Sheffield Affordable Warmth Programme

Sheffield Affordable Warmth Programme

1.0Purpose of report

1.1Across the whole of society, environmental issues are assuming increasing prominence. The impact of the existing and new housing stock on the environment is significant and provision of affordable warmth is crucial to tackle fuel poverty. Both the Planning and Housing Strategic frameworks are being updated to better respond to environmental issues and limit CO2 emissions from housing.

1.2Improving the environmental and energy performance of homes across the city is a key element in the council’s contribution to an environmentally sustainable future for the City. The impact of providing heat and energy to the city’s 232,000 homes is a significant element of the City’s carbon footprint and the need to provide affordable warmth to the most vulnerable of people throughout the city has been a long standing aim and remains a key challenge. Sheffield has 28,000 private sector homes that do not meet the decency standard, approximately 16,000 of which are occupied by vulnerable households. Although energy efficiency i.e. the means to heat a home affordably and to insulate it effectively is a principle pillar of the decency standard, we know through research that many of the owners of these properties do not have the income to finance the necessary improvements. Consequently large numbers of especially older people struggle to meet the cost of heating during the winter months and each year there are more people who die during the winter than the summer. Nationally, there were around 24,000 excess winter deaths during 2006/07. Tackling fuel poverty reduces the numbers of excess winter deaths, but in addition can be shown to reduce a range of other health problems such as incidences of strokes and cardio-vascular problems.

1.3Although in some properties it is not possible to achieve affordable warmth without more expensive measures, in many homes it is possible to make big improvements in energy efficiency and reduce bills by straightforward upgrades to insulation standards, more efficient boilers and better heating controls.

2.0Council housing

2.1In 2006 an assessment of the Council’s carbon footprint identified that Council housing accounted for 68% of its overall CO2 emissions. In recent years we have made significant progress in driving up the energy efficiency of our Council homes as part off a strategy to tackle fuel poverty, investing over £50m between 2000-2006, reducing energy bills by an estimated £11m and improving NHER ratings on average from 4.3 to 7.2. The Decent Homes programme will complete our investment in cavity and loft insulation, and combined with heating and double-glazing measures we estimate we will reduce Co2 emissions by 39% through improvements in energy efficiency by 2011.

3.0Private sector housing

3.1Over the last few years a range of grants and discounted energy efficiency schemes have been developed and now operate across the city. These include:-

• Warm Front – a scheme that provides insulation and central heating for low income households. This government funded scheme is open to those in receipt of certain means tested benefits.

• Save N Warm – a locally run scheme by the four South Yorkshire Councils offering free insulation for ‘priority householders’. The scheme, which is slightly more flexible than Warm Front, also offers insulation through a discounted scheme for others. (currently £149 flat rate). Save N Warm is funded by one of the energy suppliers, currently NPower and administered by the joint Energy Advice Centre in Doncaster.

• SYHARP Grant – a scheme that provides central heating for low income households with old inefficient boilers and provides “Warm Front” top up contributions. This scheme is slightly more flexible than the Warm Front scheme being funded by resources through the Regional Housing Board, and administered by the Energy Advice Centre.

• Energy Company schemes – funded by government resources, the schemes are similar to our Save N Warm initiative although there is more variation in price and frequency of the offer. The schemes tend to be ‘come and go’ dependent on the level of funding available.

3.2Despite this range of grants and intensive marketing through mail shots and roadshows (for example the Council post out to every eligible household that receives Council Tax benefit and run over 20 community roadshows each year) there are always lots of households who do not take up grants or discounted schemes.

3.3Because of this, a number of local authorities and other organisations have in addition launched targeted campaigns in particular areas. These aim to:

• Simplify access to grants through a ‘one-stop shop’ approach.
• Provide dedicated assistance to those vulnerable or hard to reach households who need a helping hand or reassurance
• Raise demand through large-scale marketing.
• The better ones have also added other features such as benefit take up assistance, health and fire safety promotions etc.

These are often referred to as ‘Warm Zones’ though this is actually a brand created by the National Energy Action (NEA) charity.

These targeted campaigns build on existing local strengths and community networks and tailor the structure of the initiative to maximise the potential external funding, particularly those from Energy Supply Companies. By topping this up with local capital it is possible to achieve a free insulation offer for the majority of households rather than simply promoting existing grants and discounts.

3.4Government has recognised the effectiveness of the targeted campaign approach and provided one-off Community Energy Efficiency Fund (CEEF) resources in the 2007/8 budget to boost this type of scheme. The Council has been successful in securing some of this resource. The funding is for development including business planning, establishing delivery capacity, marketing etc but does not fund actual energy efficiency measures.

4.0The Sheffield Affordable Warmth Programme

4.1The Sheffield proposal for which CEEF set up funding has been secured is to establish a large and high profile city-wide initiative. Drawing on the best practice from elsewhere, it will operate through a phased programme of street by street promotion to maximise potential take up. The economies of scale this brings will allow a free package to be offered to the majority of households included in this street by street promotion.

4.2The scheme will require careful branding to ensure distinction from the variety of other products available. It will operate as one brand with a number of products behind it, thereby simplifying the access process for householders by providing a single point of contact that will act on their behalf to identify and organise delivery of the most appropriate product or products.

4.3Subject to a continuation of funding (available currently in 3 year blocks) the aim is to eventually cover the whole of Sheffield. However to ensure the highest profile and maximise take up by the most vulnerable households, existing grants and discounted work will continue to be heavily marketed across the city to all households outside of the initial promotion areas.

4.4Early work is focussing on identifying the areas with the highest levels of private sector households at risk of fuel poverty and on putting together a funding package that draws in resources from the energy supply companies (referred to as CERT funding), Warm Front grants, Transfer South Yorkshire and the Neighbourhoods Investment Programme.

4.5 Areas for initial promotion are yet to be finalised, but is proposed the principles for selection focus on a ‘greatest need first’ approach. The Council currently runs a large number of Affordable Warmth roadshows each year and it is also proposed that some priority is given to areas that whilst having above average numbers of vulnerable households have not yet benefited from this kind of event. A full list of the areas likely to be included within the first three year phase of the scheme is attached at appendix 1.

4.6 Negotiations on the funding package have not yet been concluded. However, modelling work carried out to secure the CEEF funding from Government suggests matched funding of £1.5 million of Housing Market Renewal (HMR) funding and £1.5 million of the Council’s own resources over a three year programme would attract external funding from CERT and Warm Front of approximately £7.5 million. It is estimated that this level of funding would be adequate to complete the programme to all the areas listed in appendix 1. If take up in these areas proved to be less than estimated then it would be possible to commence work in other areas within the three years.

4.7To assess the numbers of homes the funding would cover, assumptions have been made on the percentage of properties with/without cavity walls, those requiring loft insulation top ups and those with inadequate heating (for Warm Front grants). Assumptions have also been made on the likely level of take up based on experience from other areas.

4.8 These estimates suggest the initial three year programme would generate the following measures:

• 64,000 homes contacted
• Of these 34,149 households would be elderly, contain young children or a member with a long term illness or disability.
• 15,792 lofts insulated
• 4,704 cavity walls insulated
• 1.440 central heating measures

Detailed monitoring of the CO2 savings that arise from these will be undertaken during the programme. An accurate assessment requires information on property type, before and after changes and the fuel type used.

However, early estimates based on average figures shows these measures would generate CO2 reductions of between 11 and 12 thousand tonnes per annum once installed.

4.9As outlined earlier, the objective would be to maximise take up and to create a momentum that assumes every household contacted would be able to take some measure, or at the least receive energy efficiency advice. Where required, the team established would provide additional assistance to older residents needing for example help to clear a loft space.

4.10Economies of scale by having contractors working in each area means cheaper contract rates, and will enable whole buildings with continuous cavities such as flats and semi-detached homes to be done together.

4.11By working in partnership with other organisations, a further package of help would be offered. This would include benefit take ups, health referrals, fire safety promotions and general advice on energy efficiency.

4.12Although the initial focus would be on the most cost effective measures i.e. cavity and loft insulation, Sheffield has a large percentage of properties with solid walls. Measures to improve energy efficiency are more difficult to achieve with these types of properties. However, the one to one approach may offer the potential to offer discounts on for example external wall insulation, or to offer advice on small-scale renewable energy.

4.13A key element of successful schemes is good communication and marketing. Work with existing community, faith and BME organisations, Area Panels, local schools, GP Surgeries, etc will be important, and the team will draw on examples of best practice achieved elsewhere.

4.14Consideration is being given to the potential for using thermal imaging equipment as both a marketing tool and as an aid to identify building faults that contribute to poor energy efficiency.

4.15Some months ago an estimate was prepared of the potential cost of completing this entire programme across the whole city within three years. At that time the estimate was based on the best information available. This was a crude pro-rata comparison with the costs of the programme being implemented in Kirlklees. Based on this, the costs to the Council were estimated to be £5m per year, a total of £15m, and were regarded as prohibitive. Since then the Council has received the data from our housing market assessment survey. This includes information on numbers of cavity walls compared to solid stone walls and on estimates of loft insulation thicknesses. Together with the modelling tool provided by the CEEF, this information now provides a more refined estimate of the likely cost of completing the programme across the whole city. The revised estimate is that the total cost would be £21m of which the Council would need to fund £7m. It is important to point out that the housing market assessment was based on a small sample and on questionaires completed by householders rather than on property inspections. Consequently the estimated cost can only be treated as indicative.

4.16This revised estimate of city wide costs is significantly lower than the original estimate. However, completion of the whole programme within three years would still require the Council to allocate additional funding of £4m over the next three years and this could not be achieved without a serious detrimental impact on other capital programme commitments. The estimate does provide reassurance that completion of the city wide programme is likely to be achievable within a further 3 year period, subject to external funding continuing to be available.

5.0Financial implications

5.1The costs of developing this initiative during 2007/08, including establishing the delivery vehicle referred to in paragraph 3.4 are being funded with a government Community Energy Efficiency Fund (CEEF) grant of £187,502.

5.2Negotiations on the full implementation of the initiative have not yet been concluded as this is dependent on further analysis and discussions with the main CERT funders. However, modelling work carried out to secure the CEEF funding from the government suggested matched funding of £1.5 million of Housing Market Renewal (HMR) funding and £1.5m from the Council’s own resources over a three year programme would attract external funding from CERT and Warm Front of approximately £7.5 million. The HMR funding is subject to resources being available through the 2008/11 HMR programme

6.0Environmental implications

6.1Improving thermal performance of buildings through added insulation is a key measure to reduce heating losses and carbon emissions. As well as reducing the incidence of fuel poverty, this also helps to reduce impacts on climate change and Sheffield’s carbon footprint.

6.2The impacts from this initiative will be monitored and the results of this will be publicised and included in relevant council reports etc.

6.3As well as these direct savings from better insulation, the Affordable Warmth Programme will also promote ways that households can save energy and/or reduce their impacts on the environment through behavioural and lifestyle changes.

7.0Equalities Implications

7.1The Equalities Impact Assessment has identified that fuel poverty is more prevalent amongst BME households, those with a long term health problem or disability and disproportionately affects older residents. Levels of poverty and low incomes are also greater for women, and in particular the proportion of lone parents households headed by women is much higher.

7.2By targeting the areas that have his initiative will have positive impacts on these groups as tackling fuel poverty has been shown to improve a range of health problems that are exacerbated by poor heating General ‘well-being’ and increases in disposable income through having lower fuel bills are also positive impacts.

7.3To ensure fair access to the scheme, impacts on different groups will be monitored, and the implementation of the initiative will include appropriate training and policies to ensure maximum take up by all households within the targeted areas.

8.0Recommendations

8.1That Cabinet approves the work outlined to launch an ambitious city-wide Affordable Warmth programme, subject to funding being secured from April 2008

8.2The Director of Housing in consultation with the Cabinet Member for Neighbourhoods and Community Care be authorised to implement the scheme and to determine the criteria for assistance and the areas and streets to which it will apply

8.3 The Affordable Warmth Scheme be included in the Assistance Policy of the Private Sector Housing Services Policy and the Director of Housing in consultation with the Cabinet Member for Neighbourhoods and Community Care be authorised to amend the Policy appropriately.

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APPENDIX 1: Potential areas to be considered for inclusion in Phase 1 of the Affordable Warmth Programme

Areas to be targeted for each phase of street by street promotion will be taken primarily from those having high levels of private sector households in fuel poverty. Priority will also given to areas that whilst having above average numbers of vulnerable households have not yet benefited from this kind of promotion.

Although further analysis is being undertaken, the following areas are likely to be included in Phase 1.

High Green / Hackenthorpe
Shiregreen / Woodthorpe
New Parson Cross / Manor
Wincobank / Acres Hill
Brightside / Wybourn
Flower / Park Hill
Stubbin / Brushes / Granville
Firth Park / Arbourthorne
Fir Vale / Norfolk Park
Old Parson Cross / Gleadless Valley
Longley / Birley
Shirecliffe / Base Green
Southey Green / Batemoor / Jordanthorpe
Fox Hill / Hemsworth
Firshill / Lowedges
Woodside / Heeley
Abbeyfield / Sharrow
Burngreave / Highfield
Tinsley / Broomhall
Darnall / Crookesmoor
Housteads / Netherthorpe
Handsworth / Upperthorpe
Woodhouse / Langsett
Halfway / Walkley
Westfield / Woodland View
Waterthorpe / Ecclesfield