National Energy Action Cymru response to Equality and Social Justice Committee inquiry into fuel poverty and the Warm Homes Programme

The Senedd Equality and Social Justice Committee holds the Welsh Government to account in specific areas, including tackling poverty, equality and human rights, and the implementation of the Well-being of Future Generations Act 2015.

On 30 September, the Committee agreed to undertake a follow-up inquiry into fuel poverty. It sought views on what fuel poverty means for people in Wales today and what progress has been made in implementing the new Warm Homes Programme – the Welsh Government’s flagship programme to tackle fuel poverty.

You can find a summary of our response below, alongside a link to our full report.

Executive Summary

1.1 National Energy Action (NEA) Cymru welcomes the Committee’s follow-up inquiry into fuel poverty and the Warm Homes Programme.

1.2 Fuel poverty remains a deep, enduring issue across Wales, estimated to impact virtually all of our low-income households.

1.3 Energy prices remain significantly higher than pre-crisis levels. As we head into winter, low-income and vulnerable households of all ages in Wales face higher energy bills, record levels of energy debt, and less support than last winter.

1.4 ‘Part One’ of the latest iteration of the Welsh Government’s Warm Homes Programme – its flagship programme to tackle fuel poverty – launched on 1 April 2024. National Energy Action welcomes the steps taken by the Welsh Government to provide deeper retrofit for those least able to pay and, more generally, has fully supported a ‘worst first’, ‘fabric first’ and ‘low carbon first’ approach.

1.5 However, National Energy Action understands that within the first six months of operation, some eligible households are currently being turned away for measures if their home is not yet viable or appropriate for a heat pump. This is very concerning and in sharp contrast to how we and other key stakeholders understood the scheme was intended to operate. It risks leaving eligible, low-income households, living in the least efficient homes, with no working heating or hot water. National Energy Action strongly recommends this issue is resolved as a matter of urgency.

1.6 We also highlight the ongoing need to:

• significantly scale up investment in the Warm Homes Programme;
• incorporate an area-based approach with its own distinct pot of funding;
• introduce energy efficiency-based interim targets, if we are to have a plan that meets the scale of the challenge.

1.7 It is also critical, of course, that Wales maximises the funding available from GB-wide schemes such as ECO4 and that all local authorities across Wales access and utilise ECO Flex funding and are adequately resourced to do so.

1.8 The context around fuel poverty has changed dramatically and significantly in the past few years and National Energy Action welcomes the Welsh Government’s efforts to engage the UK Government and Ofgem on related issues that sit within their control. Energy is an essential service and there is an urgent need for the UK Government and Ofgem to introduce deeper, targeted and enduring price protection; address crushing levels of energy debt; and support those who need it most.

1.9 The next decade must prioritise the delivery of enduring solutions to fuel poverty, including by substantially increasing investment to improve the energy efficiency of fuel poor homes and help ensure a fair and affordable transition to net zero.

1.10 Few things are more essential than having access to heat and power.