Warm homes for winter

Up to 10,000 extra Scottish households will be given free help to cut their energy bills this winter, Nicola Sturgeon said today. The Deputy First Minister has allocated a further £6 million to install vital energy efficiency measures, such as loft and cavity insulation into Scottish homes.

Also, from this week, a Scottish Government cash back voucher scheme will go live benefitting up to 35,000 Scottish households.   This will allow individual householders to apply for £500 vouchers to contribute to the cost of new energy efficiency measures in their properties.

Ms Sturgeon said: “With temperatures dropping and colder weather beginning to bite, households across Scotland will be worrying about their winter energy bills. Solid action is absolutely imperative. That is why we have ploughed an additional £6 million into providing up to 10,000 households with free insulation that will make their homes warmer and cheaper to heat and invested millions into a cash back voucher scheme that is due to go live later this week.

“This is the kind of vital help which can make a real difference to those struggling to make ends meet and demonstrates we will do whatever we can within devolved powers to tackle fuel poverty. Anyone looking for help with their heating bills can contact our Home Energy Scotland Hotline on 0800 512 012 for further assistance.”

The £6 million funding is for the Universal Home Insulation Scheme (UHIS) – an initiative administered by local authorities.

Ms Sturgeon continued: “We all need to work together to tackle fuel poverty. Local authorities have been extremely effective at administering these schemes and I welcome their positive approach. I hope again that they will be able to deliver maximum results with this extra money. But our efforts are being held back by punishing price rises imposed by energy companies.  The UK Government – who has responsibility for this area – is simply not doing enough to regulate the market, and this has to change urgently.

“With winter approaching, we need an end to mixed messages and confusion from Westminster, which frankly has done nothing to inspire confidence among worried householders.”

Chair of the National Insulation Forum (Scotland), Wilson Shaw said: “The National Insulation Association warmly welcomes this announcement -it’s really good news, not only for the thousands of households that will benefit, but also for the industry.

“It will really help insulation firms and their employees in Scotland, giving them greater continuity of work between current programmes coming to an end and the Green Deal and ECO getting going.”

The £6 million will be allocated to the Universal Home Insulation Scheme – an energy efficiency initiative administered by local authorities.  The new funding is due to the success of the Scottish Government’s Energy Assistance Package in attracting energy company obligation funding to Scotland under the Carbon Emissions Reduction Target.

From 1 November, householders across the whole of Scotland will be able to apply for a cashback voucher for up to £500 towards the cost of installing energy efficiency measures which are recommended through an EPC or Green Deal assessment.

Local MP backs action on pre-payment meters

Mark Lazarowicz MP (pictured above) backs action on fuel poverty to help cut bills of pre-payment meter users

With steep rises in energy prices on the way this winter, Mark Lazarowicz MP for Edinburgh North and Leith, is backing a new Bill to make it easier for customers who use pre-payment meters (PPMs) for their gas and electricity to switch suppliers.

Currently, users can switch providing they are not more than £200 in debt – the Bill would raise that to £300 benefitting over 200,000 people.  Mark said:  “This Bill matters because pre-payment meter users pay more for their gas or electricity even though they are over twice as likely to be in fuel poverty than those who pay by direct debit.  People often use PPMs because they are trying to budget responsibly – in some cases precisely because they were in debt – but debts for fuel bills can take a long time to pay off when someone can only afford to pay off a small amount each week. The Government is always urging consumers to switch – this Bill would make it easier for PPM users to do so and they are the people who could benefit most.”

The number of pre-payment users has risen steadily in recent years either as a conscious choice or because suppliers install a meter where someone is in debt to them. Last year over 15% of electricity customers in the UK used PPMs (4.1 million) and 13% of gas customers (2.9 million).

A recently published study by Consumer Focus found that one in six pre-payment users cut off their own energy supply in order to make ends meet – a measure of how carefully they are budgeting.  Traditionally pre-payment users have paid much more for their gas and electricity than those who pay by direct debit or standard credit.

There have been improvements more recently due to action by the regulator, Ofgem, so that the prices PPM users pay better reflect the costs of installing and maintaining the meters, but further action is needed to ensure PPM users get a fair deal.

Six hundred local households to receive fuel support

A project being delivered by Port of Leith Housing Association (PoLHA) and sustainability charity Changeworks will help 600 households in the North Edinburgh area to be affordably warm at home. The Affordable Warmth Project, funded by ScottishPower until 2015, will support householders to address high energy costs, poor levels of energy efficiency and low income – the three root causes of fuel poverty.

The funds will be used to employ a Money Advice Worker from the Citizens Advice Bureau Edinburgh seconded to PoLHA two days a week to work on the project and an Affordable Warmth Advisor employed by Changeworks for two and a half days a week.

Keith Anderson, Chief Executive of PoLHA, said: “This will be a fantastic project and will make a massive difference to the lives of hundreds of our tenants. Fuel poverty is a very serious and damaging issue that can have terrible ramifications for individuals and their families. It’s terrible some people feel they have to choose between basics such as eating and heating but the reality is that this is happening. This project will help people manage their household bills and finances which will relieve this pressure and let them enjoy a happy and warm winter. We are very grateful to both ScottishPower and Changeworks for their support on this project.”

Each year, over the next three years, Changeworks’ Affordable Warmth Advisor will visit 200 tenants in their homes (referred by PoLHA staff) and offer confidential and impartial energy and fuel billing advice. The Money Advice Worker will meet with 160 of these tenants to help with advice on benefits, budgeting and wider debt advice.

Sam Mills, Head of Projects at Changeworks, said: “Almost half of Port of Leith’s tenants struggle in the winter months to afford to heat their homes. With rising energy prices and cold winters there has never been a better time for this Affordable Warmth Project and Changeworks is delighted to be working with Port of Leith Housing Association to support their tenants. Our Affordable Warmth Advisor is happy to visit any tenant struggling with the cost of keeping their home warm and dry or who are worried about their gas and electricity bills. Last year, the vast majority (over 93%) of people we supported were happy with our service and after speaking to us said they understood better how to save money on their energy bills. So please do get in touch.”

For further information call Changeworks on 555 4010 or email ask@changeworks.org.uk