Overview and Scrutiny
Report Title
2 March 2011
Fuel Poverty Scrutiny Review
Are there background papers?
Yes
No
Exempt
Yes
No
Key Decision?
Yes
No
If Key Decision is it on the Forward Plan?
Yes
No
Decision for Full Council?
Yes
No
Reason for Exemption?
Ward(s) affected?
Stalham area
Responsible Cabinet Member name
Clive Stockton / Eric Seward
Contact Officer
Ming Chang / Helen Dixon
E-mail address
Ming.chang@north-norfolk.gov.uk
Helen.dixon@north-norfolk.gov.uk
Telephone number
01263 516237 / 01236 516271
Are there Non Electronic Appendices?
Yes
No
List of Background Papers
File Location:
1.1.
PLEASE REFER TO SECTION 7 OF THE GUIDANCE NOTES FOR
TEMPLATES
Implications / Risks:
Have you identified & explained within the report the
implications of the options available to members?
Yes
None
Yes
None
(Implications should include financial, legal and links
to the Council’s existing policies and strategies)
Have you highlighted the Risks to the Council?
1.2.
Financial Implications and Risks to the
Council should have their own separate
headings. It is not acceptable to simply state
that financial implications or risks have been
alluded to in the main body of the report.
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2 March 2011
Have you considered Sustainability issues in
relation to this report?
Yes
None
Yes
None
Sustainability should have its own separate
heading. It is not acceptable to simply state that
Sustainability has been alluded to in the main body of
the report.
Have you considered Equality and Diversity issues
in relation to this report?
Equality and Diversity should have its own separate
heading. It is not acceptable to simply state that
Equality and Diversity has been alluded to in the
main body of the report.
This report has been subject to the following processes:
Consultations with:
Cabinet Member
Yes
If not please
state reason
below
Local Member
Yes
If not please
state reason
below
S151 Officer
Yes
If not please
state reason
below
Monitoring Officer
Yes
If not please
state reason
below
Democratic Services Manager
Yes
If not please
state reason
below
Communications Manager
Yes
If not please
state reason
below
Other Head(s) of Service:
Others:
Strategic Housing Manager
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2 March 2011
Please confirm this report has been signed off by:
Management Team
Yes
Not apt
Relevant Strategic Director
Yes
Not apt
The Chief Executive
Yes
Not apt
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2 March 2011
Agenda Item No____7_________
FUEL POVERTY SCRUTINY REVIEW
Summary:
This report provides an overview of fuel poverty in the District.
Conclusions:
Recommendations:
Cabinet member(s):
Ward(s) affected:
Clive Stockton / Eric Seward
Stalham area initially
Contact Officer, telephone
number, and e-mail:
Ming.chang@north-norfolk.gov.uk 01263 516237
1.
Helen.dixon@north-norfolk.gov.uk 01236 516271
Background
1.1 East of England Fuel Poverty Declaration
At the Full Council meeting on 14 December 2010, the leader of the council signed the
East of England Fuel Poverty declaration on behalf of the council. This commits the
council to:
a) consider affordable warmth when developing policy and practice based
interventions
b) work in partnership to implement effective affordable warmth solutions for
households
c) support the development and adoption of practical actions that will assist
households to achieve affordable warmth
d) employ low carbon affordable warm solutions where these are advantageous to
the household
The leader, portfolio member for the environment, sustainability champion and chair of
overview and scrutiny all requested that action be taken to reduce fuel poverty in the
district in 2011/12 at the Environmental Sustainability Board on 27 Nov 2010. This
report provides a background to the issue for members and proposes a pilot project for
implementation in 2011/12.
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2 March 2011
1.2 North Norfolk Housing Strategy Discussion Document (July 2010)
The pilot project proposed in section 7 will help to inform one of this document’s key
themes; ‘development of a policy framework to ensure standards in the existing housing
stock.’
1.3 NNDC Health Strategy 2011-2015
Taking action to reduce levels of fuel poverty in the district will contribute to the following
strategic priorities of the health strategy:
a) The impact that Council services have or can have on health outcomes both
directly or indirectly will be identified and maximised.
b) Council services will wherever possible align with the relevant aims of key
partners whilst focussing on the prevention of ill health.
1.4 Fuel Poverty as a cross cutting issue
The impacts of fuel poverty are many and cross cutting; it affects the health and well
being, and levels of debt of residents and the CO2 emissions generated from houses in
the district. There is also an important link to make with benefits advice, as ensuring
households are claiming all the benefits they are entitled to can help with debt issues
and increase the number of households eligible for Warm Front grants.
1.5 Definition of Fuel Poverty
Households that spend 10% or more of their income on fuel in order to achieve an
adequate standard of warmth (18-21oc) are said to be in fuel poverty. Many households
are not willing or able to spend this much so homes will be under-heated and residents
cold.
The following variables generally determine whether a household is in fuel poverty:
a) income of household
b) cost of energy (this is variable but with an overall trend of increasing costs –
between 2003 and 2006 average domestic fuel prices rose by 50%)
c) amount of energy used to achieve an adequate standard of warmth (well
insulated properties will use less fuel)
d) occupation of the dwelling (under occupation tends to result in fuel poverty)
The government uses the standard assessment procedure (SAP) as a proxy measure
of fuel poverty.
The standard assessment procedure (SAP) is the methodology for calculating the
energy performance of domestic dwellings. The rating is based on the energy costs
associated with space heating, water heating, ventilation and lighting in a dwelling and
is adjusted for floor area. The rating is expressed on a scale of 1 to 100, the higher the
number the lower the running costs. Factors that have to be measured in order to
calculate SAP are construction materials, insulation, ventilation, efficiency and control of
heating and type of fuel used.
If a property has a SAP of less than 35 and the household is in receipt of a qualifying
benefit it is regarded to be in fuel poverty, and these properties are also likely to contain
Overview and Scrutiny
2 March 2011
a category 1 health hazard. Properties with a SAP of over 65 are generally thought to
be protected from fuel poverty.
2. National trends
The annual fuel poverty statistics published in October 2010 estimated that in 2008
there were around 4.5 million households in fuel poverty in the UK, with 3.75 million of
these classed as vulnerable (households containing the elderly, children and long term
sick and disabled).
The House of Commons Select Committee on Energy and Climate Change (March
2010) reported that households not connected to the gas grid have to pay more for their
fuel and therefore a high percentage of them are in fuel poverty.
Headline conclusions from a recent Rural Services Network report; ‘Understanding the
real depth and impact of fuel poverty in rural England’ (2010) concluded that rural
households affected by fuel poverty are more likely to live in pre-WW2 properties and to
be owner occupiers. Fuel Poverty is exacerbated in rural areas due to the following:
a) higher number of solid walled properties
b) higher number of off gas properties with higher energy costs e.g. oil
c) lower than average wages
3. Impacts of fuel poverty
3.1 Health
The effect of fuel poverty on heath is now well recognised, with poor housing identified
as a key factor in health inequality. Extended periods of time spent in a cold home can
increase the likelihood or premature death, either as a direct result of hypothermia or
due to a negative impact on existing conditions. Typically between 30,000 and 50,000
more people die in the winter in the UK than would be expected given the average
death rate for the year. Condensation and mould growth are also likely to be present in
inadequately heated homes. Households in fuel poverty are therefore more likely to
have someone suffering from;
a) asthma and other respiratory diseases
b) cardiovascular diseases and heart attack
c) stress and depression
d) increase risk of falls
e) increased risk of hypothermia
It is now widely accepted that energy efficiency improvements can lead to positive gains
in health and well-being by making homes warm and heating affordable.
3.2 Affordability and debt
Many households in fuel poverty go without other things in order to pay for fuel, and
many are in fuel debt.
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2 March 2011
The affordability of off network fuels such as oil is a particular issue for rural households
as the price of oil fluctuates and is particularly volatile.
The use of pre-payment meters is more common in households in fuel poverty at an
extra cost to the household of about £120 per year.
3.3 CO2 emissions
123 million tonnes of CO2 is emitted from domestic properties in the UK per annum. A
disproportionate amount of CO2 is emitted from so called hard to treat properties
(mainly solid walled and off gas) and it is households in such properties who are at
greater risk of fuel poverty.
4. National Interventions
Past central government policies and interventions have mainly focussed on cavity wall
and loft insulation and there has been a lack of funding for solid wall insulation and off
gas properties.
4.1 Warm Front
This is the government’s main grant-funded programme for tackling fuel poverty and
was launched in 2000. Since 2005 Eaga plc has managed the scheme throughout
England. It is for people who own or privately rent their home and are in receipt of
certain benefits. The grant provides a package of energy efficiency and heating
measures up to the value of £3,5000 or £6,000 where oil central heating is involved.
Where the cost of the work is in excess of the above the householder has to pay the
difference.
Officers have received a number of complaints from residents regarding Warm Front,
including the time taken for the work to take place and the cost of the work compared to
quotes obtained from local suppliers.
Central Government funding for the warm front programme is being reduced over the
next 2 years in light of the Comprehensive Spending Review, and the eligibility criteria
will change, with government indicating that it wants to make sure that only the most
vulnerable are the focus of government schemes and priorities. Warm Front grants are
likely to end in 2012-13 and be replaced by the Green Deal (see below).
4.2 Carbon Emission Reduction Target (CERT)
This requires all domestic energy suppliers with a customer base in excess of 50,000
customers to make savings in the amount of CO2 emitted by householders. Suppliers
meet this target by promoting the uptake of low carbon energy solutions to household
energy consumers, thereby assisting them to reduce the carbon footprint of their
homes. The CERT requirement ends in December 2012 when it will be replaced by the
Green Deal.
4.3 Future interventions: The Green Deal
Through the Energy Bill which was introduced to parliament in December 2010 the
Government is establishing a framework to enable private firms to offer consumers
Overview and Scrutiny
2 March 2011
energy efficiency improvements to their homes, community spaces and businesses at
no upfront cost, and recoup payments through a charge in installments on the energy
bill. It is due to be launched in autumn 2012 and Local Authorities are expected to take
a key role in promoting the Green Deal to their residents.
4.4 The Energy Saving Trust
The Energy Saving Trust is the key source of help and advice for households wanting to
improve the energy efficiency of their homes. They have comprehensive information
available on their website and a free-phone help line connected to a regional advice
centre (London for the East of England). Their grants database offers the latest advice
on grants and offers available to householders, including Warm Front and CERT
initiatives.
5. The situation in North Norfolk: Number and location of households in fuel
poverty
5.1 Results of surveys for National Indictor 187 – Tackling Fuel Poverty
The Council undertook postal surveys of residents in the district in 2009 and 2010 to
determine the levels of fuel poverty in accordance with National Indicator 187. However,
it is not considered that the information provided is sufficiently robust to give an
accurate picture of fuel poverty for the district. The Government no longer requires local
authorities to report performance against the National Indicator set, the Council has
therefore decided not to undertake any further postal questionnaires.
5.2 Private Sector House Condition Survey 2007
This survey estimated the following levels of fuel poverty in the district:
Area
economically vulnerable
households
fuel poverty households
number
%
number
%
Coastal
1187
33.4
379
10.7
Fakenham
1867
23.7
663
8.4
Holt
1257
21.9
207
3.6
Cromer/Sheringham 1995
23.7
1827
21.7
North Walsham
2515
20.3
921
7.4
Stalham
1771
20.2
1161
13.2
District totals
10589
22.7%
5157
11%
The average SAP rating for properties in the District is 59.
There are 2,559 properties with a rating under 40 and 28,427 with a rating under 70.
There is a clear link with energy efficiency; rates of fuel poverty are greater for
households occupying a dwelling with a low SAP rating, compared with households in
dwellings with a higher SAP rating.
The report indicates statistically significant differences in the relative levels of fuel
poverty in:
Overview and Scrutiny
2 March 2011
a) The Cromer/Sheringham (21.7%) and Stalham Areas (13.2%). These areas
account for 58% of all households in fuel poverty
b) Private rented sector (19.1%)
c) Non-decent homes (14.4%)
d) Dwellings with SAP ratings of below 50
e) Households headed by individuals aged 55 to 64. However, 42.4% of all
households in fuel poverty are headed by an individual aged 65 or over
f) Large adult households (35.0%)
g) Economically vulnerable households (28.9%)
5.3 The Centre for Sustainable Energy’s Fuel Poverty Indicator (2003)
The Fuel Poverty Indicator is a statistical model predicting fuel poverty based on the
2003 English House Condition Survey (EHCS) and 2001 Census. The ten wards with
the predicted highest no of households in fuel poverty according to this indicator are:
a) Walsingham
b) Happisburgh
c) The Raynhams
d) Corpusty
e) Sheringham North
f) Glaven Valley
g) Astley
h) Poppyland
i) Gaunt
j) Erpingham
5.4 Energy Saving Trust’s database (HEED)
The EST has included benefit claimant data from the Department of Work and Pensions
as well as the CSE fuel poverty indicator in order to assist in the targeting of households
who are likely to be in fuel poverty.
According to this database the ten wards with the predicted highest no households likely
to be in fuel poverty are:
a) Sheringham North
b) The Runtons
c) Hoveton
d) St Benet
e) High Heath
f) Mundesley
g) Stalham and Sutton
h) Sheringham South
i) Chaucer
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2 March 2011
j) Suffield Park
5.5 Conclusions on instances of fuel poverty in the District
Determining the level of fuel poverty can involve using a number of different proxys,
which generate different results. In the absence of detailed household data fuel poverty
is not easy to determine and changes all the time as fuel costs and incomes change.
Two areas consistently appear in the above 3 information sources:
a) Cromer/Sheringham
b) Stalham
5.6 Estimated CO2 emissions from domestic properties (NI186 data)
As part of the national reporting by Defra for National Indicator 186 (CO2 emissions from
the district per capita), the following estimates of the CO2 emissions in North Norfolk
District, the East of England and England have been made.
year
North Norfolk
East of England
England
tones CO2 per capita
tones CO2 per capita
tones CO2 per capita
2005
2.9
2.5
2.5
2006
2.9
2.5
2.5
2007
2.8
2.4
2.4
2008
2.8
2.3
2.4
Whilst CO2 emissions in the District have fallen slightly since 2005, they are still higher
than both the East of England and national averages.
6. Action to date to tackle fuel poverty in North Norfolk
6.1 Summary of Warm Front activity in North Norfolk
A total of 2,769 households have received a grant through Warm Front from April 2005
until March 2010. Please note that as households can have more than one measure
double counting will occur in the table below. The measures column gives information
on the type of interventions a Warm Front grant will cover. One of the issues for North
Norfolk is that warm front grants are not available for solid wall insulation and
secondary/double glazing.
Overview and Scrutiny
2 March 2011
Measure
2005-6 2006-7 2007-8 2008-9 200910
Totals measures
Boiler Replacement
gas
5
78
107
1
1
14
35
49
24
Boiler replacement
LPG
Boiler replacement
oil
Cavity wall
insulation
76
113
132
126
111
558
Energy efficient light
bulbs
212
608
722
690
503
2,735
Draught-proofing
62
125
109
109
96
501
Electric central
heating
27
Electric heating
37
Electric storage
heating
2
Fully insulated hot
water tank
1
Gas central heating
13
Heating
repairs/replacement
boiler
15
Loft insulation
27
37
16
49
67
57
191
4
2
7
14
26
26
12
91
3
12
214
231
475
119
236
249
245
194
1,043
Material supply
16
87
241
256
285
885
New gas supply
11
2
8
1
22
Oil central heating
3
10
24
11
28
76
Tank jackets
16
27
33
22
18
116
Wall heating
4
4
Emergency heaters
4
Heat pump
Totals - households
213
608
724
692
2
6
1
1
532
6.2 Follow up work from NI187 surveys
Returned postal surveys where the property achieved a SAP rating under 35 were
visited by a Technical Officer (Housing). In many cases the survey had been incorrectly
completed and the properties were not in fact under 35. The Technical Officer also
receives some referrals and the case studies below give some examples of the advice
and financial support given.
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2 March 2011
Case Study 1
Property Type: 1 bedroom mid-terrace house, built pre-1900
Roof: Traditional tiled roof, no access to loft from inside property
Walls: Solid wall to front & back
Windows: Double glazed windows
Primary heating: Electric storage heaters & immersion hot water cylinder
Secondary heating: Enclosed multi-fuel burner
SAP rating before: 39
Work requested & carried out:
The work requested was to increase insulation in roof space up to 300mm thick if
possible. There was only 25mm thick insulation in roof void. There was not enough
loft space to create a loft hatch from within the house. We had to erect scaffolding on
both front and rear of property in order to remove a few rows of roof tiles to allow
sufficient space to lay the insulation within the roof void and re-fix the roof tiles back.
The project cost: £2,950 and took 7 working days to complete.
SAP rating after: 54
Estimated saving on heating & hot water: £174 per year and 1.7 tonnes per year CO2
reduction
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2 March 2011
Case Study 2
Property Type: 2 bedroom mid-terrace cottage, built 1976-1982
Roof: Traditional tiled roof with loft access, 100mm insulation
Wall: Solid walls to front and back
Windows: single glazed timber framed
Primary heating: Parkray solid fuel heating & hot water. In addition electric immersion
for hot water cylinder
Secondary heating: portable electric heaters
SAP rating before: 51
Work requested & carried out:
To pay the top up on Warm Front grant to replace the existing damaged Parkray with
more energy efficient model. Replace all rotten timber framed single glazed windows
with low-E double glazing and wooden external back door with uPVC double glazed
door.
Advice was given to increase loft insulation to 300mm but occupier is not able to
clear the loft for this to be carried out at the same time, agreed that she will get this
done at a later date.
The project cost: £4,875.15 and took 1 day to complete the windows & door, but 10
days or more for Warm Front to complete their work.
SAP rating after: 67
Estimated saving on heating & hot water: £131 per year and 0.7 tonnes per year CO2
reduction
6.3 Referrals to EST free phone helpline
Most calls to the council regarding energy efficiency and grants are referred to the EST
free phone helpline.
7. The way forward: Proposed pilot project 2011-12
7.1 Summary of opportunities resulting from project:
a) Improved health and well being of district’s residents.
b) Improved levels of debt amongst district’s residents.
c) Reduced CO2 emissions from district.
d) Stimulate local economy thorough use of local firms to install measures to reduce
fuel poverty.
The Council is proposing to use existing staff resource to undertake household surveys
in targeted areas to build up a database of SAP ratings and therefore fuel poverty in the
district, whilst at the same time giving advice to householders on how they can improve
the energy efficiency of their homes and reduce their fuel costs. The Council will use the
data to consider how best to use any resource it has available to alleviate fuel poverty in
the future.
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2 March 2011
The Council has software which will enable it to develop a database for recording the
SAP rating of properties and indicators of fuel poverty. It is proposed that all of the
information gathered from the National Indicator 187 surveys (Section 6.2) be inputted
onto the database and over time to input data collected from other properties in the
district from the targeted surveys undertaken.
It is proposed to target the Stalham area initially, where 13% of all households in fuel
poverty in the district live. Initially lower value properties will be targeted (council tax
bands A and B) where the owner/s are receiving a means tested benefit. Only owner
occupiers will be targeted as tenants are generally not able to claim any grants available
and fuel poverty is thought to be more prevalent in the private sector. A letter will be
sent to target householders advising them of the Council’s wish to survey properties and
to give advice on energy efficiency and reducing fuel costs. Householders will be asked
to contact the Council if they wish to take part and an appointment to visit these
households will be made. The Town Council and Area Partnership will also be written to
informing them of the project and asking if they know any vulnerable individuals.
The home visit will first involve surveying the property and completing a questionnaire
and then providing general advice to the householder on energy efficiency and reducing
fuel costs (care will be taken not to make the householder feel vulnerable and where
possible for the householder to escort officers around their home). The householder will
be asked if they would be happy for a follow up visit to offer more specific advice if
appropriate. Back at the office the software enables a report to be produced which
provides advice on physical interventions that can be made to improve a property’s SAP
rating. A search of the ESTs grant database can also be made for available grants. A
return visit will then be made if appropriate to give specific advice about the
interventions and any grants available for this work e.g. Warm Front. In some cases it
may be necessary to provide further support to vulnerable households during the grant
claiming process, or refer them to another agency that can provide this support.
It is proposed that the initial letter is sent to 100 households and that only two officers
(one Technical Officer (Housing) and one from the Sustainability Team) undertake the
survey work initially to monitor the level of response and trial the approach to be taken.
Each officer will visit an individual home, but these will be in the same area and on the
same day. This work can commence in March 2011. Further letters can be sent as
necessary to provide a constant work stream for the officers involved. Once the initial
work has been undertaken the number of officers will be increased to two Technical
Officers (Housing), two Sustainability Officers and from July a student Environmental
Health Officer may also be able to assist with visits.
It is also considered that other officers in the Private Sector Housing Team could
complete survey forms in agreement with the householder when undertaking visits in
relation to other work streams including Disabled Facilities Grants and Housing Health
and Safety Rating System assessments. A further visit could be made to provide the
energy efficiency advice and advice on reducing fuel costs once the survey form has
been input and the advice report generated.
It is considered that the initial visit and survey would take an hour to complete and
assuming there are few abortive visits that an officer could complete 5 surveys per day.
The time needed to generating the report and research available grants depend on the
type of property but could take between 2 and 5 hours. The follow up visit, if
required,would also take about an hour, and would be conducted in the same area on
the same day to maximise efficiency.
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2 March 2011
Sustainability Officers will require minimal training on completing the survey
questionnaire (from Technical Officer) and a package of advice will need to be produced
and training given to all officers to ensure that the appropriate advice is delivered to
householders. It is considered that this can principally be done in house through officer
led research and dissemination, bringing in external officers e.g. Warm Front
Partnership Development Officer if required.
All Council staff will need to be aware of the initiative and ensure that where a
householder who receives a letter does not want to be visited that this is communicated
to the team coordinating the visits. They may also be called upon to verify that the
visiting officers are bona fide.
All visiting officers will need to ensure that they have the necessary identification and
that the Police are advised of the survey work being undertaken.
The results of the project will be reported back to Overview and Scrutiny in October.
This will enable the success of the approach to be evaluated and any blockages /
issues to success be raised. These are likely to focus on interventions for which there
is currently no grant support.
In addition to this, the feasibility of setting up a referrals network for health workers will
be explored through the proposed new North Norfolk Health Forum. Training for health
professionals, benefits officers and other agencies/officers visiting private homes on
how to recognise fuel poverty and who to contact if they are concerned about a
particular household would be very valuable.
8. Implications
8.1 Financial
The proposed project will use existing officer time. At present there are no capital costs
associated with the project as officers will be collecting information, providing advice
and signposting residents to other grants and offers available.
8.2 Risks to the Council
There are no risks to the Council arising from the project.
8.3 Sustainability
The project will contribute towards the Council’s corporate aim of becoming an
environmentally sustainable council. It also contributes towards the Council’s
Environmental Policy and Environmental Sustainability Strategy.
8.4 Equality and diversity
NNDC could be challenged as to why we are initially only operating the project in certain
geographical areas of the district. The information in the Private stock condition survey
justifies why we have taken an area based approach, and these types of approach are
common to fuel poverty projects across the country.
9. Conclusions
The extent of fuel poverty in the District depends on a number of variables and is
difficult to measure. However two areas appear to consistently appear in predictions of
areas with the highest likely incidence of fuel poverty; Stalham and
Cromer/Sheringham. A joint Strategy Housing/Sustainability Team fuel poverty project
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2 March 2011
is proposed, initially starting in Stalham. Officers will conduct home visits to obtain
information about the property for the Council’s database and will offer energy efficiency
advice and signposting to national grants and discount schemes. This should reduce
the extent of fuel poverty and CO2 emissions from the District and improve the health of
residents of these properties.
10. Recommendations
Members approve the commencement of the pilot project outlined in section 7.
A progress report is brought back to Overview and Scrutiny in October 2011.