Sheffield Affordable Warmth Programme
1.0
Purpose of report
1.1
Across the whole of society, environmental issues are assuming
increasing prominence. The impact of the existing and new housing
stock on the environment is significant and provision of affordable
warmth is crucial to tackle fuel poverty. Both the Planning and Housing
Strategic frameworks are being updated to better respond to
environmental issues and limit CO2 emissions from housing.
1.2
Improving the environmental and energy performance of homes across
the city is a key element in the council’s contribution to an
environmentally sustainable future for the City. The impact of providing
heat and energy to the city’s 232,000 homes is a significant element of
the City’s carbon footprint and the need to provide affordable warmth to
the most vulnerable of people throughout the city has been a long
standing aim and remains a key challenge. Sheffield has 28,000
private sector homes that do not meet the decency standard,
approximately 16,000 of which are occupied by vulnerable households.
Although energy efficiency i.e. the means to heat a home affordably
and to insulate it effectively is a principle pillar of the decency standard,
we know through research that many of the owners of these properties
do not have the income to finance the necessary improvements.
Consequently large numbers of especially older people struggle to
meet the cost of heating during the winter months and each year there
are more people who die during the winter than the summer.
Nationally, there were around 24,000 excess winter deaths during
2006/07. Tackling fuel poverty reduces the numbers of excess winter
deaths, but in addition can be shown to reduce a range of other health
problems such as incidences of strokes and cardio-vascular problems.
1.3
Although in some properties it is not possible to achieve affordable
warmth without more expensive measures, in many homes it is
possible to make big improvements in energy efficiency and reduce
bills by straightforward upgrades to insulation standards, more efficient
boilers and better heating controls.
2.0
Council housing
2.1
In 2006 an assessment of the Council’s carbon footprint identified that
Council housing accounted for 68% of its overall CO2 emissions. In
recent years we have made significant progress in driving up the
energy efficiency of our Council homes as part off a strategy to tackle
fuel poverty, investing over £50m between 2000-2006, reducing energy
bills by an estimated £11m and improving NHER ratings on average
from 4.3 to 7.2. The Decent Homes programme will complete our
investment in cavity and loft insulation, and combined with heating and
double-glazing measures we estimate we will reduce Co2 emissions by
39% through improvements in energy efficiency by 2011.
3.0
Private sector housing
3.1
Over the last few years a range of grants and discounted energy
efficiency schemes have been developed and now operate across the
city. These include:
Warm Front – a scheme that provides insulation and central
heating for low income households. This government funded
scheme is open to those in receipt of certain means tested
benefits.

Save N Warm – a locally run scheme by the four South Yorkshire
Councils offering free insulation for ‘priority householders’. The
scheme, which is slightly more flexible than Warm Front, also
offers insulation through a discounted scheme for others. (currently
£149 flat rate). Save N Warm is funded by one of the energy
suppliers, currently NPower and administered by the joint Energy
Advice Centre in Doncaster.

SYHARP Grant – a scheme that provides central heating for low
income households with old inefficient boilers and provides “Warm
Front” top up contributions. This scheme is slightly more flexible
than the Warm Front scheme being funded by resources through
the Regional Housing Board, and administered by the Energy
Advice Centre.

Energy Company schemes – funded by government resources,
the schemes are similar to our Save N Warm initiative although
there is more variation in price and frequency of the offer. The
schemes tend to be ‘come and go’ dependent on the level of
funding available.
3.2
Despite this range of grants and intensive marketing through mail shots
and roadshows (for example the Council post out to every eligible
household that receives Council Tax benefit and run over 20
community roadshows each year) there are always lots of households
who do not take up grants or discounted schemes.
3.3
Because of this, a number of local authorities and other organisations
have in addition launched targeted campaigns in particular areas.
These aim to:
Simplify access to grants through a ‘one-stop shop’ approach.
Provide dedicated assistance to those vulnerable or hard to reach
households who need a helping hand or reassurance
Raise demand through large-scale marketing.
The better ones have also added other features such as benefit take
up assistance, health and fire safety promotions etc.
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These are often referred to as ‘Warm Zones’ though this is actually a
brand created by the National Energy Action (NEA) charity.
These targeted campaigns build on existing local strengths and
community networks and tailor the structure of the initiative to
maximise the potential external funding, particularly those from Energy
Supply Companies. By topping this up with local capital it is possible to
achieve a free insulation offer for the majority of households rather than
simply promoting existing grants and discounts.
3.4
Government has recognised the effectiveness of the targeted
campaign approach and provided one-off Community Energy Efficiency
Fund (CEEF) resources in the 2007/8 budget to boost this type of
scheme. The Council has been successful in securing some of this
resource. The funding is for development including business planning,
establishing delivery capacity, marketing etc but does not fund actual
energy efficiency measures.
4.0
The Sheffield Affordable Warmth Programme
4.1
The Sheffield proposal for which CEEF set up funding has been
secured is to establish a large and high profile city-wide initiative.
Drawing on the best practice from elsewhere, it will operate through a
phased programme of street by street promotion to maximise potential
take up. The economies of scale this brings will allow a free package to
be offered to the majority of households included in this street by street
promotion.
4.2
The scheme will require careful branding to ensure distinction from the
variety of other products available. It will operate as one brand with a
number of products behind it, thereby simplifying the access process
for householders by providing a single point of contact that will act on
their behalf to identify and organise delivery of the most appropriate
product or products.
4.3
Subject to a continuation of funding (available currently in 3 year
blocks) the aim is to eventually cover the whole of Sheffield. However
to ensure the highest profile and maximise take up by the most
vulnerable households, existing grants and discounted work will
continue to be heavily marketed across the city to all households
outside of the initial promotion areas.
4.4
Early work is focussing on identifying the areas with the highest levels
of private sector households at risk of fuel poverty and on putting
together a funding package that draws in resources from the energy
supply companies (referred to as CERT funding), Warm Front grants,
Transfer South Yorkshire and the Neighbourhoods Investment
Programme.
4.5
Areas for initial promotion are yet to be finalised, but is proposed the
principles for selection focus on a ‘greatest need first’ approach. The
Council currently runs a large number of Affordable Warmth roadshows
each year and it is also proposed that some priority is given to areas
that whilst having above average numbers of vulnerable households
have not yet benefited from this kind of event. A full list of the areas
likely to be included within the first three year phase of the scheme is
attached at appendix 1.
4.6
Negotiations on the funding package have not yet been concluded.
However, modelling work carried out to secure the CEEF funding from
Government suggests matched funding of £1.5 million of Housing
Market Renewal (HMR) funding and £1.5 million of the Council’s own
resources over a three year programme would attract external funding
from CERT and Warm Front of approximately £7.5 million. It is
estimated that this level of funding would be adequate to complete the
programme to all the areas listed in appendix 1. If take up in these
areas proved to be less than estimated then it would be possible to
commence work in other areas within the three years.
4.7
To assess the numbers of homes the funding would cover,
assumptions have been made on the percentage of properties
with/without cavity walls, those requiring loft insulation top ups and
those with inadequate heating (for Warm Front grants). Assumptions
have also been made on the likely level of take up based on
experience from other areas.
4.8
These estimates suggest the initial three year programme would
generate the following measures:
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64,000 homes contacted
Of these 34,149 households would be elderly, contain young
children or a member with a long term illness or disability.
15,792 lofts insulated
4,704 cavity walls insulated
1.440 central heating measures
Detailed monitoring of the CO2 savings that arise from these will be
undertaken during the programme. An accurate assessment requires
information on property type, before and after changes and the fuel
type used.
However, early estimates based on average figures shows these
measures would generate CO2 reductions of between 11 and 12
thousand tonnes per annum once installed.
4.9
As outlined earlier, the objective would be to maximise take up and to
create a momentum that assumes every household contacted would
be able to take some measure, or at the least receive energy efficiency
advice. Where required, the team established would provide additional
assistance to older residents needing for example help to clear a loft
space.
4.10
Economies of scale by having contractors working in each area means
cheaper contract rates, and will enable whole buildings with continuous
cavities such as flats and semi-detached homes to be done together.
4.11 By working in partnership with other organisations, a further package of
help would be offered. This would include benefit take ups, health
referrals, fire safety promotions and general advice on energy
efficiency.
4.12 Although the initial focus would be on the most cost effective measures
i.e. cavity and loft insulation, Sheffield has a large percentage of
properties with solid walls. Measures to improve energy efficiency are
more difficult to achieve with these types of properties. However, the
one to one approach may offer the potential to offer discounts on for
example external wall insulation, or to offer advice on small-scale
renewable energy.
4.13 A key element of successful schemes is good communication and
marketing. Work with existing community, faith and BME organisations,
Area Panels, local schools, GP Surgeries, etc will be important, and the
team will draw on examples of best practice achieved elsewhere.
4.14 Consideration is being given to the potential for using thermal imaging
equipment as both a marketing tool and as an aid to identify building
faults that contribute to poor energy efficiency.
4.15
Some months ago an estimate was prepared of the potential cost of
completing this entire programme across the whole city within three
years. At that time the estimate was based on the best information
available. This was a crude pro-rata comparison with the costs of the
programme being implemented in Kirlklees. Based on this, the costs
to the Council were estimated to be £5m per year, a total of £15m, and
were regarded as prohibitive. Since then the Council has received the
data from our housing market assessment survey. This includes
information on numbers of cavity walls compared to solid stone walls
and on estimates of loft insulation thicknesses. Together with the
modelling tool provided by the CEEF, this information now provides a
more refined estimate of the likely cost of completing the programme
across the whole city. The revised estimate is that the total cost would
be £21m of which the Council would need to fund £7m. It is important
to point out that the housing market assessment was based on a small
sample and on questionaires completed by householders rather than
on property inspections. Consequently the estimated cost can only be
treated as indicative.
4.16
This revised estimate of city wide costs is significantly lower than the
original estimate. However, completion of the whole programme within
three years would still require the Council to allocate additional funding
of £4m over the next three years and this could not be achieved
without a serious detrimental impact on other capital programme
commitments. The estimate does provide reassurance that completion
of the city wide programme is likely to be achievable within a further 3
year period, subject to external funding continuing to be available.
5.0
Financial implications
5.1
The costs of developing this initiative during 2007/08, including
establishing the delivery vehicle referred to in paragraph 3.4 are being
funded with a government Community Energy Efficiency Fund (CEEF)
grant of £187,502.
5.2
Negotiations on the full implementation of the initiative have not yet
been concluded as this is dependent on further analysis and
discussions with the main CERT funders. However, modelling work
carried out to secure the CEEF funding from the government
suggested matched funding of £1.5 million of Housing Market Renewal
(HMR) funding and £1.5m from the Council’s own resources over a
three year programme would attract external funding from CERT and
Warm Front of approximately £7.5 million. The HMR funding is subject
to resources being available through the 2008/11 HMR programme
6.0
Environmental implications
6.1
Improving thermal performance of buildings through added insulation is
a key measure to reduce heating losses and carbon emissions. As well
as reducing the incidence of fuel poverty, this also helps to reduce
impacts on climate change and Sheffield’s carbon footprint.
6.2
The impacts from this initiative will be monitored and the results of this
will be publicised and included in relevant council reports etc.
6.3
As well as these direct savings from better insulation, the Affordable
Warmth Programme will also promote ways that households can save
energy and/or reduce their impacts on the environment through
behavioural and lifestyle changes.
7.0
Equalities Implications
7.1
The Equalities Impact Assessment has identified that fuel poverty is
more prevalent amongst BME households, those with a long term
health problem or disability and disproportionately affects older
residents. Levels of poverty and low incomes are also greater for
women, and in particular the proportion of lone parents households
headed by women is much higher.
7.2
By targeting the areas that have his initiative will have positive impacts
on these groups as tackling fuel poverty has been shown to improve a
range of health problems that are exacerbated by poor heating General
‘well-being’ and increases in disposable income through having lower
fuel bills are also positive impacts.
7.3
To ensure fair access to the scheme, impacts on different groups will
be monitored, and the implementation of the initiative will include
appropriate training and policies to ensure maximum take up by all
households within the targeted areas.
8.0
Recommendations
8.1
That Cabinet approves the work outlined to launch an ambitious citywide Affordable Warmth programme, subject to funding being secured
from April 2008
8.2
The Director of Housing in consultation with the Cabinet Member for
Neighbourhoods and Community Care be authorised to implement the
scheme and to determine the criteria for assistance and the areas and
streets to which it will apply
8.3
The Affordable Warmth Scheme be included in the Assistance Policy of
the Private Sector Housing Services Policy and the Director of Housing
in consultation with the Cabinet Member for Neighbourhoods and
Community Care be authorised to amend the Policy appropriately.
.
APPENDIX 1: Potential areas to be considered for inclusion in Phase 1
of the Affordable Warmth Programme
Areas to be targeted for each phase of street by street promotion will be taken
primarily from those having high levels of private sector households in fuel
poverty. Priority will also given to areas that whilst having above average
numbers of vulnerable households have not yet benefited from this kind of
promotion.
Although further analysis is being undertaken, the following areas are likely to
be included in Phase 1.
High Green
Shiregreen
New Parson Cross
Wincobank
Brightside
Flower
Stubbin / Brushes
Firth Park
Fir Vale
Old Parson Cross
Longley
Shirecliffe
Southey Green
Fox Hill
Firshill
Woodside
Abbeyfield
Burngreave
Tinsley
Darnall
Housteads
Handsworth
Woodhouse
Halfway
Westfield
Waterthorpe
Hackenthorpe
Woodthorpe
Manor
Acres Hill
Wybourn
Park Hill
Granville
Arbourthorne
Norfolk Park
Gleadless Valley
Birley
Base Green
Batemoor / Jordanthorpe
Hemsworth
Lowedges
Heeley
Sharrow
Highfield
Broomhall
Crookesmoor
Netherthorpe
Upperthorpe
Langsett
Walkley
Woodland View
Ecclesfield