- Cymraeg
- English
BILL'S BENEFITS BLUNTED BY BARNETT - WELSH LIB DEMS
March 23, 2009 9:42 AM
The Welsh Liberal Democrats have today outlined their backing for the Fuel Poverty Bill, but have warned that Wales would not see the full benefits of the Bill if it is passed because of the Barnett Formula.
The Bill will provide for a massive 'fuel poverty-proofing' of the existing housing stock in England to bring older homes up to current energy efficiency standards, and will also introduce social tariffs to reduce the energy bills of the most vulnerable groups. Any new money for energy efficiency measures will mean that Wales will get a corresponding share decided on the basis of the Barnett Formula, which is based on the population of Wales relative to England.
However, as the Welsh housing stock would take more money per head to bring up to standard, and with higher levels of fuel poverty in Wales, any extra money arising from the Barnett Formula would fall short of the need in Wales.
The most recent figures available suggest that fuel poverty levels in Wales are almost double that in England, in 2006 11.5% of households in England were fuel poor, while in Wales this figure was 19.5%. Due to the rise in fuel costs in the last year, National Energy Action Cymru has estimated that 340,000 Welsh households are now in fuel poverty, around 1 in 3. Home energy efficiency figures show that 26.7% of homes in England have loft insulation of less than 100mm, compared to a figure of 33.8% in Wales.
On Monday the Welsh Assembly Government launched the consultation on the National Energy Efficiency and Savings Plan which will review the Home Energy Efficiency Scheme (HEES) amongst other fuel poverty policies. Since HEES began in 2000 over 200,000 energy efficiency measures have been installed in Wales. However the scheme has been less effective at targeting the fuel poor - when the scheme was reviewed in 2005, it was estimated that only 29% of householders receiving HEES grants were likely to be in fuel poverty.
Commenting, Liberal Democrat Shadow Secretary of State for Wales, Roger Williams said:
"This Bill is extremely important, as it lays out some excellent ideas that can provide relief from fuel poverty and make homes greener, but Wales will not see the full benefit as any new funding will be restricted by the Barnett Formula.
"Wales has higher levels of fuel poverty, and a poorer housing stock, so a crude population-based formula means that if new funding comes forward, the Assembly simply won't get the cash to do the work.
"We have been highlighting the unfairness caused to Wales by the Barnett Formula for years, and this is yet another example where the needs of Wales will not be met by the Barnett Formula."
Montgomeryshire MP Lembit Öpik added:
"Many vulnerable people have been hit hard by fuel prices this winter, and insulation and other energy-saving measures are a cost-effective solution that will provide long-term benefits, both to people's pockets and to the environment.
"The Government is also keen to stimulate the economy through capital projects, and these measures fit the bill in that regard too, so I hope the Government will give their backing to the Bill.
"I will be giving my support to the Bill on Friday, as it contains many excellent measures that will, directly or indirectly, help reduce fuel poverty in Wales. However, I know that this Bill could do even more if the Barnett Formula was replaced with a needs-based formula that recognised the particular needs of Wales."
What would you like to do next?
-
Subscribe for updates
Follow the party's activity on...
- Twitter:
- Liberal Democrats
- Facebook:
- Liberal Democrats
- YouTube:
- Liberal Democrats