Chairman of the Committee of Public Accounts, Edward Leigh MP, has said the Warm Front Scheme seems to be "failing many of the poorest and most vulnerable households".

Mr Leigh said: "It is unclear whether the primary aim of the Scheme is to improve the energy efficiency of homes or to reduce fuel poverty. If the latter, then the Scheme is certainly still missing the mark a lot of the time, with only about a third of the genuinely fuel poor qualifying for help. And a full three-quarters of households who benefit from the Scheme are not in fuel poverty.

"Too much funding is also going to those whose dwellings are already energy efficient -nearly a fifth of those receiving assistance over three years. And over £15 million was spent on measures which have a limited effect on overall energy efficiency and would do little on their own to lift households out of fuel poverty.

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"As more families sink into fuel poverty, the Warm Front Scheme must be focused much more sharply on those households genuinely needing help."

Mr Leigh was speaking as the Committee published its 39th Report of this Session which, on the basis of evidence from the Department of Energy and Climate Change, the Department for Environment, Food and Rural Affairs and eaga plc, examined the performance of the Scheme and the management of the contract with eaga plc.

The Warm Front Scheme provides assistance to eligible households with the installation of heating and insulation measures in order to improve household energy efficiency and to reduce fuel poverty. Until the formation of the Department of Energy and Climate Change in 2008, the Scheme was the responsibility of the Department for Environment, Food and Rural Affairs.

The maximum grant available under the Scheme did not change between July 2005 and April 2009. Over the same period, labour costs for gas and oil central heating rose by 8.9% and costs for other services by 7.3%. One impact has been to increase the number of applicants required to contribute to the cost of works from under 1 in 10 in 2005-06 to one in four in 2007-08. The average contribution in 2007-08 was £581. Some 6,000 households withdrew their application and 1,400 opted for less expensive measures.

(CD/KMcA)