TOPIC SHEET AFFORDABLE WARMTH Purpose With the rising cost of energy, many rural households are struggling to keep their homes warm in winter. This extra resource provides information about how your community can address affordable heating and energy efficiency when producing a Community Led Plan. What’s involved Understanding the significance of affordable warmth to your community and working with others to develop actions, access resources and deliver warmer homes in your area. What is affordable warmth? Fuel poverty is a Government term to describe households that spend more than 10% of their income on heating. With the rising cost of energy, more and more people struggle to afford heating costs. Living in cold homes impacts on people’s physical and mental wellbeing damaging people’s health and affecting their quality of life. The elderly, children, and those with a disability or long-term illness are especially vulnerable. There are three main causes of fuel poverty: • • • poor energy efficiency in the home high energy prices low household income. It is estimated that there were 5.1 million households in the UK and 4 million in England in fuel poverty in 2010. This is about 20% of all English households. High fuel prices and cold winters are exacerbating the problem. It is estimated that for every 1% increase in fuel prices another 40,000 households enter fuel poverty. Improving the energy efficiency of a home can deliver affordable warmth to a household. Houses are warmer, fuel bills are reduced and carbon emissions are lower, which helps tackle climate change. Government Definition of Fuel Poverty A household is defined as being in fuel poverty when 10% or more of household income is spent to achieve a satisfactory heating regime (21°C in the living room and 18°C in the rest of the house). It is calculated using the income of households, the cost of fuel for heating, and the ability of the home to retain heat. Communicating Affordable Warmth When developing local actions, steer away from using the national terminology of ‘fuel poverty’ and develop more positive and empowering statements such as affordable warmth, warm homes or warm zones to encourage participation and avoid stigma. Communicating the wider community and economic benefits is also important, including: saving money, reducing fuel bills, improving health and reducing carbon emissions. Community Led Planning Toolkit © ACRE and RCAN 2006-2012 TOPIC SHEET - AFFORDABLE WARMTH Affordable warmth is the ability to heat a home to an adequate level for household comfort and health without developing a debt as a result. The lack of affordable warmth is known as fuel poverty. TOPIC SHEET AFFORDABLE WARMTH Why is rural affordable warmth important? Rural households are twice as likely as urban households to struggle to afford to heat their homes. National Energy Action (NEA)1 estimates that the number of rural households having difficulties heating their homes reached 1.1 million in 2010 - that means more than one in four rural households are struggling to keep their homes warm. The impact of this on the health and wellbeing of rural communities is significant. Research by the Rural Services Network2 into the impact of fuel poverty in three rural communities in East Riding, Shropshire and Durham, found that the households struggling with heating costs were more likely to have someone suffering from cold related illnesses such as asthma, be experiencing fuel debt problems, be rationing fuel and going without other essentials in order to heat their homes. There are many things you can do to help deliver more affordable warmth, such as running home energy efficiency campaigns or facilitating heating oil buying clubs. Examples of solutions and further information sources are included at the back of this resource. Multiple objectives can be achieved by addressing affordable warmth in rural communities, including: improving the health and wellbeing of rural residents thereby reducing health service costs, reducing carbon emissions and helping to tackle climate change, reducing inequalities and delivering more sustainable rural communities. Factors Affecting Affordable Warmth in Rural Communities Rural homes are less energy efficient: a third of rural households are pre-1930’s properties of solid wall construction which makes them very energy inefficient – 35% of household heat can be lost through un-insulated walls. Solid wall homes are more expensive to insulate than homes with cavity walls. Many rural homes face higher off mains gas fuel costs: 37% of rural households do not have mains gas and are reliant on fuels such as electric heating, heating oil and LPG to heat their homes which can be more expensive. Lower average rural wages: there are significant pockets of poverty in rural areas where people are dependent on low average wages and basic pensions or seasonal employment. 1 National Energy Action (NEA) promotes energy efficiency initiatives to combat fuel poverty 2 The Depth and Impact of Rural Fuel Poverty, Rural Services Network for the CRC September 2010 Community Led Planning Toolkit 2 © ACRE and RCAN 2006-2012 TOPIC SHEET AFFORDABLE WARMTH What can you do to address fuel poverty in your Community Led Plan? A Community Led Plan (CLP) will allow your community to identify the extent and impact of fuel poverty in your area. A CLP will identify any actions and opportunities to help deliver more affordable warmth ensuring that everyone can get involved and contribute their ideas, time and resources to bringing about change. Using the LEAD framework, some pointers are provided below to help you consider how to promote affordable warmth when putting together a plan for your area. Community Led Planning Toolkit 3 © ACRE and RCAN 2006-2012 TOPIC SHEET - AFFORDABLE WARMTH To produce a good quality plan for your area, your community will need to progress through the 9 steps outlined in the ACRE Community Led Planning Toolkit, which can be summarised as ‘LEAD’. TOPIC SHEET Stage 1 - AFFORDABLE WARMTH Launch the Plan When starting out, it’s advisable to interest as many people, organisations and service providers as possible in your Community Led Plan. This will increase support for your plan and make it easier in the long run to deliver any actions you propose for your area. When forming your steering group, make sure it comprises a cross section of people from your community. You may also want to let other professionals know about your plan at this stage. For instance, many local authorities have an officer leading on housing, energy, climate change and fuel poverty issues who may be interested to know about your community’s intention to produce a Community Led Plan, particularly if you think actions relating to affordable warmth might arise. Likewise, many health service providers have an interest ensuring vulnerable households are able to heat their homes properly. Your local Citizens Advice Bureau may also be involved in issues relating to fuel poverty, fuel debt and energy efficiency advice. Stage 2 - Evidence local need and aspiration As you begin to research your Community Led Plan, it is important to find out whether affordable warmth is an important issue locally. You can find out whether this is the case by gathering existing facts and information about your area and speaking to local people. You can gather existing facts and information about affordable warmth from different sources. Often it can be helpful to contact your local authority to see what information they can provide on off gas areas, fuel poverty and housing condition. Many will have existing strategies, reports or survey data (such as English Housing Condition Surveys) that could be relevant to both your community and your wider local area. Try to find out how many communities in your area are not connected to mains gas, what heating fuels are mainly used (LPG, oil, solid fuels, electric), whether many households have undertaken any energy efficiency improvements (such as insulation) or heating upgrades, and what issues are being experienced locally on the cost of heating fuels? The most important thing to do however, is consult everyone locally to find out what they think about affordable warmth and whether this is an important enough topic to feature in your plan. When speaking to members of your community, you might find it useful to ask the following questions: Questions to explore affordable warmth through the CLP consultation 1. Is affordable warmth perceived to be important locally? Is there a widespread appetite for taking action to address it as part of the plan? 2. Are any organisations and groups in your community already taking actions on affordable warmth? Such as: • activities to improve home energy efficiency • fuel buying syndicates and clubs • activities to promote and invest in renewable heat such as air and ground sources heat pumps and biomass/wood fuelled heating. 3. What grants and programmes are available nationally and locally to help with energy efficiency and fuel poverty? You can do this using a range of different consultation methods to speak to people on their own terms. These are detailed in Step 4 of ACRE’s Community Led Planning Toolkit. Community Led Planning Toolkit 4 © ACRE and RCAN 2006-2012 TOPIC SHEET Stage 3 - AFFORDABLE WARMTH Agree and prioritise actions Once you have gathered sufficient information about your community, you will need to decide whether affordable warmth is a priority issue to be addressed in your plan. This should be considered alongside evidence of any other social, economic, cultural and environmental issues you are aware of. This may require further consultation with your community as explained in Step 5 of ACRE’s Community Led Planning Toolkit. • If heating oil is the main fuel used locally? If it is, actions could focus on helping to facilitate oil buying groups for clusters of houses to help reduce costs. • If most houses have explored energy efficiency improvements? If they haven’t, actions could focus on providing households with advice on how to save energy in the home and identify any local or national insulation programmes that could help. • If clusters of off gas households have very old inefficient heating systems? If they do, renewable solutions such as ground and air source heat pumps or biomass / wood fuelled heating systems could be explored as an action. Another action is to identify funding and resources that are available at a local, regional and national level to deliver affordable warmth. NEA maintains a database of regional and national programmes to address fuel poverty and many local authorities and energy supply companies also provide grants to some households. Remember, any actions that you develop should be ‘SMART’, e.g. Specific, Meaningful, Appropriate, Realistic and Timed. ACRE’s Community Led Planning Toolkit has more details on this. You should also make sure that anyone that has an interest in affordable warmth locally is included in this work. Stage 4 - Deliver and monitor actions As you begin to implement the work in your plan, remember to maintain positive relationships with all those who have an interest in the work that you are doing to raise awareness of affordable warmth and fuel poverty issues in your area. As the work builds momentum, you may well attract additional support for what you are trying to achieve, especially if it is helping other organisations such as the local council, housing and health organisations deliver on their objectives to improve health and wellbeing, improve energy efficiency and reduce carbon emissions. Finally, it is recommended that you review your entire plan regularly, probably every 2 to 5 years. If you originally proposed actions relating to affordable warmth, then check to see whether they have been achieved or not and whether it remains a priority. Understanding what has been successful can be useful for informing future planning. Community Led Planning Toolkit 5 © ACRE and RCAN 2006-2012 TOPIC SHEET - AFFORDABLE WARMTH If your community wants to address affordable warmth in your plan, you may need to undertake some further investigative work to plan specific actions that you can take forward. You may want to find out, for example: TOPIC SHEET AFFORDABLE WARMTH Case Studies Oxfordshire Bulk Oil Buying Scheme Oxfordshire Rural Community Council (ORCC) has set up a communitybased countywide oil buying syndicate. The aim of the syndicate is to reduce the cost of heating oil to communities by combining orders into one purchase and negotiating the best possible price. It also aims to coordinate oil deliveries across the whole county in a streamlined way to minimise the carbon footprint and reduce congestion on rural roads. The scheme is administered by ORCC Trading Ltd, a not for profit enterprise. There are currently over 300 members of this oil buying scheme and 30 community co-ordinators. Volunteer community co-ordinators gather orders from members in their local areas and send to ORCC Trading Ltd, who in turn negotiates with oil suppliers on members’ behalf to obtain the best price for a bulk order. Members save an average of £50 on a 1000 litre delivery. To become a member of the syndicate, residents fill out a membership form and pay an annual domestic membership fee of £20 (£30 for community buildings membership and £100 for businesses membership). Members can then order oil as many times as they need to during the year. The member contacts their community co-ordinator with their heating oil order. Once a month the community coordinator informs ORCC Trading Ltd of the total amount of oil needed in their area and ORCC Trading Ltd negotiates with suppliers to obtain the best price for a bulk oil order. ORCC Trading Ltd tells the community co-ordinator when to expect a delivery and how much it costs. Once it is confirmed the oil supplier contacts the member directly with a delivery date. The member pays the oil supplier direct for their delivery. For further information visit: http://www.oxonrcc.org.uk/home/bulk-oil-buying-scheme Community Led Planning Toolkit 6 © ACRE and RCAN 2006-2012 TOPIC SHEET AFFORDABLE WARMTH Somerset West Hard to Treat Homes Somerset West Hard to Treat Homes is an area based grant programme to fund improvements to old and cold rural properties. The scheme offers householders grants of up to 25% off solid-wall insulation, more complex loft insulation and floor insulation – up to a maximum of £2,500 per property. Householders on lowincomes will be offered low interest loans to cover the other 75% of the works. The scheme covers Sedgemoor, Taunton Deane and West Somerset, and is available to all on a first-comefirst-served basis. By pooling resources and funding, this new and pioneering initiative will improve many householders’ thermal comfort and improve their general wellbeing and at the same time reduce their fuel bills. For further information visit: http://www.cse.org.uk/projects/view/1154 FREE Initiative West Midlands In the West Midlands the Future of Rural Energy in England (FREE) initiative is working directly with parishes and parish plan groups to raise awareness of rural fuel poverty in their community. This takes place via workshops, after which FREE Energy Advisors work with individual parishes to devise an action plan, and community projects/events to address the issue locally. The aim of these workshops is to help key people in the parish (i.e. parish councillors and parish plan steering group members) to understand how rural fuel poverty exists within their parish and to highlight some of the ways in which communities and individuals can act on fuel poverty. Speakers from community groups who have undertaken a sustainability action plan will offer advice to other communities undertaking similar processes. Following the initial workshops the FREE initiative will work more intensively with three parishes in Shropshire and three in Herefordshire to develop an action plan and community projects, such as a community warmth/energy efficiency events, home energy surveys, community green days or other topical projects. For further information contact: [email protected] Community Led Planning Toolkit 7 © ACRE and RCAN 2006-2012 TOPIC SHEET - AFFORDABLE WARMTH In the winter of 2010/11, many people across parts of Somerset living in hard-to-treat homes (solid walls and off gas network) faced a choice between a cold home – or a very high fuel bill, which they could often ill afford. With rising energy prices this problem is only going to get worse. Three district councils in Somerset West, in partnership with the energy supplier Scottish and Southern Energy and the Centre for Sustainable Energy, are running an area based grant scheme for rural solid wall properties. TOPIC SHEET AFFORDABLE WARMTH Further information and support Information and help is available on energy efficiency and fuel poverty. Good places to start are: Rural Community Action Network (RCAN) RCAN members are charitable local development agencies, generally based at county level, which support and enable initiatives in rural communities. RCAN members can help you to develop a Community Plan for your area. Using ACRE’s Community Led Planning Toolkit, they can guide you through all aspects of the process, from recruiting volunteers, researching local facts and information, using the most appropriate consultation techniques and broking the involvement of different stakeholders to help deliver the actions you propose. Please visit the ACRE website for more information, including contact details of your nearest RCAN member: http://www.acre.org.uk/our-work/community-led-planning Future of Rural Energy in England (FREE) FREE is a rural energy advisorship programme, aimed purely at off-grid communities across England. This three year project is supported by Calor and involves ACRE, RCAN and National Energy Action. For further information and regional contact details visit www.calor.co.uk/about-calor/why-calorlpg/sustainability/free/england/ National Government The Government has a range of mechanisms and programmes to tackle fuel poverty. Warm Front is the Government’s main grant scheme to tackle fuel poverty through insulation. The ‘Green Deal’ is a new mechanism under development which will put in place a framework to enable people to invest in energy efficiency improvements without having to pay the upfront costs. Payments would be recouped through a charge in installments on the energy bill paid for through the energy savings made. Also, the extended Carbon Emissions Reduction Target (CERT) delivered through large energy suppliers, will in future years focus more on encouraging solid wall insulation which is an opportunity for rural communities. Energy suppliers are often looking for local partners to help deliver their CERT obligations. The Government is also exploring how area-based community energy efficiency partnerships led by local councils involving community groups and the private sector, could play a more effective part in tackling fuel poverty locally. For more information go to: http://www.decc.gov.uk/en/content/cms/what_we_do/consumers/fuel_poverty/fuel_poverty.aspx Local authorities Your local authority may have an energy/fuel poverty and/or climate change officer who may be able to help with information and advice. If not, the housing officer often has responsibility for energy efficiency and fuel poverty within their remit. Community Led Planning Toolkit 8 © ACRE and RCAN 2006-2012 TOPIC SHEET AFFORDABLE WARMTH National Energy Action (NEA) NEA is a national charity whose mission is to ensure that everyone in the UK can afford to meet their energy needs in the home, sufficient for health, comfort and well being. NEA’s website has a range of resources and advice to help communities tackle fuel poverty and a useful funding database profiling national and local grant schemes. For more information visit www.nea.org.uk Energy Saving Trust The Energy Saving Trust is the UK's leading impartial organisation helping people to save energy and reduce carbon emissions. Their website has a range of tools and resources to help communities save energy and they also provide tailored advice to community groups. For more information visit www.energysavingtrust.org.uk The Energy Efficiency Partnership for Homes is a network of over 600 organisations from the public, private and voluntary sectors. By working together they aim to reduce the energy consumed by UK households as well as the number of people who are unable to sufficiently heat their homes during winter (known as 'fuel poverty'). For more information visit http://www.eeph.org.uk/ Acknowledgements This resource was produced by Action with Communities in Rural England (ACRE) in collaboration with Calor. Community Led Planning Toolkit 9 © ACRE and RCAN 2006-2012 TOPIC SHEET - AFFORDABLE WARMTH Energy Efficiency Partnership for Homes (EEPH) TOPIC SHEET AFFORDABLE WARMTH FREE – The Future of Rural Energy Since 2010, Calor has been running FREE – the Future of Rural Energy – a 3 year, £1 million, rural energy advisorship initiative, aimed at tackling fuel poverty and promoting energy efficiency in off gas grid rural communities across England, Scotland and Wales. Bringing independent advice and information to rural residents, the initiative is both helping individual households to focus on their energy consumption and costs, and also encouraging local communities to work together to promote best practice in energy efficiency and carbon reduction. Lack of assistance for rural communities In a climate of rising bills and economic uncertainty, many people are worried about the cost of energy as well as the environmental impact of their energy use. With off gas grid customers, this can be exacerbated due to their more complex fuel options, housing types and social demographics. Their circumstances may not always equate to social poverty – many of these households would be deemed well off – but they face equally serious issues with energy efficiency and cost. Furthermore, rural communities are facing pressure to contribute to the Government’s target of a 50% reduction in carbon emissions by 2050, and fuel poverty alleviation by 2016, but with no realistic plan or support specifically developed for the countryside. FREE – a bespoke rural energy initiative With 75% of its business taking place in off grid areas, Calor understands rural energy, and identified the need for a bespoke solution to address the lack of both credible independent information and formal assistance schemes relevant to rural householders. The FREE initiative, therefore, encompasses a suite of materials specifically tailored to a range of rural properties, energy options and social demographics. Furthermore, FREE is funding household energy audits in eight rural communities across England, with the intention of ascertaining both the specific nature of the rural housing stock, and the different behavioural, social and technical solutions required in order to improve energy efficiency and reduce fuel bills. Specialist rural energy advisors have been developed across the RCAN network, helping off gas grid households to understand the full range of options open to them. Calor – the rural energy experts Calor Gas Ltd is the leading supplier of LPG (Liquefied Petroleum Gas) to rural homes and businesses, and has been serving rural communities since 1935. Expert partners FREE brings together a network of expert partners and specialist advisors, comprising the national fuel poverty charity, National Energy Action (NEA), Action with Communities in Rural England (ACRE), the Rural Community Action Network (RCAN), the Energy Saving Trust (EST) and the Commission for Rural Communities (CRC). The overarching aim of FREE is to give to rural property owners a strong voice in the energy efficiency debate, and the same opportunity to reduce their carbon emissions and fuel costs as exists in urban on grid areas, getting bespoke advice and help to the people that need it most. If you would like to find out more about FREE, or would like copies of the bespoke rural energy resources produced by Calor, the EST and NEA, please visit www.calor.co.uk/FREE Community Led Planning Toolkit 10 © ACRE and RCAN 2006-2012
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