Agenda item

The Committee considered a report and presentation of the Interim Corporate Director of Regeneration, Economy and Growth which provided an overview of the National Fuel Poverty Strategy and countywide fuel poverty programmes (for copy of report and presentation see file of minutes).

The Housing Regeneration Project Manager, Cliff Duff, introduced the presentation, explaining the figures in the report were subject to a two-year time lag and actual levels of fuel poverty were predicted to be higher than those reported. The Project Manager outlined the national and local context, informing the Committee that the percentage of households in fuel poverty in County Durham was 14.7%, with the county having the third highest level of fuel poverty in the north east. 

Members heard that in April 2022, Ofgem (the Office of Gas and Energy Markets) increased the energy price cap for approximately 22 million customers leading to an energy price increase of £693 per annum for a typical household. Following this, the national fuel poverty charity forecast an approximate 54% increase in households in fuel poverty. A further energy price cap increase will take place in October.

The Project Manager explained that the Housing Solutions Team coordinates delivery of the corporate Fuel Poverty Strategy, overseen by the County Durham Energy and Fuel Poverty Partnership which promotes awareness and uptake of fuel poverty grants and the Committee received details of the various programmes of support.

The Warm Homes Campaign uses a variety of mechanisms to promote support available, ensuring those without access to digital formats are not excluded. ‘Managing Money Better’ offers advice to low-income households regarding managing fuel debt and it had assisted over 600 households during 2021-22.  Financial assistance is also available through the Household Support Fund which provides fuel vouchers and assistance with the cost of boiler maintenance and the Warm and Healthy Homes campaign, which recently carried out work with GP surgeries to assist patients suffering from cold related illnesses, received the ‘Energy Champions of the Year’ national award for its work.

The Project Manager informed the Committee that the Energy Company Obligation (ECO) requires energy companies to supply grants to assist low income households to become more energy efficient. Details of ECO phase 4 are awaited and it is expected that grants available under ECO4 will be substantially higher than those offered in the previous phase.

Ian Conway, Interim Head of Development and Housing provided the Committee with information on developments to help to improve energy efficiency within Council buildings.

The Interim Head of Development and Housing explained that the introduction of Part L of the building regulations on 15 June 2022 requires new homes to produce 30% less carbon emissions. In addition, the Future Homes and Buildings Standard which will come into effect in 2025 will require all new-build properties to produce 75-80% less carbon emissions than houses built under the previous regulations. The officer highlighted that Durham County Council is looking ahead to the Future Homes Standard by fitting new Council buildings with low carbon technology heating sources.  Furthermore, Policy 29, within the Council Plan, encourages sustainable design and the use of renewables.  With regard to private rented properties, from 2028 homes let privately will be required to achieve a minimum Energy Performance Certificate rating of Band C.

The Chair thanked officers for their presentation and invited questions and comments from the Committee.

In response to a question from Councillor Charlton as to whether the Council plays a role in ensuring social housing providers comply with energy efficiency standards, the Interim Head of Development and Housing clarified that registered providers are regulated by the Regulator of Social Housing.

Councillor Potts questioned the installation and running costs related to air source heat pumps in rural areas in particular and he asked whether, under the ECO4 scheme, there will be a requirement to install air source heat pumps, commenting that he was concerned that those already struggling financially would be unable to meet any extra costs associated with these measures. The Housing Regeneration Project Manager responded that there will be no requirement to install air source heat pumps under the ECO4 scheme and in respect of costs and efficiency, he acknowledged that, in some circumstances, air source heat pumps are more efficient when combined with other measures such as solar panels.  Councillor Potts observed a lack of new-builds being fitted with solar panels and asked whether regulations are in place to ensure that new housing developments within the county are fitted with solar panels. The Interim Head of Development and Housing explained that developers comply with measures within national building regulations which do not require developers to include the provision of solar panels and carbon neutral forms of energy within new housing design.

Councillor Martin referred to the legislation for all properties to achieve a minimum energy performance rating of Band C by 2030 and asked what action the Council is taking to ensure all domestic properties achieve the requirement. The Housing Regeneration Project Manager explained that a SAP property database had been developed in order to identify properties in lower SAP bands, to target intervention in order to bring those properties up to Band C.  The Committee heard that under the ECO4 regulations, in the drive to achieve the Band C rating, it is expected that to qualify for a grant, households will be required to improve their energy efficiency.  

Councillor Adam questioned how those in fuel poverty would be able to afford to pay a contribution towards the grant funding available. The Housing Regeneration Project Manager responded that a small fund was available to assist and he highlighted that it is possible that client contributions may not be required under the ECO4 scheme.

Councillor Brown expressed her view that Policy 29 lacks effectiveness with regard to carbon neutrality and she suggested that the Committee should lobby Cabinet for a supplementary planning document in relation to Policy 29, which would require future new developments within the county to include solar panels and carbon neutral forms of energy. 

In response to a request from Councillor Brown as to the current definition of fuel poverty, the Housing Regeneration Project Manager stated that historically, a household was considered to be fuel poor if it was required to spend more than 10% of its income on energy costs to heat living spaces to an adequate standard (with ‘adequate' defined as 21°C in the main living area and 18°C in other rooms).  More recently, the Fuel Poverty Strategy for England introduced a new definition of fuel poverty, the Low Income Low Energy Efficiency indicator (LILEE).  Under this measure, a household is said to be in fuel poverty if the amount of money it would need to spend to keep the home at a reasonable temperature is above the national median level, and, if it spent that amount, the residual income would place the household below the poverty line.

Co-opted Member, Mrs Morris, observed actions to promote the installation of air source heat pumps and she queried why the same impetus was not being given to other energy efficiency measures such as solar panels. The Interim Head of Development and Housing explained that the Council’s housing programme encourages all modern methods of construction and design.  Mrs Morris then commented on the Seaham Garden Village project and questioned why this is the only project of its kind within the county. Mrs Morris also commented that soaring energy prices are causing hardship, not only for households but also for many small businesses and she asked what financial assistance is available to small businesses. In response, the Interim Head of Development and Housing advised that the Business Energy Efficiency Programme (BEEP) supports the county’s small businesses to access advice on energy efficiency measures and grants.

In response to a query from Councillor J Quinn regarding the plans for the installation of low carbon heat sources in the new Council Housing Programme and clarification as to whether gas would still be available for cooking, the Interim Head of Development and Housing clarified that new Council homes will not be connected to gas mains and alternative mechanisms for cooking are being explored.

Councillor Elmer reminded members that in 2006 there was a national commitment to make all homes carbon zero by 2016 and at present, the target is to achieve an 80% reduction in carbon emissions relating to housing by 2025 and he expressed his disappointment at the shifting targets.

Councillor Elmer echoed Members’ concerns that measures such as solar panels are not included in building regulations and he expressed his opinion that there is a need for a new metric to measure progress with regard to retrofitting measures such as installing insulation in all domestic housing in the county. The Housing Regeneration Project Manager suggested that the Insight Team may be able to assist to develop such a metric to be used for future performance monitoring.

Councillor Adams spoke of his concern with regard to the cost of living crisis and commented that he would like to see the Council make representations to Government for wages and welfare benefits to increase in line with inflation.

The Chair asked members for their views as to whether the request from Councillor Adam fell within the remit of the Committee.  Members responded and confirmed that they felt this request was outside the remit of the Committee.

Councillor Manchester referred to the next steps outlined in the report and requested that Government be asked to consider reintroducing the feed-in tariff for solar panels. The Committee agreed this should be considered for inclusion in future correspondence when lobbying Government, as proposed in paragraph 61 of the report.

Following the discussion, it was agreed that the Committee should write to the Cabinet Portfolio Holder for Economy and Partnerships to request Cabinet to lobby  Government to change the national building regulations, with a view to requiring developers to include solar panels and carbon neutral forms of energy and heating in future developments.  

Resolved:

a)    That a further update on Fuel Poverty be included within next year’s Environment and Sustainable Communities Overview and Scrutiny work programme.

b)    That the Committee request, that Cabinet lobby Government to change the national building regulations, with a view to requiring developers to include solar panels and carbon neutral forms of energy and heating in future developments.

c)    That the Committee request, that Cabinet when lobbying Government, as proposed in paragraph 61 of the report, ask that Government consider the reintroduction of the feed-in tariff for solar panels.