Part of the debate – in the Senedd at 5:55 pm on 17 November 2021.
This serious issue has been acknowledged by Ofgem in meetings with my officials. The local authority has actively explored funding remedial work with the energy suppliers who funded the original works. The Welsh Government hosted a round-table to discuss the issues between the local authority and the scheme administrator, Ofgem. Despite our best efforts, these has been unsuccessful, but we continue to press the case on behalf of the householders affected.
In the meantime, our officials have been working hard with Bridgend County Borough Council. Last month, we received an outlined business case seeking financial support to repair the 104 owner-occupier homes. I understand it's the local authority's intention to project manage the reinstatement of the properties to a fit state, supported by funding from themselves and from Government. It's obviously not right that residents should have to meet the costs for remedial work. In some cases, the cost could be around £30,000—a sum totally out of reach for some of the lowest income households in Wales. Unfortunately, I am yet to receive the advice from officials on the decision to fund the scheme based on the business case submitted, but I will, of course, update the Member and the Senedd when I do. However, he will be aware that the comprehensive spending review has been disappointing for Wales. This will mean taking difficult budget decisions that must be considered in the round. To be very clear, the works funded through a UK Government scheme failed to provide the necessary assurances and safeguards for home owners. I've been clear in my representations to the UK Government that it is their responsibility to make funding available for remedial works to be undertaken. The initial response from the UK Government suggested householders contact Citizens Advice for support. This is a clear dereliction of responsibility, and I wrote again to Lord Callanan on 29 September to push the case, but I have not yet had a response.
I want nothing more than to resolve this terrible position for the 104 residents in Caerau let down by the UK Government scheme, and I am aware that other projects undertaken through this programme have experienced issues, not only in Wales, but also in England. When designed and installed correctly, external wall insulation is an effective measure to improve domestic thermal energy efficiency to support the people of Wales, but this will be of little comfort to the residents in Caerau, where significant improvements have been made across the sector to ensure the lessons of the past are put into practice.
The lessons have indeed, as Huw suggested, helped shape similar home efficiency schemes in Wales since 2015, as we continue to invest in improving energy efficiency of existing homes in Wales, particularly the most energy inefficient homes, as we tackle the issues of climate change. It is very important that as we support homes to become more energy efficient, we focus on fabric-first and worst-first to reduce the impact of fuel poverty on households in Wales. Improving the energy efficiency of lower income homes is the most effective way we can support households to reduce their energy bills and help them out of fuel poverty.
The same quality of service should have been offered to the residents of Caerau as is now available through our Warm Homes programme in Wales. Welsh Government has invested more than £394 million since 2011 through the Warm Homes programme to deliver energy efficiency improvements to more than 67,100 homes in Wales. It demonstrates significant progress has been made to improve the product and workmanship qualities since the Caerau scheme was developed, and includes steps to give assurance to both Government and householders. The introduction of the PAS 2030 and PAS 2035 standards in 2019 also makes a positive impact on the housing retrofit measures designed and installed. As we start the consultation on the next situation of our Warm Homes programme, it is imperative householders have the confidence that our scheme will deliver energy efficiency improvements that are designed and installed to the highest standard. Arrangements must, of course, be in place to ensure that, in the event things go wrong, despite our best endeavours, they are rectified swiftly without undue delay and stress for the householders. I expect to begin our consultation no later than the end of December, but I can share with Members now that it is my intention that the quality assurance arrangements introduced in PAS 2030 and 2035 will be at the core of the retrofit programmes.
This Government is committed to delivering positive outcomes for people across Wales, driving up energy efficiency, driving down fuel bills and reducing carbon emissions. We believe that retrofitting draughty, cold homes is an important component of tackling fuel poverty and improving the well-being of our citizens. And as Huw rightly anticipated, I was delighted to recently announce further funding for our optimised retrofit programme. The £50 million being made available this year and a further £150 million over the next three years exemplifies our commitment to this most urgent agenda.
The programme takes a test-and-learn approach to ways of decarbonising existing social homes. By working in this way and approaching our housing stock on a home-by-home basis, we can avoid repeating the mistakes of the past. The ORP will not only improve the energy efficiency and reduce the carbon footprint of the homes in its scope, but, in doing so, it will help ensure that the people who live there can be both warmer and save money. Importantly, the ORP and our evaluation of the smart energy data and impact of retrofit technologies will be used to provide critical proven concepts that can inform wider retrofit work across tenures. Remember, if we are to meet our carbon reduction targets, we need to help 1.4 million homes to decarbonise and be the most energy efficient they can be.
Whilst we continue to invest in supporting social landlords and home owners through the optimised retrofit and Warm Homes programmes, we must not forget about the residents of Caerau. The situation they find themselves in, through no fault of their own, must be the absolute exception rather than any kind of rule. I hope our commitment to pursuing the UK Government for a fair response and determination to learn the lessons from this flawed Westminster scheme and our pursuit of a greener future in Wales, which puts well-being at the forefront of our decision making, gives the Member some comfort while my officials finalise their advice in response to the business case put forward by Bridgend County Borough Council. In the meantime, I urge him and other Members to make their views known as part of the forthcoming consultation. Through engagement and collaboration, we can make sure—