NEA: You will pay more - that’s a dead cert

The UK’s leading fuel poverty charity, National Energy Action (NEA), is urging the Government to come clean about the amount of public money the Government is spending on energy efficiency measures for low-income households and who is footing the bill.

The CERT (Carbon Emissions Reduction Target) scheme, launched today, doubles previous obligations on energy companies to enable people to make their homes more energy efficient and reduce household emissions with a total investment estimated at around £1 billion a year for three years. But who is footing this bill?

The implication is that the Government has increased public funding this year for insulation measures for low income households. But public money for the government’s energy efficiency programme, Warm Front, which provides grants for heating and insulation for people in receipt of benefits, has actually been cut by 25%.

The CERT funding comes from money raised by adding an additional cost to consumers’ fuel bills. Under CERT, energy companies have been forced to supply more insulation measures this year and they have funded this by adding on average £35 to every household’s fuel bills.

Chief Executive of NEA, Jenny Saunders said: “The Government must be upfront about who is really footing the bill for increases in energy efficiency measures this year – as it is the consumer who will be facing a £105 addition to their fuel bill over the next three years to help meet carbon saving targets.

“Under the new CERT scheme, the average household now pays £35 a year towards energy efficiency measures, up from £16 last year. Whether you are rich or poor, this is the sum that is added to your fuel costs but not everyone will get a share of the energy saving measures on offer as a result.

“While it is right and proper that more money is made available for insulation, the country’s poorest should not be paying for this scheme. CERT is a step in the wrong direction in terms of fairness for low-income households and public expenditure would be a more equitable way forward. While poorer families are forced to pay almost twice as much for the scheme this year, the proportion of energy efficiency measures available to them has actually gone down to less than 40% now.

“We now have a situation where the poor not only pay for their own insulation, but are subsidizing the costs of their wealthier neighbours. This Government and Prime Minister have pledged to protect vulnerable consumers and they should reinstate the budget for the energy efficiency scheme, Warm Front, which was cut by nearly 25% in real terms in 2008-2011, compared with 2007-08. Warm Front is a much more progressive than CERT as it is paid for by direct taxation and targeted only at those most in need.”


End

Notes

1. NEA is the leading fuel poverty charity campaigning for affordable warmth in the homes of vulnerable people. Visit www.nea.org.uk

2. Fuel poverty is defined as the need to spend over 10% of household income on fuel costs to maintain adequate warmth for health and comfort.

3. BERR estimates that for every 1 per cent rise in energy prices, an extra 40,000 households become fuel poor.


For more information contact David Bootle NEA press officer on 0191 2615677 or 07984993579

David Bootle
NEA Press Officer
St Andrew's House
90-92 Pilgrim St
Newcastle
NE1 6SG

Tel: 0191 2615677
Mobile: 07984993579

For more information on NEA, please visit our website at www.nea.org.uk

NEA: the national energy action charity
Campaigning for increased investment in energy efficiency to tackle fuel poverty in poor and vulnerable households.