Get Government Money To Save On Fuel

Read about all the ways the Government can help you with your fuel bills and energy-saving home improvements, and why they still won't stop greater numbers of people from suffering fuel poverty.

As you no doubt already know, the government has announced its new energy package of almost £1bn. There are a lot of figures flying around about how much money is going into what, but they are confusing and not useful, and being reported differently by different sources.

So, instead of saying what's new, I'll do a summary of all the help we can get from the Government with our energy bills and our energy-saving home improvements. This includes all the old measures, the measures announced in the Spring budget, and the new help announced today.

What 's available to everyone?

At least 50% off the cost of insulation for everyone. This includes loft and cavity-wall insulation, and other `energy saving devices' like low energy lightbulbs, real time displays (which show how much electricity you're using), energy saverplugs and possibly other things such as draught-proofing, and tank and pipe insulation, too. (Details are sketchy at the moment, as this is one of the new measures. Sadly I couldn't get through to the Prime Minister's Office or the Department of Energy to get more information, if indeed they know the answers themselves!)

Insulation doesn't just cut the cost of bills (perhaps by hundreds of pounds per year), but it can have other benefits too, such as reducing condensation and even keeping the property cool during the summer. For more information on the costs and benefits of insulation and draught-proofing, see the Energy Saving Trust website.

Hopefully, we'll be allowed to choose the contractors for ourselves. We'll give you more details on that and how to claim the 50% when they become available, but for now you can call The Energy Saving Trust's free helpline on 0800 512 012.

Free stuff for poor households and pensioners

Pensioners and poor households can get free loft and cavity-wall insulation. I'm yet to see a definition of poor households and I can't even say for sure if all pensioners are included, but it seems so from the wording of a DEFRA (Department for Energy, Food and Rural Affairs) news release.

Some of you in this group are also be able to get free:

• Hot-water tank insulation
• Pipe insulation
• Draft proofing

The best news is that some may also get a central-heating system fitted or repaired for free.

However, all or most of the above improvements will go through the Government's Warm Front scheme, which provides grants of up to £2,700, or sometimes £4,000. This means that if the cost of the changes is going to exceed your grant you will be asked to pay the difference.

If you're asked to pay towards the cost

It's doubtful the contractors hired by the Warm Front scheme are the cheapest or best, so if you're unable to haggle with EAGA (which runs the Warm Front scheme) or the contractors themselves, consider getting quotes from other contractors for the additional work. Maybe, if your grant has run out, you can also benefit from a 50% reduction in the extra work you commission, just like the rest of the country!

If you get benefits or credits of some kind, or are over 60, you're probably eligible for the grant. 

Pensioners only

If you get Pension Credit then, this winter, whenever the temperature drops to an average of 0 degrees or less every day for seven consecutive days, you'll automatically get £25 (up from £8.50 previously). This is also the case if the weather is simply forecast to be at those temperatures. This 'Cold Weather Payment' can be paid for any eligible weeks between 1 November and 31 March.

If you turn 60 by 21 September, you may be eligible for an extra £125 to £400. This is the 'Winter Fuel Payment'. You must claim this benefit to receive it. To see what you're entitled to and how to claim visit Directgov.

More for the poor

The energy companies have agreed that there is to be a freeze to bills for poorer households this winter. However, as prices have just gone up, and in fact they've doubled since 2005, that might not be much use to many people. Ofgem said earlier this year that the huge price rises over the past few years have more than countered anti-fuel poverty measures, which has risen to over five million households now. (A household is technically in fuel poverty if over 10% of its income is spent on energy bills.)

Again, the poorest households have not been defined, but if you're eligible for benefits, you might benefit from frozen prices. Compare all tariffs, including social tariffs, and talk with your energy company to ensure they're including you in this scheme.

Who's paying for all this?

The Government pays some, but the extra £1bn comes from the energy companies in return for not being hit by a windfall tax (a one-off additional tax on huge profits). The energy companies are not supposed to increase their prices to recoup this billion. However, they will. It's too easy for them to add just a little bit extra during the next price rise, or to delay price reductions. (They already delay it, but they can delay it further still.) On the other hand, I'm willing to pay a bit more if it means those in fuel poverty pay less.

How soon will this all help?

If you get new insulation fitted, it'll likely pay for itself within three years. Only some of those measure mentioned above are new, and some of them merely replaced budget that had just earlier this year been taken away. What's good about it though is that it is longer-term thinking, which I'm glad to see in a Government, even if it's just because they were unable to negotiate a windfall tax from the energy companies.

But we mustn't forget the people who need help immediately. Sadly, there is no immediate help for the millions who are struggling with their bills right now. If lots of people try to claim this free stuff (which I hope they do) there is no way on Earth that all the paperwork to provide it will be completed before it starts getting cold, or even before the end of winter. Nor could enough contractors be found to complete all the work before winter anyway. I'm afraid that this winter, and probably the next, will see greater fuel-debt misery for increasing numbers.