Fuel poverty is defined as when a household needs to spend 10% or more of its income on achieving reasonable heating. Put a low-income tenant base into aged, energy-inefficient homes and fuel poverty is the end result. The problem is estimated to afflict more than 4 million households in Britain, living in both social and private housing, but that figure is steadily reducing as the government's decent homes standard and its fuel poverty strategy make thermal comfort a right rather than a luxury.
Fulfilling the government's objectives poses an immense challenge for local authorities and housing associations. The average UK home scores just 35 on the standard assessment procedure (SAP) energy efficiency measurement system, a paltry figure compared with the 80 to 100 scored by the most energy-efficient homes being developed by housing associations.
In tackling the problem, landlords have first to quantify it and assess the energy efficiency levels of their stock, then find funding for a solution. When the government announced its fuel poverty strategy in February 2001, it pledged to spend £1.5 bn to help address the problem. There are a wealth of grants available, as well as energy company initiatives such as gas supplier Transco's affordable warmth programme to ease the process along. This is not, however, enough to pay for lavish remedies such as solar panels; instead, homes are receiving such basics as cavity wall insulation and a new central heating system. The innovation comes in the different approaches being adopted to produce warmer homes.
The local authority: Portsmouth City Council
A strategic partnering arrangement between Portsmouth city council and contractor United House will involve some 4000 homes being upgraded over four years and could produce savings for the council to reinvest in improving more properties. The council’s housing stock dates from the early to late 20th century and has already been partly upgraded, as a three-year programme of cavity wall and roof insulation is just drawing to a close. The current round of works concentrates on central heating installation, with gas combi-boilers chosen for economic and environmental benefits. Under the partnering arrangement, Portsmouth council and United House have agreed a unit price per property, fixed overheads and profits. Contractor and council share any cost overruns or gains equally. The council intends to use its gains to install more central heating systems. Almost 700 homes have so far been upgraded, with the contractor now installing heating systems at a rate of 20 homes a week. The council is spending £2.2m a year, some £6300 a home. Although the arrangement is still in its early stages, both council and contractor consider it a success for a variety of reasons. “What is particularly important for us is that we have been developing a number of central heating trainees and they are now coming to the end of their training and becoming involved in the partnering project,” says Peter Murray, divisional manager with United House. “Now the project is under way, we can look with our partner to use our expertise. We are having regular continuous improvement meetings,” says Michael Barber, surveyor with the council. This is already producing more innovative heating solutions: later this year a combined heat and power plant will be installed to supply 400 homes. “We’ll be looking for European funding for it and are in discussions to supply a nearby school from the plant,” says Barber. “We’re always looking at how to get more value into the project.”The housing association: The William Sutton Trust
The William Sutton Trust has taken a steady long-term approach to upgrading energy efficiency in its homes and tenants are reaping the benefit as weekly energy costs have been brought down to an average of just over £9. The trust began auditing the energy efficiency of its stock of 15,800 homes, almost 40% of which were built before 1945, seven years ago. It has already beaten the targets it set itself in its 1999-2002 energy efficiency strategy, which included a weekly energy cost target of below £10. Some of the improvement has come from a major programme of double-glazing installation, which is now close to completion. With the 1999-2002 targets passed, the trust has come up with a new energy efficiency strategy which will come into action at the end of this year and extend to 2005. Under this strategy the trust will bring homes up to an average SAP rating of 61, reduce average weekly energy costs below £9, set an SAP rating target of 80 or more for all new dwellings and implement action plans for all homes with an SAP rating of below 50. A programme of cavity wall insulation is planned for 7000 homes. In April this year energy suppliers were given greater responsibility for reducing carbon dioxide levels, and as a result they are now offering a range of grants and incentives to energy savers. The trust has appointed an energy consultant to negotiate the best grant deal for its cavity wall insulation programme and hopes this will cover at least half of the cost. “We do set aside a small amount for insulation, but all the other works we carry out are included under our normal repair budget,” says Fred Rothwell, technical director with the trust. But not all homes are being improved. “We have a few tenants who are happy with their lot and do not want the improvements made,” says Rothwell. When this happens, the trust allows tenants to have their way. “We never force people,” Rothwell says.The ‘Warm Zone’: Sandwell
In Sandwell in the West Midlands, almost half the homes are classed as fuel poor, and the experience of upgrading them will provide lessons for the rest of the country. The area is one of five selected by the government to pilot the “Warm Zone” principle, which brings together government, community and private sector partners, including energy providers. Both private and affordable housing is targeted for improvement, with a range of funding sources being accessed. There are 40,000 social homes, much of it pre-Second World War stock, but the upgrading work being carried out is so far limited to insulation. “We have half a million pounds of local authority funding and that has been matched by our energy company partner Npower, but that doesn’t stretch to central heating,” says Lorraine Simpson, partnership manager with Sandwell Warm Zone. Average spend on upgrading a Sandwell home is £500-600. “As a pilot we are learning as we are going along. We can see that Warm Zones can work, but the key lesson we’ve learned so far is that there is a lack of funding. If somebody gave us the money to deal with fuel poverty we could do so much in Sandwell,” says Simpson. So far 3000 private and social homes have been upgraded, but much remains to be done. Few housing association properties are among the most urgent cases, but for the best of reasons. “Black Country Housing has most of the housing association housing in Sandwell and they think most of their properties are quite energy efficient,” says Simpson.Hot points
- A household is defined as fuel poor if it needs to spend 10% or more of its income on achieving reasonable heating.
- The World Health Organisation defines reasonable heating as 21 Cº in the living room and 18 Cº elsewhere.
- It is estimated that there are more than 4 million households living in fuel poverty in the UK.
- One in five of these is in severe fuel poverty, spending 20% or more of their income on heating.
- 70% of all fuel-poor homes are classed as vulnerable households, with very young or elderly occupants.
- By 2004 it is estimated that more than 1 million UK households will have been improved through fuel poverty programmes.
Source
Housing Today
No comments yet