Energy efficiency grants 'should help low-income households'

24/04/2009

Government plans to increase its Warm Front grants to vulnerable householders will help people with their gas and electricity bills, Consumer Focus has said.

According to the consumer group, the funding boost will encourage more people in to the scheme - but it warned that "many" people will still miss out on the assistance.

Warm Front is a government scheme which installs energy efficiency improvements in the homes of "fuel poor" households in England - cutting bills over the long term.

However, the grants have proved controversial - with the costs of the actual improvements often outstripping its value, meaning that the customers have to "top up" the costs out of their own pockets.

This in turn might be funded through credit, putting the low-income households at risk of an increased debt burden.

Partly to address this problem, the government announced in the Budget this week that the maximum grant would rise from £4,000 to £6,000 per household.

Jonathan Stearn, energy expert for Consumer Focus, said: "This welcome increase to the Warm Front grant will help many of the poorest customers who have previously dropped out of the scheme because they could not afford the top-up fees needed.

"However, many vulnerable consumers will still lose out."

Tags; Budgeting Advice, Retirement Money Problems,

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