heating Fuel this programme to reduce fuel bills 12. Promote the benefits of changing to cheaper suppliers. Decem ber 2007ongoing Low income households advised of process to switch suppliers and advisory support to do this. (6,8) Priority Lead Partner(s) Resource High ELC RSLs ELEEAC Staff Resources Production of printed information Action By Output Priority Objective 6: Increase Energy and Fuel Efficiency in All Tenures Lead Partner(s) Resource 13. Increase energy efficiency of Council and Registered Social Landlord Stock. ELC Staff Time Capital Programme resources External grant funding 2016 Energy ratings of properties brought up to NHER 7, suggested as a level that would minimise risk of fuel poverty. (1,10) High RSLs Fuel companies EST Scottish Government 14. Consider opportunities for promoting energy and fuel efficiency to the private sector 2010 Promotion Strategy for the Private Sector (10,12) Medium ELC ELEAC Private Landlords Staff time (ELEEAC and ELC) 60 Action By Output Priority Objective 6: Increase Energy and Fuel Efficiency in All Tenures Lead Partner(s) Resource ELC funding for marketing energy efficiency and support of ELEEAC 15 Evaluate sustainable energy features at Windygoul, Tranent, development and investigate use of renewables for new build housing developments June 2009 Practice established by RSLs and Council for incorporating renewable energy systems and maximising energy efficiency in new build properties (10,12) High ELC ELEEAC RSLs Approx £70K Windygoul Research ELC/ ELHA £7,000 Plus Staff Time 61 APPENDIX 4 MONITORING AND EVALUATION FRAMEWORK 63 East Lothian Council Fuel Poverty Strategy 2008-2016: Monitoring and Evaluation Framework An annual appraisal of the Fuel Poverty Strategy will be undertaken using a range of recognised measures, leading to improved understanding of fuel poverty in East Lothian. This document contains the plan to establish the monitoring and evaluation framework and provides further detail on the measurements and indicators required. Initiative Baseline Key Milestones Outputs Outcome By Objective 1: Identify level of Fuel Poverty in East Lothian and Measure Progress Towards its Elimination SHQS used as a measure of Fuel Poverty and used annually in progress updates. Annually Update Fuel Poverty Indicators Data produced on a biennial basis, in line with SHQS Some data collected, however, identification and coordination of data collection required. Baseline indicated in 2002 SHCS Updated measurement of East Lothian fuel poverty level in SHCS SHQS data included in annual reporting / monitoring document Nationally recognised measurement of fuel poverty used to chart progress towards elimination of fuel poverty and resulting in possible amendments to strategy October 2009 and annually thereafter Assessment of indicators relating to objectives in initial strategy Establish indicators with ELEEAC and Money advice agencies Systems of reporting indicators put in place by June 2009 Use of indicators in first update to the fuel poverty strategy Relevant indicators identified and included in annual monitoring / reporting document Factors affecting fuel poverty described and used in strategy updates October 2009 and annually thereafter 64 Initiative Baseline Key Milestones Evidence Outputs Objective 2: Identify Fuel Poor Households and Direct Them to Appropriate Assistance Outcome By Monitor targeted ward mailings Mailings have been undertaken, but not on a ward basis. Annual mail outs to target settlements or post code areas Record of areas targeted and mail outs carried out Numbers of returns and profile of householders contacted Fuel poor households in target areas identified and information/advice offered January 2009 and annually until 2016 Fuel Poverty maps produced annually Inclusion of information on targeting of measures and services in strategy updates Decisions made on how services and energy saving works will be targeted 2008 Monitor response rates in relation to demand Use Energy Saving Trust fuel poverty map and 2001 Census information to indicate levels of fuel poverty in different geographical areas. Maps established from 2001 census data. Required to be updated in line with more recent data on income and fuel prices Record influence of fuel poverty map on delivery of services and measures Inclusion of fuel poverty information in ELC management systems, including GIS Comparison of fuel poverty map with SIMD 65 Initiative Baseline Key Milestones Evidence Outputs Objective 2: Identify Fuel Poor Households and Direct Them to Appropriate Assistance Outcome By Monitor numbers of referrals made between partners to the ELEAC for energy advice. Referral mechanisms have been set up Numbers of referral agencies identified. A programme established Cross referral of clients to agencies able to reduce fuel poverty problems established Ongoing More systematic monitoring of referrals is required. Complete a number of identified presentations made by ELEAC to referral groups Monitor the training programme for Council and other agencies to make referrals for fuel poverty and energy advice. Training programme is in place – however a more systematic programme and monitoring framework is required. Briefing sessions carried out by ELEAC to relevant departments / organisations Council sections aware of fuel poverty issues and the objectives of the fuel poverty strategy. June 2008ongoing Identification of any detailed training requirements by June 2009-ongoing Programme of updated meetings with referral agencies carried out by ELEAC ELEAC to monitor numbers of referrals. Record of training sessions delivered Number and type of referrals made by staff in referral agencies Inclusion of referral partners in ELEEAC progress reports Record of meetings between ELEEAC and strategy partners Number of training sessions on referral mechanisms Number of referrals made by agencies Prioritisation of which staff to target 66 Initiative Baseline Key Milestones Evidence Outputs Outcome Objective 3: Provide Fuel Poverty Advice and Information Services Monitor effectiveness of energy advice service in conjunction with East Lothian Energy Advice Centre Monitor performance of Warm and Well service Energy advice outreach service established and monitoring of progress in place. Warm and Well service established and monitoring of progress in place. 200 vulnerable households advised by the service per annum ELEEAC Progress reports and case records Number of households assisted Households with serious fuel poverty problems identified and assisted Already in place Record of enquiry types Assist 40 households referred by health professionals per annum Include service as part of hospital discharge process Assess resources required to meet demand from wide range of health professionals and day care services Indications of workload and unmet demand presented by ELEAC Record of promotional activities by ELEAC Warm and Well progress reports Numbers of households assisted Record of measures delivered and other advice outcomes Resources identified to expand service Utilise annual funding to install and facilitate installation of heating and energy efficiency measures Ongoing Assessment of demand and resources required to meet demand 67 Initiative Baseline Key Milestones Evidence Outputs Outcome Objective 3: Provide Fuel Poverty Advice and Information Services Monitor provision of presentations to community groups on fuel poverty issues. Presentations established and monitoring in place Assessment of which community groups should be targeted and ELEEAC resources required Record of presentations carried out Record of updates of strategy materials Outcomes of presentations Numbers of households referred for energy and Information on fuel poverty disseminated to vulnerable households and households in need of assistance identified Ongoing Prevention of fuel poverty problems experienced by school leavers. Ongoing money advice Six presentations per annum Provide talks to school groups in conjunction with Housing Education Partnership Talks and monitoring in place. Carry out 24 presentations to secondary school groups per annum Students produce leaflet on fuel poverty as part of schools project Record of schools presentations carried out. Schools fuel poverty leaflet prepared. Numbers of presentations carried out. Numbers of students attending presentations Increased awareness of fuel poverty amongst emerging households. 68 Initiative Baseline Key Milestones Evidence Objective 4: Provide Benefits and Money/Debt Advice Outputs Outcome By Link benefits advice to all fuel poverty and energy efficiency initiatives Number of referrals made by various organisations delivering fuel poverty services for money advice Appropriate referral arrangements put in place, which are responsive to changing requirements and resources available. June 2008 Benefits advice linked, systematic monitoring of advice required. Regular contact established via the ELEAC to ensure referral arrangements are updated Mechanisms in place to refer recipients of energy efficiency measures and energy advice for benefits advice. Record of which agencies delivered money advice referred by these organisations 69 Initiative Baseline Key Milestones Objective 5. Reduce the Cost of Heating Fuel Evidence Outputs Outcome By Monitor the effectiveness of extending the mains gas network to off-gas areas Programme in place – no measurement of its effectiveness in place. Gas extension programme established. Record of discussions with partners on arrangements to extend the mains gas network and extensions delivered Number of households connected to the mains gas network Expenditure of partners on mains gas extensions Cost effective fuel supplies made available to more households Ongoing Monitor the effectiveness of preferred supplier arrangements between landlords and fuel utilities, providing cheaper tariffs. Preferred Supplier arrangement s in place – monitoring of effectivenes s required. Establish benefits of this practice for social landlords in East Lothian- Preferred supplier arrangement in place. Income generated from preferred supplier arrangements Cheaper tariffs made available to tenants in social rented properties and encouraged to take advantage of fuel tariff competition. October 2009 Encourage landlords to implement if necessary Record of value for money assessment for tenants Numbers of preferred supplier agreements in place 70 Indicator Baseline Key Milestones Evidence Objective 6: Increase Energy and Fuel Efficiency in All Tenures Outputs Outcome Assess Council and Registered Social Landlord stock condition survey information Standard Delivery Plan information on energy efficiency measures required and energy rating standards achieved Programmes in place for energy efficiency improvement and demolition Properties requiring energy efficiency and heating improvements identified. Ongoing HECA reporting and funding claims Numbers of cavity wall and loft insulations remaining to be carried out. Energy ratings of properties brought up to NHER 7, suggested as a level that would minimise risk of fuel poverty. 2016 HECA reporting captures this information and is update biannually Assess information on energy and heating efficiency of stock in conjunction with reporting responsibilities under the Home Energy Conservation Act By G g Update in conjunction with SHQS objectives Monitor programme to increase energy efficiency of Council and Registered Social Landlord Stock HECA reporting captures this information and is update biannually Prioritise works based on decision on levels of need and cost effectiveness Insulate all cavity walls and lofts to current standards by June 2009 in line with SHQS purposes Assess requirements for insulating solid walls June 2009 Investigate sources of external fundingOngoing Numbers of hard to treat properties tackled with measures such as external wall insulation Installations of renewable energy systems required to raise hard to treat properties to a standard that would prevent fuel poverty Decisions to demolish properties where improvement would not be cost effective 71 Indicator Baseline Key Milestones Evidence Objective 6: Increase Energy and Fuel Efficiency in All Tenures Outputs Outcome Evaluate sustainable energy features for new build housing developments Assessments of applicability of measures Practice established by RSLs and Council for incorporating renewable energy systems and maximising energy efficiency in new build properties Disseminate results of Windygoul Ground Source Heat Pump monitoring June 2009 Consider means of evaluation installation of other technologies, including community Evalution report for Windygoul Asessment of available grant funding for renewable energy heating systems and their application to affordable housing via the Council’s Newbuild standards Numbers of renewable energy systems installed By June 2009 72 APPENDIX 5 RISK REGISTER 74 APPENDIX 5 RISK REGISTER Risk to the achievement of fuel poverty reductions and mitigating action Risk Probability Severity Rising Fuel Costs (Including): High High Ability of Council to Influence Low Mitigating Action -increased international competition for fossil fuels - Costs involved in updating the Country’s energy supply infrastructure Promote benefits of Preferred Supplier arrangements between landlords and fuel utilities providing cheaper tariffs – Action 12 Investigate technologies and initiatives for new build housing developments and retro-fitting – Action 10 Extend mains gas network and monitor the effectiveness of gas extension in reducing fuel bills - Action 11 Promote the benefits of changing to cheaper suppliers – Action 12 - Decommissioning costs for retired power stations and nuclear waste disposal costs 75 Risk Probability Severity Income Low High Ability of Council to Influence Low - Factors affecting the health of the economy (including fuel supply) could impact on household incomes and levels of unemployment Energy Efficiency Mitigating Action Medium Medium Provide benefits advice and follow on appeals support and identify most appropriate funds Link benefits advice to all fuel poverty and energy efficiency initiatives Action 9 Economic development activity Low Lobby Government to widen / better target eligibility criteria for grant funding B) Expense of improving hard to treat properties Energy Efficiency Increase energy efficiency of Council and Registered Social Landlord stock Maximise available grant funding for insulation and other measures Action 10 C) Availability of energy advice and information The effectiveness of energy efficiency programmes in reducing fuel poverty A) Eligibility of fuel poor households for grants Provide outreach advice service in conjunction with East Lothian Energy Advice Centre Establish a programme of mailing to target the worst affected areas in terms of fuel poverty. Action 2 All actions under Objectives 2 and 3 of the Action Plan 76 Risk Probability Severity Ability of Council to Influence Mitigating Action D) Resourcing of measures in private sector households Strategy Management and Financing Lack of staff available to drive process and monitor strategy Lack of resources to fund initiatives Medium Medium Medium Medium Medium Medium Consider opportunities for promoting energy and fuel efficiency to private sector landlords, including the setting up of accreditation schemes and promotion of initiatives Action 14 Identify sources of funding for energy efficiency interventions private sector households Action 14 Promote energy efficiency measures in owner occupied sector. Action 14 Identify resources within the Council and externally to deliver strategy. Develop partnerships to assist management of the strategy Implement process for obtaining and recording data on progress – Objective 1 Raise awareness of the importance of Fuel Poverty Initiatives at the local and national level. Maximise existing grants - Actions 14, and Objectives 2, 3 and 4 Raise awareness of the importance of Fuel Poverty Initiatives at the local and national level. 77 Glossary and Terms and Abbreviations Affordable Warmth The concept of provision of space heating and hot water at an affordable cost to households on low income. Cavity Wall A wall construction with an air gap between inner and outer layers of the wall. Condensing Boiler A high efficiency gas or oil fuelled boiler, which recovers heat from flue gases. EAGA Ltd The Energy Action Grants Agency- organisation responsible for administering Warm Deal and Network Installers. CERT Carbon Emissions Reduction Target - Energy efficiency scheme funded via a levy on electricity and gas customers ELEAC East Lothian Energy Advice Centre - Locally branded energy advice service run by Changeworks and funded by East Lothian Council. Energy Rating Measure of a property’s energy efficiency, based on a set scale, i.e. 1-100 SAP rating and 0-10 NHER Rating. EST Energy Saving Trust- government funded body which monitors the energy advice centre network and EEC spending. 78 Fuel Poverty A situation where households are unable to afford to purchase sufficient energy for their needs. HECAction An initiative run by the EST, which offers grant funding to set up sustainable energy efficiency schemes Network Installers Organisations franchised to deliver energy efficiency measures in designated areas under Warm Deal. NHER National Home Energy Rating Schemecommercial energy rating scheme relating to a dwellings construction and the effect of standard occupancy on lighting and appliance use. Non-traditional Construction Usually regarded as properties built using prefabricated building elements (such as steel concrete) between the 1940s and 1970s and using wall designs that are expensive to insulate TWh One thousand million kilowatt hours, equivalent to one thousand million one bar fires used for one hour Warm Deal Energy efficiency initiative administered by EAGA Ltd and the Scottish Government. Warm & Well A HECAction initiative operating in East Lothian, which facilitates heating and energy efficiency measures for households referred by health professionals. 79
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