Affordable Warmth Strategy

1.WHY 'AFFORDABLE WARMTH'

We view our Affordable Warmth Strategy as a necessary solution to the problem of fuel poverty. In this way we can consider 3 inter-linked measures:

more efficient heating;
improved insulation;
income maximisation such as increasing benefit

Our Strategy aims to ensure that all residents within Hafod Housing Association homes can achieve and maintain healthy and comfortable temperatures at affordable costs.

The case for affordable warmth has been recognised on a national policy level with the publication of the Government's UK Fuel Poverty strategy that seeks to end fuel poverty for 'vulnerable households' by 2010, as well as on a regional level with the publication of the Welsh Assembly Government's Warm Homes and Energy Conservation Act 2000. This Act sets a target date of 2015 for eliminating fuel poverty in Wales. More recently the Housing Act 2004 has set a 20% target for improvement in energy efficiency from 2000 levels by 2010. We are committed to meeting these targets.

Our Affordable Warmth Strategy forms an intrinsic part of our work to achieve the goals of reducing fuel poverty and improving the health of our residents.

2. FUEL POVERTY

What is Fuel Poverty?

Fuel poverty occurs when a household is unable to afford adequate warmth due to the combined effects of low household income, inadequate and / or expensive forms of heating and inefficient thermal characteristics of the home.

The Causes of Fuel Poverty

There are four main causes:

Low income
Energy inefficient homes (difficult to heat) properties
Expensive to run heating systems i.e. use expensive fuel or is inefficient.
Ill health leading to an inability to use heating systems correctly.

The accepted definition of fuel poverty is a household whose energy costs are more than 10% of its income. It affects 30% of households in the UK, mainly older people, lone parents, the un-employed, the sick and disabled. This is because these groups often have to heat their homes for longer periods of time than those who go out to work and may also need to heat their homes to higher temperatures to be comfortable. They are also more likely to pay for their fuel by prepayment meters. Tariffs for pre payment customers are higher than those for credit/direct debit customers, further compounding this disadvantage. As far as Hafod tenants are concerned, 29.5% are fuel poor, of which 96% have annual family incomes of less than £10,000

Tenant Group (Household Income)	% of Hafod Tenants	% in fuel poverty
£5,000	23%	66%
£5,000 - £7,500	30%	33%
£7,5000 - £10,000	18%	20%
£10,000 - £15,000	17%	7%
>£15,000	12%	0%
TOTAL	100%	29.6% overall

The principal effects of fuel poverty are health related. Ill health can be increased by cold homes and badly ventilated homes can also promote the growth mould and house dust mites. Fuel poverty can also exacerbate the social isolation felt by older householders and diminish their quality of life. They cannot afford to go out and are reluctant to invite friends into their cold homes.

3. SETTING OBJECTIVES

We aim to fulfil our Strategy through the following key objectives.

Objective 1- Raising the profile of energy awareness among staff and other stakeholders and co-ordinate an effective strategy.
Objective 2- Ensuring that energy awareness and advice reaches the most vulnerable residents, encouraging benefit uptake and maximising household income.
Objective 3- Implementing the Affordable Warmth Strategy within our own housing stock through the effective use of energy efficient products and specifications, and regularly reviewing and updating these.
Objective 4- Taking advantage of the competitive fuel supply market on behalf of low income consumers, ensuring residents have access to energy advice and efficient domestic appliances

4.TACKLING FUEL POVERTY - SETTING TARGETS

We have set the following targets from our objectives:

Energy Awareness amongst staff and stakeholders

Publishing and publicising the Strategy to keypartners
Providing relevant training to technical and front-line staff
Regularly considering energy issues at Management and Team meetings
Maintaining a dialogue with local authorities and specialist agencies
Presenting an annual Board report on delivered Energy initiatives

Advice and support to tenants

Facilitating the provision of timely advice on saving energy to residents
Identifying vulnerable groups who require specific advice, sign-posting these to specialist agencies
Maximising tenants' entitlement to benefits

Energy Efficiency Improvements

Updating and regularly reviewing our property investment programmes
Achieving the relevant SAP rating for individual properties through effective energy programmes.
Reviewing the specifications for the repair and renewal of building components and services to achieve energy efficiency gains wherever practicable and cost-effective
Ensuring all properties are insulated to the prevailing standards
Applying practicable and cost-effective renewable energy measures
Maximising internal and external funding sources to deliver energy efficiency improvements that will reduce tenants' fuel bills

Domestic Energy Costs

Working with partners to give tenants access to the most competitive energy suppliers
Raising awareness of the running costs of tenant appliances and encouraging the purchase more efficient appliances

5. WHAT DO WE INTEND TO ACHIEVE?

Improve the social aspects of our residents' lives

By freeing up money that was previously spent on fuel bills we hope that our residents will be able to spend more money on the social aspects of their lives that will help to reduce social isolation and exclusion. This is particularly important for children and the elderly.

Improve the health of our residents.

Properly heated homes will help prevent damp and condensation, with attendant health gains such as eased respiratory conditions. We have noticed a significant drop in the number of reported repairs related to damp and condensation since starting our energy programme. We also recognise that the elderly, immobile and young people may need higher levels of heating than others.

Reduce the impact of heating homes on the environment.

By providing our residents with the opportunity to achieve affordable warmth through effective energy efficiency measures we will also contribute to reducing Carbon Dioxide (CO₂) emissions in line with the Government target reduction of 20% by 2010.

Assist our residents in improving their economic stability.

By reducing the amount of money our residents are spending on fuel and making them aware of any benefits they may be eligible for, we hope to help them avoid building up debt, not only with the fuel suppliers but other organisations that they may not be able to pay due to high fuel bills.

Maintain the standard of our properties

Condensation and damp that are often present in poorly heated and insulated homes can not only damage resident's furnishings but can lead to rotting windows and structural decay. This will in turn require more money to be invested in the property in order to repair the damage. Preventing this will not only help our residents but they are likely to stay longer in their homes resulting in a reduction in the number of void properties.

Deliver Improvements

We will produce an annual programme of measures and initiatives and report on what we have achieved

6.WHAT SAVINGS CAN ENERGY EFFICIENCY YIELD?

Energy advice can save a household around £50 a year through simple low and no cost changes. These can help tenants reduce their costs for electricity and gas by becoming more economical with the energy that they do use.

Installing energy efficient measures such as improved insulation, higher efficiency boilers and energy efficient appliances can save the average household £250 a year.

Insulation

Good insulation can make as much difference as a good gas central heating system. The table shows that savings can be made from different insulation measures in an average three bedroom semi-detached house.

Insulation Measure	Annual Saving	Initial Cost	Pay Back in Years
Hot Water Tank	£12	£10	0.8
Cavity Wall	£75	£170	2.3
Loft	£45	£150	3.3
Draught Proofing	£15	£75	5

Heating

An efficient main gas central heating system is currently the least costly to run. Using an electric storage system rather than gas means spending 40% more on total energy use to maintain the same level of comfort. Replacing a 15-year-old boiler with a new gas boiler can save 32% on fuel bills if a high efficiency-condensing boiler is installed. We have already started replacing old inefficient boilers to comply with government legislation coming into effect in the spring of 2005.

Heating Measure	Annual Savings	Initial Costs	Pay Back
Condensing Boiler	£50-£60	£150 More than Conventional Boiler	4-5 years
Room Thermostat	£10-15	£110-£140	7-14 years
Thermostatic Radiator Valves	£7-£15	£75-£100	5-14 years