3. National fuel poverty and energy efficiency legislation

3. National Fuel Poverty and Energy Efficiency Legislation

A number of policies support both fuel poverty and energy efficiency work in parallel. Whilst targets for carbon reduction and fuel poverty remain separate, due to the opportunities available, it is a logical step for local authorities to address both energy efficiency and fuel poverty in tandem. This next section will provide a brief overview of the national legislation on carbon reduction, energy conservation and fuel poverty that have been introduced as well as the associated policies and targets.

3.1 Climate Change and Carbon Reduction

The requirement to improve the energy efficiency of homes stems from the legal requirements to reduce carbon dioxide (CO2) emissions set out in the Climate Change Act 2008 and the government’s Carbon Plan, published in 2011. The Carbon Plan set the following targets in relation to housing:

On 27 June 2019 the UK government amended the Climate Change Act and set out a new legally binding target toachieve ‘net zero’ greenhouse gas emissions across the UK economy by 2050. This was previously a target of 80% reduction from the 1990 levels.
To insulate all cavities and lofts, where practical, by 2020;
By 2030, between 1 – 3.7m additional solid wall installations and between 1.9 - 7.2m other energy efficiency installations;
By 2030, 1.6m - 8.6m building level low carbon heat installations such as heat pumps.

The government has set five-yearly carbon budgets which currently run until 2032. They restrict the amount of greenhouse gas the UK can legally emit in a five-year period. The UK is currently in the third carbon budget period (2018 to 2022). The first carbon budget (2008 to 2012) was met, as was the second (2013 to 2017), and the UK is currently on track to outperform on the third (2018 to 2022).

However, it is not on track to meet the fourth (2023 to 2027), and more challenging measures will be needed to meet this target and the 100% target for 2050.

3.2 Home Energy Conservation Act

The Home Energy Conservation Act (HECA) 1995 recognises local authorities’ ability to use their position to significantly improve the energy efficiency of all the residential accommodation in their areas. The Department for Energy and Climate Change (DECC) requires HECA reports to be produced biennially by English Local Authorities.

The current HECA report covers the period 2019-2021 and outlines the Council’s ambitions for energy conservation measures, based on what will be practicable, cost-effective and likely to result in significant improvement in the energy efficiency of residential accommodation in the Arun district. HECA reports are published on the Council’s website and can be found using the shortcut; www.arun.gov.uk/energy. This report will be updated as required throughout the term of this strategy.

3.3 Warm Homes & Energy Conservation Act

The Warm Homes and Energy Conservation Act 2000 placed a duty on Government to have a strategy for tackling fuel poverty. The Fuel Poverty (England) Regulations 2014 were then produced. The Regulations created a fuel poverty target to ensure that as many fuel poor homes as is reasonably practicable achieve a minimum energy efficiency standard of C, by 2030.

There were interim targets of:

As many fuel poor homes in England as is reasonably practicable to B and E by 2020
As many fuel poor homes in England as is reasonably practicable to B and D by 2025

3.4 Public Health - cold weather plan

The Cold Weather Plan for England was first published in November 2011. Revised each year, the plan builds on the experience from previous years of developing and improving the ability of the NHS and its partners to deal with significant periods of cold and wintery weather. It aims to prepare for, alert people to, and prevent the major avoidable effects on health during periods of severe cold in England.

Arun District Council support this through Arun Wellbeing and the Home Energy Visitor Team. Arun District Council also help to produce a ‘Stay Well this Winter’ booklet.

3.5 Green Deal Finance Company

The Green Deal was a UK government policy initiative which gave homeowners, landlords and tenants the opportunity to pay for energy efficient home improvements through the savings on their energy bills. It came to an end in 2015 but many private companies then provided loans until 2017 when the new Green Deal Finance Company was established. This company is financially supported by private investors but is endorsed by the Government. The principle of these grants is the same; Green Deal finance covers the upfront cost which is paid back over a period of time through the resulting savings on the occupant’s energy bill. The loan is attached to the property and is therefore the responsibility of the new owner or tenant if the occupier moves to a new house. The loan can, however, be paid off early.

3.6 Energy Company Obligation (ECO)

The Energy Company Obligation (ECO) is a government energy efficiency scheme to help reduce carbon emissions and tackle fuel poverty. In October 2018 ECO3 was launched which will run from Autumn 2018 until March 2022.

The previous ECO covered properties classed as ‘hard to treat’ due to their construction, along with supporting the fuel poor residents. The new ECO3 is focused almost completely on supporting low income, vulnerable and fuel poor households.

The new ECO3 scheme allows for 25% of the funding to be delivered through Local Authority Flexible Eligibility (LA Flex). Arun District Council has worked collaboratively with the other district and boroughs in West Sussex to produce our criteria for LA Flex. This is published on the Arun District Council website. The criteria were devised using the BEIS guidance and therefore focuses on supporting fuel poor households.