A combined £1.9 billion in extra fuel payments is expected, as the demand for gas and electricity continues to rise during the so-called Big Freeze.

It seems the rising demand has come as a surprise to companies such as the National Grid, who have reported a limited supply, causing prices to escalate even further.

Many argue that it is another example of poor planning and forecasting on behalf of the energy companies, and once again the public have no choice but to pay prices far in excess of most other European countries.

An increase of almost 50% on this months fuel bill is likely to hit those on lower incomes and benefits the hardest, many of whom are already struggling to afford to heat their homes.

Aside from winter fuel allowances, the Government could have issued advice on how to keep warm this winter. This information could have included tips on ensuring valuable heat stays inside your home.

With recent news that funding for insulation grants is coming to an end later in the year, the Government needs to do more to ensure that households in Britain are not forced into choosing between heating their home, or putting food on the table.

More information and advice on insulating your home is available, as well applying for insulation grants for your home.

A wait of 6 months for free insulation

Those applying for 100% grant are being told they face a wait of up to 6 months for work to be done, as the amount of funding is due to be halved in 2010. The Warm Front scheme has made 2 million UK home more energy efficient since its launch in 2000, cutting the amount of wasted energy emitted and saving millions of pounds off the cost of energy bills across the country.

The Government has pumped just shy 0f £1 billion into the scheme in the last 3 years, but according to reports, the Chancellor is due to announce that money available in 2010 is to be cut to £195 million. The result? Waiting times for those looking for 100% insulation grants will rise from the current 50 days to 6 months.

Those who are able to pay shouldn’t be affected.

It’s not clear whether funding for those who not on benefits will face similar waiting times. Currently, if a homeowner, tenant or landlord is not on benefits, or are under 70, they are classed as Able To Pay (ATP). This group still receives some funding from the government, but can usually expect to see insulation installed and fitted within days, rather than months. Why? Because they lengthy process of applying for the relevant grant is bypassed, and insulation contractor can receive payment immediately.

The future of insulation grants

So what does this mean for the future of free insulation grants? It’s not yet clear whether the amount of funding available will be reviewed again before next years budget. Energy Minister David Kidney is lobbying the government to increase the funding available for the Warm Front scheme, but it seems likely that a) funding will be cut b) waiting times for those applying for 100% grant will increase and c) those able to pay for part of the cost shouldn’t be affected.

“It is shocking that so many families have to borrow money to pay for essentials such as heating… families cannot continue to scrape by like this,” Fergus Drake, Save the Children’s UK Director said.

Those who  earn less than £12,000 said they would struggle this winter, and over half said they would be forced to borrow money to pay for heating during Christmas.

According to Save the Children,  those most likely to go cold this winter are families where parents earn less than £30k per annum combined. However,  where these families receive certain benefits, insulation grants are available to cover up to 100% of the cost of home insulation, therefore making instantly cutting an annual energy bill by around £250, for free.

Cavity wall or loft insulation could help to prevent heat escaping from the home and thus reduce bills by up to 20% a year. The effect is instant and the work takes just a few hours to complete.

According to recent reports, 3.5 million eligable homes have not yet claimed a free insulation grant. Find out  if you’re eligable to receive a free insulation grant towards cavity wall of loft insulation.

With the cost of fuel set to continue to rise, the Council has agreed to work in partnership with agencies to “ensure that the residents Aberdeenshire get access to the most cost-effective ways ofpaying for their domestic fuel”.

Energy efficient measures, including cavity wall and loft insulation, have already been installed in 3,800 council homes, and the Council agreed this figure should increase over the next 2-3 years.

It is yet another example of where insulation can be used to dramatically reduce heating bills.

Full story: http://www.deesidepiper.co.uk/news/Support-for-fuel-poverty-action.5793798.jp