Climate change & energy

Fuel poverty: Grants for individuals; Warm Front

Warm Front logoDoes the Warm Front Scheme offer value for money?

To ensure that the Warm Front Scheme is offering value for money, Defra has commissioned two independent studies from White Young Green (WYG).

The first report looked at the cost of installing a new gas central heating system in a property under Warm Front.

The second looks at two issues; the costs of installing a replacement boiler (as opposed to a full central heating system) and new oil central heating systems under Warm Front.

The studies

To allow a meaningful comparison between the costs that are charged through Warm Front and those charged by private installers or contractors, a theoretical model of a typical three bedroom house was used as a basis for both studies. This allowed WYG to accurately identify the quantity of materials that would be required to install either a new oil or gas system or a replacement boiler, and therefore to make an adequate comparison on costs.

In addition to the cost of the equipment purchased by Defra and provided to the installer free of charge, a large element of the Scheme’s costs relate to installation costs. These include sundry materials that are paid for directly by the installer and include consumerables which will vary from house to house eg copper piping, fittings and cables, as well as labour costs.

Both studies drew upon nationally published cost information as well as Warm Front cost information.

Conclusions

The studies confirm that the current Warm Front Scheme for installing both system types is providing value for money.

  • The average price for gas and oil heating systems under Warm Front are cheaper than found in the wider market for similar serivces
  • The prices paid by Defra for the components used in the systems fitted through Warm Front represents excellent value for money when compared to that found in the wider market.

Other points to note:

  • Warm Front prices are set on a regional basis, and there are some disparities between the prices paid in differing regions than can be found in the wider market.
  • Warm Front prices have increased moderately since the data included in the gas study was recorded in June 2007,resulting from a fresh procurement exercise for the materials used on the Scheme and adjustments in installer payments in line with rates published by Department of Business, Enterprise and Regulatory Reform (BERR). It is likely that the wider market prices will have also changed slightly during this period. 
Additional benefits of the Warm Front Scheme

Warm Front offers a range of additional benefits that must be taken into consideration when making any comparisons with costs in the wider marketplace. For example:

  • Warm Front prices remain consistent, regardless of fluctuations in demand: In the private sector, it is possible that contractors may cut their prices to below those of Warm Front during periods of extremely low demand (e.g. when they would otherwise be paying the wages of engineers who were sitting idle). It is therefore possible that in isolated instances installers are offering a similar service to Warm Front at a lower price. However, WYG’s evaluation shows that this is not representative of the wider market 
  • Warm Front offers a comprehensive service: This includes a two year warranty period, emergency breakdown cover post installation and (on gas systems) two annual service visits. The components and workmanship are also of a high quality. 
  • Warm Front insists on stringent standards for health and safety, environmental protection and quality to protect both contractors and clients: At present, Warm Front records a health and safety incident at less than 0.01% of installations. To maintain this protection can require additional costs, such as use of scaffolding rather than ladders when working at height, positioning a boiler in a more expensive location or using more protective oil tanks. 
  • Warm Front complies with all current building regulations and appropriate British Standards: In recent years the cost of replacing a boiler has increased significantly as a result of updated building regulations. Most notable of these are the requirements to make replacement boiler installations fully condensing, update the heating and hot water system time and temperature controls and convert the hot water system to fully pumped where it is not to increase the heating system efficiency. There is also the need to upgrade the electrical earth cabling to comply with the latest electrical wiring regulations. All of these are extremely costly procedures.

Page last modified: 8 May 2008
Page published: 29 February 2008

Department for Environment, Food and Rural Affairs