BILL'S BENEFITS BLUNTED BY BARNETT - WELSH LIB DEMS

9.00.00am GMT Fri 20th Mar 2009

The Welsh Liberal Democrats have today outlined their backing for the Fuel Poverty Bill, but have warned that Wales would not see the full benefits of the Bill if it is passed because of the Barnett Formula.

The Bill will provide for a massive 'fuel poverty-proofing' of the existing housing stock in England to bring older homes up to current energy efficiency standards, and will also introduce social tariffs to reduce the energy bills of the most vulnerable groups. Any new money for energy efficiency measures will mean that Wales will get a corresponding share decided on the basis of the Barnett Formula, which is based on the population of Wales relative to England.

However, as the Welsh housing stock would take more money per head to bring up to standard, and with higher levels of fuel poverty in Wales, any extra money arising from the Barnett Formula would fall short of the need in Wales.

The most recent figures available suggest that fuel poverty levels in Wales are almost double that in England, in 2006 11.5% of households in England were fuel poor, while in Wales this figure was 19.5%. Due to the rise in fuel costs in the last year, National Energy Action Cymru has estimated that 340,000 Welsh households are now in fuel poverty, around 1 in 3. Home energy efficiency figures show that 26.7% of homes in England have loft insulation of less than 100mm, compared to a figure of 33.8% in Wales.

On Monday the Welsh Assembly Government launched the consultation on the National Energy Efficiency and Savings Plan which will review the Home Energy Efficiency Scheme (HEES) amongst other fuel poverty policies. Since HEES began in 2000 over 200,000 energy efficiency measures have been installed in Wales. However the scheme has been less effective at targeting the fuel poor - when the scheme was reviewed in 2005, it was estimated that only 29% of householders receiving HEES grants were likely to be in fuel poverty.

Commenting, Liberal Democrat Shadow Secretary of State for Wales, Roger Williams said:

"This Bill is extremely important, as it lays out some excellent ideas that can provide relief from fuel poverty and make homes greener, but Wales will not see the full benefit as any new funding will be restricted by the Barnett Formula.

"Wales has higher levels of fuel poverty, and a poorer housing stock, so a crude population-based formula means that if new funding comes forward, the Assembly simply won't get the cash to do the work.

"We have been highlighting the unfairness caused to Wales by the Barnett Formula for years, and this is yet another example where the needs of Wales will not be met by the Barnett Formula."

Montgomeryshire MP Lembit Öpik added:

"Many vulnerable people have been hit hard by fuel prices this winter, and insulation and other energy-saving measures are a cost-effective solution that will provide long-term benefits, both to people's pockets and to the environment.

"The Government is also keen to stimulate the economy through capital projects, and these measures fit the bill in that regard too, so I hope the Government will give their backing to the Bill.

"I will be giving my support to the Bill on Friday, as it contains many excellent measures that will, directly or indirectly, help reduce fuel poverty in Wales. However, I know that this Bill could do even more if the Barnett Formula was replaced with a needs-based formula that recognised the particular needs of Wales."

ENDS

Notes:

Number of households with loft insulation of less than 100mm thickness (Source: Energy Savings Trust)

Location

No. of homes in location

No. of homes with data

No. of homes matching criteria

Percentage

Gwynedd

57710

3490

1529

43.81%

Merthyr Tydfil

25653

2297

896

39.01%

Blaenau Gwent

31578

2649

1016

38.35%

Neath Port Talbot

62555

3101

1177

37.96%

Ceredigion

32777

3693

1350

36.56%

Swansea

104575

10326

3730

36.12%

Powys

61097

5074

1816

35.79%

Newport

60807

9299

3325

35.76%

Vale of Glamorgan

54309

10772

3832

35.57%

Denbighshire

42198

3807

1350

35.46%

Conwy

53187

4117

1427

34.66%

Carmarthenshire

80849

4971

1703

34.26%

Pembrokeshire

56959

4166

1408

33.80%

Caerphilly

75707

4667

1565

33.53%

Cardiff

138473

7624

2540

33.32%

Rhondda, Cynon, Taff

104326

16058

5292

32.96%

Monmouthshire

38619

8295

2706

32.62%

Torfaen

39682

4049

1315

32.48%

Anglesey

32886

3368

1088

32.30%

Wrexham

56604

2984

915

30.66%

Flintshire

64256

6876

1983

28.84%

Bridgend

59388

9927

2457

24.75%

TOTALS

1334195

131610

44420

33.75%