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Fuel help 'not effective enough' Fuel help 'not effective enough'
(about 9 hours later)
Help for people struggling with their energy bills must be better targeted to prevent more people slipping into fuel poverty, a watchdog's report says. Many vulnerable households do not qualify for government help with energy bills, a watchdog's report says.
The National Audit Office commended the government's warm front scheme, a key plank of its fuel poverty strategy, for being popular and value for money. The National Audit Office said more than half of homes in "fuel poverty", spending 10% of income on fuel, are not eligible for the Warm Front scheme.
But it found many people who needed help were not receiving it, while some who did not were getting assistance. Help the Aged said the scheme was "underfunded and poorly targeted".
The government said it was examining the issue of "improved targeting". Energy Minister Joan Ruddock said there was a "strong case" for raising grants and a review of the scheme was looking at ways to improve "targeting".
Campaigners said the scheme was under-funded and "unfit for purpose". In its report the National Audit Office (NAO) commended the Warm Front scheme, a key plank of the government's fuel poverty strategy, for being popular and value for money.
'Scratching the surface''Scratching the surface'
Reviewing the scheme, which supplies grants for home insulation, the NAO said about 635,000 households had benefited from it between June 2005 and March 2008.Reviewing the scheme, which supplies grants for home insulation, the NAO said about 635,000 households had benefited from it between June 2005 and March 2008.
These households had saved an estimated £240m in reduced bills over the period as a result, while 86% of those participating were happy with the work done, it said. They had saved an estimated £240m in reduced bills over the period, while 86% were happy with the work done, it said.
However, charities said the scheme was only "scratching the surface" since more than three million households are living in fuel poverty - defined as spending 10% of their annual income on fuel costs. There is a strong case for raising the current grant levels, which I am urgently investigating Joan Ruddock, energy minister But the NAO estimates more than three million households were in fuel poverty in England in 2007 - a rise of 1.6 million since 2005.
The NAO found the scheme, eligibility for which is based on the amount and type of benefits households get, was not reaching many of those most in need. There is a strong case for raising the current grant levels, which I am urgently investigating Joan Ruddock, energy minister
Research in 2006 showed that 57% of fuel-poor households were not eligible. And its report found the scheme, eligibility for which is based on the amount and type of benefits households get, was not reaching many of those most in need.
Research in 2006 showed that 57% of fuel-poor households were not eligible because they were not claiming the relevant benefits.
Meanwhile nearly 75% of homes that would qualify, were not necessarily in fuel poverty, it said.
NAO head Tim Burr said: "The Warm Front Scheme has helped to alleviate fuel poverty in a large number of households.
"But despite changes intended to improve the targeting of the scheme, over half of vulnerable families in fuel poverty still do not qualify, while many households unlikely to be fuel poor are able to claim a grant.
"The Department of Energy and Climate Change needs to improve the way it assesses eligibility for the scheme, so that the most vulnerable households are the first to receive the assistance they need."
Vulnerable 'left behind'
The NAO also expressed concerns that the value of grants had not risen since 2005 and that a quarter of applicants were having to pay for part of the work out of their own pockets because the grants did not cover the full costs involved.The NAO also expressed concerns that the value of grants had not risen since 2005 and that a quarter of applicants were having to pay for part of the work out of their own pockets because the grants did not cover the full costs involved.
"The warm front scheme has helped to alleviate fuel poverty in a large number of households," said Tim Burr, head of the National Audit Office.
"But the Department of Energy and Climate Change needs to improve the way it assesses eligibility for the scheme so that the most vulnerable households are the first to receive the assistance they need."
Ministers said the scheme's budget had increased by £174m since September, but acknowledged improvements could be made.Ministers said the scheme's budget had increased by £174m since September, but acknowledged improvements could be made.
"There is a strong case for raising the current grant levels, which I am urgently investigating," said energy minister Joan Ruddock."There is a strong case for raising the current grant levels, which I am urgently investigating," said energy minister Joan Ruddock.
"We are also looking at the issue of improved targeting as part of the current review.""We are also looking at the issue of improved targeting as part of the current review."
Campaigners said the harsh winter made the scheme's shortcomings even more damaging. But charities said the scheme was only "scratching the surface" and said the harsh winter had made its shortcomings more damaging.
Help The Aged's Mervyn Kohler said the report provided "stark and unequivocal evidence that the government's warm front scheme is grossly underfunded, poorly targeted and unfit for purpose in its current form".Help The Aged's Mervyn Kohler said the report provided "stark and unequivocal evidence that the government's warm front scheme is grossly underfunded, poorly targeted and unfit for purpose in its current form".
For the Conservatives, Greg Clark said Warm Front funding would be cut in 2010/11 which would leave more vulnerable households without insulation.
"Warm Front is leaving millions of the most vulnerable people behind.
"The government should now follow the lead the Conservatives have shown and adopt our plan to give a new entitlement for every household in Britain to have up to £6,500 worth of insulation fitted in their house, at no upfront cost, resulting in instant reductions in energy bills and reductions in fuel poverty."