Government changes rules for fuel poverty aid

The department of energy and climate change (Decc) said new regulations, which will come into force on 12 September, had been laid in Parliament yesterday. The changes aim to create parity between the eligibility criteria of the government-funded Warm Front scheme and the new Energy Company Obligation (Eco) scheme that will replace it, paid for by energy companies, and therefore by consumers via bills.

Decc said that those living in poorly insulated properties or who do not have a working heating system will continue to be targeted. The new rules will also remove some of the barriers that have created a significant underspend in the scheme. Less than two thirds of the £145 million budget for 2011-12 was spent.

As of next month, the qualifying SAP (Standard Assessment Procedure) threshold for the property will be increased from 55 to 63. That will mean more properties are eligible and remove the rule that essentially stopped households with an installed heating system, even if it was not working, from claiming grants. Up to £3,500 per household is available, or up to £6,000 if the property is not connected to the gas network.

The Warm Front scheme is set to close to applications at the end of this year. It is not yet clear whether the underspend in the final level of the scheme matches that of the £50.6m unspent last financial year.

Fuel poverty charity National Energy Action last week urged households to apply for the last of the grants. It is likely that work carried out under the scheme will continue until the end of the financial year in April 2013. Today, National Energy Action chief policy analyst Ron Campbell welcomed the government’s eligibility decision:

“At a time when there are 4 million fuel-poor households in England any repetition of last year’s underspend would be incomprehensible and extremely disappointing. The revised qualifying benefits will enable more fuel-poor households to access Warm Front, and synchronising the eligibility criteria with those for the Affordable Warmth element of the Energy Company Obligation does provide greater clarity and consistency.”