WIREDGOV

Councils should be allowed to lead energy efficiency schemes to ensure the millions and millions of unspent pounds collected by the Big Six this year, which are supposed to make the homes of vulnerable residents warmer and cheaper to heat, are invested quickly and effectively.

Interim findings from research by the Local Government Association, which represents councils in England and Wales, has found the majority of authorities believe the Green Deal and Energy Company Obligation (ECO) could be improved by making them easier to apply to, reducing paperwork and allowing councils to use information and resources at their disposal to improve delivery.

Last month LGA analysis revealed energy companies have collected some £1 billion this year through the ECO levy on customers' bills, but collectively are 67 per cent behind their target to deliver to poor and vulnerable people, including the elderly and disabled, more energy efficient homes.

Recently, councils are calling for a greater role in ensuring homes are winterproofed and energy efficient quickly and effectively. They have reported tight timescales and onerous reporting restrictions as two examples of challenges they face in the roll-out of schemes such as the ECO.

LGA research shows councils are trusted by residents, which would enable them to play a key role in making the Green Deal and ECO work for the most vulnerable in our communities.

LGA research found:

• 89 per cent of councils said the Energy Company Obligation could be improved to make it easier for councils to increase its uptake, while some 90 per cent felt the same was true of the Green Deal.
• 88 per cent of councils were involved in one or both schemes ranging from providing information to delivering the improvements. 
• 77 per cent of councils felt broadening the ECO's eligibility criteria would help increase the uptake, while 63 per cent said improving the process for householders would help.

Cllr Mike Jones, Chair of the LGA's Environment and Housing Board, said: "As the temperature drops this winter, thousands of vulnerable residents will have to pay more to heat energy inefficient homes for as yet, they have not been able to make the most of the schemes designed to help them.

"The Energy Company Obligation has been slow to roll out but by giving councils a stronger central role in its expansion, there would be a significant increase in the number of available projects and their implementation.

"Councils understand the communities they represent and hold the data which will help deliver schemes to those most in need. Any reform needs to put councils at the heart of delivering schemes to residents, to ensure money is spent quickly, efficiently and in a way which benefits those most in need.

"By taking on a stronger role in commissioning energy efficiency activity in their area, councils will be able to make a greater contribution to making homes both warmer and cheaper to heat. More than £1 billion has been collected under the Energy Company Obligation but companies are collectively more than 67 per cent behind on their targets to deliver warmer homes to the poor and vulnerable, including the elderly and disabled. Strict eligibility criteria, unnecessary bureaucracy and red tape makes the system complicated for residents and leaves them less likely to take up the energy efficiency improvements which could make a real difference this winter."

Notes to editors

The Local Government Association's Research and Information team conducted an online survey of all 353 councils in England. Fieldwork started at the end of October and finished at the end of November. Fieldwork took place between the end of October and November 2013 and yielded a response rate of 30 per cent (103 councils).

In an LGA survey of resident satisfaction survey carried out in July 2013, 61 per cent of respondents stated that they trust their council a great deal or a fair amount.

ECO eligible benefits include: state pension credit, receipt of child tax credit or working tax credit with a relevant income of less than £15,860, income-related employment and support allowance, income-based job seeker's allowance and income support, according to the Energy Saving Trust.

Additional information

Letter from the LGA to Ed Davey MP (PDF, 2 pages, 133KB)

Findings of the LGA's research (PDF, 2 pages, 147KB)