Figuring it out: five issues emerging from the Scottish draft budget

The week before Christmas might not seem an ideal time to be mulling over the minutiae of economic forecasts and the implications of tax changes. But on Monday morning, the Fraser of Allander Institute (FAI) review of last week’s Scottish draft budget attracted a big turnout, and helped make sense of the numbers announced by Scotland’s Finance Secretary, Derek Mackay.

Here are some of the key issues to emerge from yesterday morning’s presentations.

  1. Growth: degrees of pessimism

Last month, the UK Office for Budget Responsibility revised downwards its growth forecast for the UK economy to less than 2%. The FAI, meanwhile, has forecast a slightly lower growth rate for the Scottish economy of between 1% and 1.5%. However, the independent Scottish Fiscal Commission (SFC) is much more pessimistic, forecasting growth in the Scottish economy of less than 1% up to 2021. If the SFC’s forecast turns out to be accurate, this would mean the longest run of growth below 1% in Scotland for 60 years.

Dr Graeme Roy, director of the FAI, suggested that the SFC’s gloomy outlook is based on the view that the Scottish working-age population is projected to decline over the next decade. In addition, the SFC also believes that the slowdown in productivity, which has been a blight on the Scottish economy since the 2008 financial crisis, will continue.

  1. Income tax rises: reality v perception

Mr Mackay proposed big changes in Scotland’s tax system, with five income tax bands stretching from 19p to 46p. While these measures attracted the biggest headlines for the budget, the FAI believes that most people will see little meaningful impact in their overall tax bill (relative to income). Charlotte Barbour, director of taxation at the Institute of Chartered Accountants of Scotland, also suggested that the tax changes are unlikely to result in any significant behavioural changes in the way people pay tax in Scotland. And, as has been noted elsewhere, high taxation does not necessarily lead to unsuccessful economies.

However, as the FAI highlighted, perception is important, and if Scotland comes to be seen as the most highly taxed part of the UK, this could have serious implications for business start-ups and inward investment.

  1. Taxation: two systems, multiple implications

Charlotte Barbour also highlighted some of the implications of the tax changes in Scotland that haven’t featured widely in press coverage. How the changes interact with areas such as Gift Aid, pensions, the married couple’s tax allowance, Universal Credit and tax credits will need careful examination in the coming weeks.

  1. Public spending: additional resources, but constrained settlements

The FAI’s David Eiser noted that Mr Mackay was able to meet his government’s commitments to maintain real terms spending on the police and provide £180m for the Attainment Fund. He also announced an additional £400m resource spending on the NHS. But these settlements are constrained in the context of the Scottish Government’s pay policy,

Mr Mackay’s plan offers public sector workers such as nurses, firefighters and teachers earning less than £30,000 pounds a year a 3% pay rise, and those earning more than that a 2% rise. For the NHS alone, this could cost as much as £170m.

In addition, analysis published yesterday by the Scottish Parliament Information Centre (SPICE) has estimated that, if local authorities were to match the Scottish Government’s pay policy, this would cost around £150m in 2018-19.

  1. The budget’s impact on poverty

If the growth forecasts are correct, even by 2022 real household incomes in Scotland will be below 2007 levels. Dr Jim McCormick, Associate Director Scotland to the Joseph Rowntree Foundation, looked at the Scottish budget in the context of poverty, and suggested that three principles need to be addressed before the budget can be finalised: there are opportunities both to increase participation by minority groups in employment and to improve progression in low-wage sectors, such as hospitality and retail; energy efficiency is one important way of lowering household bills and improving housing quality in the private rented sector; and options such as topping up child tax credits and more generous Council Tax rebates are better at reducing poverty than cutting income tax.

Finalising the budget

As all of the speakers noted, the Scottish draft budget is not a done deal. The minority Scottish National Party government in the Scottish Parliament needs the support of at least one other party to ensure its measures are adopted. The most likely partner is the Scottish Green Party, which has indicated that the budget cannot pass as it stands, but could support the government if an additional £150m is committed to local government.

It took until February this year before the Scottish Government’s 2016 draft budget could be passed. Time will tell whether a budget announced shortly before Christmas 2017 can finally be agreed before Valentine’s Day 2018.

The complete collection of slides presented at the Fraser of Allander Institute’s Scottish budget review are available to download here.

Our blog post on the Fraser of Allander Institute’s review of the Chancellor of the Exchequer’s 2017 Autumn Budget is available here.

Creating sustainability in health and social care

The question of the sustainability of funding for health and social care services has been in the spotlight recently. The Conservative Party manifesto contained proposals around making individuals pay for more of their social care costs, to deal with the “challenges of an ageing society”. Meanwhile, figures suggest that NHS Trusts in England overspent by £770m last year despite a focus on efficiency savings.

However, creating and maintaining sustainability in health and social care is much broader than financial sustainability. It means considering other factors, including environmental, training and project management issues. This takes planning, commitment and an understanding of the aims and expectations of staff and senior management.

A research symposium earlier this year (hosted by Healthcare Improvement Scotland and partners) explored these issues further, looking at the evidence underpinning ways to create sustainable health and care systems.

Environmental sustainability

Environmental sustainability is something which all organisations are being asked to address and improve. The issue of climate change has led to a focus on behaviour change and a more sustainable use of resources.

  • Buildings – This includes the planning of new healthcare buildings, as well as adaptations to existing structures to make them more energy-efficient. Alternative building materials and designs have been used in new projects to improve energy efficiency, with some buildings even incorporating wind turbines, solar panels and geothermal capture centres. Reducing waste water and improving temperature regulation through heat capture and insulation techniques are also being adopted. While these may be costly initial spends for many, the long-term cost savings are also significant, as well as ensuring that the buildings meet minimum national requirements for energy efficiency and contribute to emissions reduction targets.
  • Resource, waste and recycling management – In many offices and clinical centres, individuals are encouraged to be personally responsible for their own reduction in waste and improved use of recycling facilities; however, this must also be facilitated at an organisational level. Clearly labelled recycling bins, promoting reduction in of the use of disposable water and coffee cups, and encouraging employees to use less paper when report writing (printing double sided for example, or going paperless where possible) are all simple ways in which environmental sustainability can be promoted in health and social care settings. Innovative techniques such as reusing water in internal plumbing, or creating bespoke recycling facilities to help reduce the amount of clinical waste incinerated, are being developed.
  • Remote monitoring and the use of technology – There have been major advances in the use of remote technology to host meetings, video-conferences, follow up appointments and assessments for those in receipt of reablement care via tele-health. Remote monitoring of patients, as well as the use of tele-health and other digital platforms can allow consultations and routine check-ups to take place without either party having to leave the house or office, thereby reducing vehicle emissions used in transport. In social care, remote meetings and cloud-based reporting can allow front-line social workers to remain out on visits instead of having to return to the office to fill out reports, again reducing vehicle emissions.

Sustainable resource management

In the face of more limited funding, joint working between health and social care is being heralded as a new way of cost saving, making the most of ever-depleting resources in the face of ever-greater demands. Being efficient with resources, through effective planning and management is one of the key ways to ensure resource sustainability in the long term, especially for the NHS and local authority social care teams.

Approaches include:

  • Making full use of the entire health and care ecosystem – This means using the entirety of the health and social care ecosystem, its capacity, expertise, resources and the end-to-end care it can provide. It means engaging carers, GPs, nurses, and pharmacists to improve efficiency, make better use of resources, spread the workload and improve satisfaction levels and outcomes for service users.
  • Using careful and well-managed commissioning models  This means making good decisions about commissioning and outsourcing to make best use of funding and other available resources. It also means allocating to appropriate projects, being mindful of the possible consequences of payment by result frameworks, and getting the best value possible.

Sustainability in practice

The final level of sustainability in relation to health and social care practice involves the sustainable implementation of programmes. This means finding ways to ensure that implementation is carried out in ways that ensure long term success and positive outcomes. It involves understanding context, and the culture of the organisation and makes reference to something discussed previously in our blog on implementation science.

Ensuring sustainability in practice requires multiple efforts including:

  • Making sure that practice becomes embedded into everyday work
  • Sharing best practice
  • Maintaining motivation among your workforce
  • Using robust, local evidence in a way that is clear and concise.

Understanding what kind of evidence leads to sustainable programme implementation is also important: economists prefer cost-based strategies, chief executives want one-page summaries, professionals want examples of other organisational based programmes and what was required to implement effectively, and councillors want case studies based around the positive impact on services users. Case studies can at times actually be the least helpful because even in a failing programme there is usually one example you can use to find positives.

Another issue with evidence is the reluctance to report on issues or challenges, or failed projects, when actually some of the greatest insight can be gained from this. All of the learning that can be gained from failures could be useful when trying to make programmes more resilient so they can be more sustainable.

Final thoughts

The concept of sustainability in health and social care cuts across many areas of organisational management and personal practice and behaviour. Encouraging and participating in sustainable practice can mean anything from being more environmentally friendly by digitising reports, recycling paper or changing to energy saving lightbulbs to promoting sustainability of resources through efficient and effective management, utilising the skills, expertise and resources of the entire health and social care ecosystem.

These approaches to sustainability should not only help health and social care as a profession to be less impactful on the environment but will also allow organisations to save money, improve efficiency and ultimately improve outcomes for patients and service users as a result.

* The 5th Annual Research Symposium: Evidence for sustainability – exploring the current evidence underpinning ways to create sustainable health and care systems was held on 16 March 2017. It was jointly hosted by Healthcare Improvement Scotland, Health Services Research Unit and the Health Economics Research Unit at the University of Aberdeen, and the Nursing, Midwifery and Allied Health Professions Research Unit at the Chief Scientist Office.

If you enjoyed this blog, you may also be interested in other articles on implementation theory and commissioning in health and social care.

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Eating or heating: tackling fuel poverty in the UK

nastural gas flame

It is a complete scandal that people die because they can’t afford to heat their homes. ‘I, Daniel Blake’ shows the tragic circumstances and daily dilemma of ‘heating or eating’ faced by many thousands of people in Britain today.”

Those were the words of I, Daniel Blake lead actor Dave Johns as he backed a report published in November 2016 by the charity National Energy Action. The report, which looked at the health problems related to fuel poverty, claimed that a child born today may never see fuel poverty eradicated from the UK unless more assistance is given struggling families.

Identifying the “fuel poor”

In England, according to the most recent official government statistics, more than 2.3 million (10%) households are living in fuel poverty. Leeds, Birmingham, Manchester, Liverpool and Cornwall are among the places worst affected. At risk groups include single parent households with dependent children, rural households, and those living in the private rented sector. Research also highlights that those customers who use prepay meters, which include a large proportion of the most vulnerable customers, are more likely to be “fuel poor” as they do not have the flexible tariff options and reduced rate deals which are offered to customers who pay via direct debit.

The picture is not much better elsewhere in the UK. A report produced by the Scottish Fuel Poverty Strategic Working Group estimated that there are currently over 800,000 households (35%) living in fuel poverty, with levels as high as 50% in rural areas. Meanwhile, in Wales the latest estimates suggest that 23% of households are currently living in fuel poverty.

heater gauge

Tackling the causes of fuel poverty

Not being able to afford to heat your home, or having to choose between eating or heating is the stark choice many families in the UK are being forced to make, however it is clear that fuel poverty stems from a number of different factors, including the cost of fuel, the price of energy, and rising energy consumption habits.

The latest Scottish Government strategy on tackling fuel poverty suggests that four drivers of fuel poverty need to be tackled before fuel poverty can be eradicated. These are:

  • Raising incomes  8 out of 10 households (in Scotland) in income poverty are also fuel poor.
  • Making energy costs affordable  in many cases the cost of fuel is rising faster than household incomes.
  • Improving energy performance in housing  people living in a home with low energy performance are 3.5 times as likely to be suffering from fuel poverty as those in a home with high energy performance.
  • Changing habits of energy use  adopting energy-saving behaviours can make a significant difference to fuel bills by reducing overall demand. There is also a need to better understand and increase use of “green energy”.

But what about energy suppliers?

In December 2016, a report from Turn2Us suggested  that two million households suffer from fuel poverty. Subsequently, the “big six” energy suppliers met at Westminster to discuss what they could do to help tackle fuel poverty. At the moment, there is no legal requirement for energy companies to take action to reduce fuel poverty. However, they are coming under increasing pressure to help tackle fuel poverty, by reflecting some of their profit margins in the rates they give to customers. The idea of automatically putting vulnerable or “at risk” customers onto the lowest fuel tariff was discussed. However the bulk of the discussion, according to reports, concentrated on how to increase awareness of existing options, including the government-led Warm Home Discount, individual support grants, the Cold Weather Payment, and practical support from suppliers themselves.warm fire

Practical strategies to tackle fuel poverty

A number of schemes have been developed to try to help tackle fuel poverty, with national roll outs being supplemented by more localised programmes often funded by local authorities or charities.

In November 2016 the Scottish Government pledged an extra £10m to be spent on tackling fuel poverty. £9m was allocated for councils and housing associations to make it easier for tenants to heat their homes. A further £1m is to be made available to provide interest free loans to help people make their homes more energy efficient.

Other schemes have also been introduced by local authorities to try and tackle fuel poverty, including Ready to Switch? Launched in November 2012, Peterborough City Council’s collective switching scheme uses the combined buying power of residents and businesses within the community to negotiate cheaper prices with energy companies. According to figures from Peterborough Council, to date, hundreds of households have switched to save on gas and electricity, with some reducing annual bills by nearly £150.

Boilers on prescription (BoP) is a new funding stream which is being tested in a number of local authority areas, including Sunderland. The fund is managed through NHS Clinical Commissioning Groups, and householders at risk of cold related illnesses are referred for heating upgrades via health professionals. One of the main ideas behind BoP is to reduce a resident’s need for NHS interventions by improving their thermal comfort at home. It is hoped that a warmer, healthier home could reduce the number of GP appointments or emergency admissions.



Altering the design of new homes and subsidising the retrofitting of older ones is also a key policy strategy for tackling fuel poverty. Providing homes which are designed or adapted to be energy efficient through improved insulation, the installation of solar panels or using appropriate lighting or heating systems will allow the government not only to reduce fuel poverty in the present, but should also reduce the likelihood of more people falling into fuel poverty in the future. Reducing the demand for energy by creating homes which use less of it may also help to drive down the cost of energy, resulting in even bigger savings. However, it is not just the responsibility of individual homeowners to carry out these improvements. Local authorities, housing associations and private landlords also need to (and have in many instances) recognise the vital role they play, particularly in relation to more vulnerable customers who are at increased risk of falling into fuel poverty. Retrofitting has been increasingly popular in other parts of Europe, as these case study examples show.

The issue of fuel poverty in the UK does not appear to be going anywhere fast. Despite the attempts of governments across the UK to reduce the figure, in many areas the number of people falling into fuel poverty continues to rise. While there are individual areas of good practice aiming to help some of the UK’s most vulnerable families to heat their homes, it is clear that a wider commitment to combat the underlying causes of fuel poverty is needed, along with a recognition that there is a responsibility across the board to provide help and information to families suffering as a result of fuel poverty.

If you found this article interesting, you may also like to read our blog on the Dutch Energiesprong model and our research briefing on retrofitting (member access only).

Follow us on Twitter to see what developments in public and social policy are interesting our research team. 

Energiesprong: how a Dutch solution could improve Britain’s energy inefficient housing

There’s little doubt that many of Britain’s homes need to improve their energy efficiency. A 2015 study by the Association for the Conservation of Energy found that the UK has among the highest rates of fuel poverty and one of the most energy inefficient housing stocks in Europe. In terms of energy efficiency, the UK housing’s walls came 7th out of the 11 countries analysed, while its roofs were ranked 8th, its floors 10th and its windows 11th.

Badly heated housing has significant impacts on health. In 2011, an analysis by Friends of the Earth highlighted the links between cold housing and poor mental and physical health:

“The main health conditions associated with cold housing are circulatory diseases, respiratory problems and mental ill-health. Other conditions influenced or exacerbated by cold housing include the common flu and cold, as well as arthritis and rheumatisms.”

However, people living in energy inefficient homes are often those least able to afford the necessary retrofits, such as insulation, new boilers and double glazing.

The rise and fall of the Green Deal

In 2013, the coalition government launched the Green Deal, a retrofitting programme that aimed to provide an affordable solution for low-income households struggling to keep their homes warm. However, it soon became clear that the Green Deal was too complicated for the energy efficiency sector to administer, and too hard for householders to understand. After three years of disappointing take-up, the scheme was scrapped in 2015.

With no replacement for the Green Deal on the horizon, agencies supporting fuel-poor households have been trying to fill the gap. The Trussell Trust, for example, has been opening “fuel banks” in towns and cities across the UK, providing vouchers for paying gas and electricity bills.  Important as they are, these initiatives cannot take the place of housing improvements.

An energy leap forward

The demise of the Green Deal left a gap in the UK’s retrofitting market. However, a recent initiative that shares some of the features of the Green Deal has shown early promise as a possible substitute.

The Energiesprong (“energy leap”) model has its origins in the Netherlands. Energiesprong is a network of organisations committed to urban and regional development. It brokered a deal between housing associations and builders to refurbish houses to net zero energy levels. This means the homes do not consume more energy for heating, hot water and electricity than they produce. Householders commit themselves not to use any more energy than an agreed amount. If they do, additional charges apply, but these are likely to be minimal thanks to the improvements in insulation.

So far, the Dutch scheme has proved successful; the first 800 retrofitted homes have performed better than expected, producing more energy than they consume. The tenants are very satisfied with the improvements and Dutch housing associations have committed to upgrade 111,000 homes under a wider roll-out.

Energiesprong in Britain

The Energiesprong concept is now being applied in the UK, where property developers are working with local authorities and social housing providers on prototypes.

Housing associations will finance the up-front costs of the work, including external wall insulation, roofing and renewables. These will be repaid by the energy cost savings resulting from the upgrade. Unlike the Green Deal, however, the Energiesprong concept is more straightforward and easier for consumers to understand, and refurbishments can be carried out within 10 days. In the UK, between 10 and 30 homes have been undergoing improvements in pilot projects during 2016, with a target of 5000 retrofitted homes by 2018.

The concept also has something to offer owner-occupiers; in addition to improving a property’s energy efficiency, Energiesprong also delivers a better-looking exterior. As Energiesprong UK director Arno Schmickler explained to Architects’ Journal:

“We are trying to position a high-quality, desirable product, to make your neighbours jealous – that really works.”

An off-the shelf retrofit?

The Energiesprong process in the UK must overcome significant challenges before it can achieve the levels of success seen in the Netherlands. Although it has secured European Commission funding, Energiesprong UK could achieve a much greater impact with government support. In addition, changes to planning guidance will be required to enable retrofitting without the need for explicit planning permission. The UK retrofitting sector must also make technical and cultural adaptations if it is to emulate the impact of their Dutch counterparts.

But if Energiesprong takes off in the UK, Arno Schmickler foresees the day when retrofitting could become as straightforward as choosing a new sofa:

“We want to position this where you could walk into, dare I say it, Ikea, and buy your Energiesprong solution while you’re kitting out your home with new furniture. ‘That’s how easy it should become.”

Read our other blog posts on energy efficiency in homes:

Smart-eco cities: how technology is addressing sustainability challenges in the UK

Looking down on densely packed buildings of New York

By Steven McGinty

As cities realise the need to improve sustainability, many are turning to innovative technologies to address challenges such as traffic congestion and air pollution. Here, the ‘smart agenda’, with its focus on technology and urban infrastructure, overlaps with the ‘sustainability agenda’ – usually associated with energy, waste management, and transport.

In 2015, an international research project – coordinated by the University of Exeter and involving teams from the UK, China, the Netherlands, France, and Germany – was launched to investigative how smart-eco initiatives can be used to promote the growth of the green economy. As part of this work, the report ‘Smart-eco cities in the UK: trends and city profiles 2016 was published.

Below we’ve highlighted some interesting case studies from this report.


Glasgow’s smart city approach has been described as ‘opportunistic’ (as opposed to strategy-led) by the report’s authors. New initiatives are often linked to creative organisations/individuals and competition funding, such as Future City Glasgow, which was awarded £24 million by the Technology Strategy Board (now Innovate UK).

Nonetheless, this has helped Glasgow become a smart city leader, not just in the UK, but globally.

Almost half of the £24 million Innovate UK funding was spent on the Operations Centre, located in Glasgow’s east end.  The new state-of-the-art facility integrates traffic and public safety management systems, and brings together public space CCTV, security for the city council’s museums and art galleries, traffic management and police intelligence. As well as helping the police and emergency services, the centre can prioritise buses through traffic (when there are delays) and has recently supported the Clean Glasgow initiative, a project to tackle local environmental issues, such as littering.

Intelligent street lighting was also a major part of Future City Glasgow. Three sections of the city have been fitted with new lighting: a walkway along the River Clyde; a partly pedestrianised section of Gordon Street; and Merchant City, a popular retail and leisure district. The new lighting includes built-in sensors which provide real-time data on sound levels, air quality, and pedestrian footfall. ‘Dynamic’ lights, which use motion sensors to vary lighting – increasing levels when pedestrians walk by – have also been introduced.


London’s smart city programme is linked to the challenges it faces as a leading global city. Its need for continuous growth and remaining competitive has to be balanced with providing infrastructure, services, and effective governance.

The Greater London Authority (GLA) is behind both the strategy, through the Smart London Board, and the practical delivery of various activities. Much of their work focuses on encouraging collaboration between business, the technology sector, and the residents of London. For example, the London Datastore, which includes over 650 governmental (and some non-governmental) data sets, plays an important role in ensuring the city’s data is freely available to all. Visitors can view a wide variety of statistics and data graphics, on areas such as recycling rates, numbers of bicycles hired, and carbon dioxide emission levels by sector.

In 2014, the Smart London District Network was established to explore how technology could be used in four regeneration projects: Croydon; Elephant & Castle; Imperial West; and the London Olympic Park. To support this, the Institute for Sustainability was commissioned to run a competition asking technology innovators to pitch innovative ideas for these projects. Winners of this competition included the company Stickyworld, who created an online platform which supports stakeholder engagement through a virtual environment, and Placemeter, who developed an intelligent online platform which analyses the data taken from video feeds and provides predictive insights.


Recently, the City of Manchester Council consolidated their smart city initiatives into the Smarter City Programme. The Smart-eco cities report explains that the programme draws on the city’s 2012 submission to the ‘Future Cities Demonstrator’ competition, focusing on the development of Manchester’s Oxford Road ‘Corridor’ around five main themes:

  • enhanced low carbon mobility
  • clean energy generation and distribution
  • more efficient buildings
  • integrated logistics and resource management
  • community and citizen engagement

Manchester’s approach to becoming a smarter city involves a wide range of partners. For instance, Triangulum is a €25m European Commission project involving Manchester and two other cities (Eindhoven and Stavanger) to transform urban areas into ‘smart quarters’.

In Manchester, the council-led project will integrate mobility, energy, and informations and communications technology (ICT) systems into the infrastructure along the Corridor. It will introduce a range of technologies into assets such as the University of Manchester Electrical Grid, with the aim of showing their potential for supplying, storing and using energy more effectively in urban environments. Data visualisation techniques, based on the use of real-time data, will also be developed.

In 2016, Manchester launched CityVerve, a £10 million collaborative project to demonstrate internet of things technologies. The project will involve several smart city initiatives, including:

  • talkative bus stops, which use digital signage and sensors, to provide information to passengers and provide data to bus operators on the numbers waiting for buses
  • air quality sensors in the street furniture
  • ‘Community Wellness’ sensors in parks, along school and commuter routes, to encourage exercise
  • a ‘biometric sensor network’, to help people manage their chronic respiratory conditions

Final thoughts

There is great excitement about the potential for smart city technologies. However, as is highlighted by the smart-eco cities report, many are limited in scale, short term, and based on competition funding. If we want to create sustainable cities, which meets challenges of the future, greater investment will be needed from both public and private sector.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other smart cities articles. 

Housing matters: our recent publications cover issues from homelessness to housing and health

tiny houses 4

By Heather Cameron

The Chartered Institute of Housing (CIH) annual conference and exhibition, the largest housing-focused event in Europe, takes place this week. Over the next three days the conference will examine and explore the political and policy environment, the economic outlook and the latest thinking across the sector.

A variety of topics will be addressed, including housing supply, housing policy, social housing, welfare reform, regeneration and homelessness. These topic areas feature extensively on our database, some of which we have also written about. So this is a good opportunity to highlight some of our recent publications in this area.

What we’ve published

Our most recent ‘In focus’ briefing looks at housing retrofitting, something that has been highlighted as essential for improving the energy efficiency of our housing stock. It considers the benefits of renovating domestic properties to improve energy efficiency and environmental performance and describes the features and technologies of retrofit, such as heat pumps, combined heat and power and various types of insulation. The environmental, economic and social benefits as well as the barriers are summarised. Recent developments concerning retrofit schemes introduced by the UK government and the devolved administrations are also described, and there are examples of good practice from the Netherlands, Sweden and the UK.

Last month we published Delivering solutions to tackle homelessness (Ideas in practice), which looks at the scale of homelessness across the UK and its causes, and provides innovative examples of projects and initiatives that are tackling the problem.

The examples of innovative approaches highlighted include:

We have also written a series of blogs on the topic of homelessness. These include a look at the Christmas Dinner campaign for the homeless run by Scotland’s not-for-profit sandwich shop, Social Bite, while also highlighting the recent increase in homelessness in Scotland and the UK, and the shocking number of homeless children at Christmas.

Another blog post looks at the problem of the hidden homeless and its financial and human costs.

Digital inclusion and the social housing sector is the topic of another ‘In focus’ briefing. This looks at the benefits of digital inclusion, the barriers to digital inclusion for social housing tenants, and how these might be overcome. It refers to a 2012 report which found that almost half of the UK’s adult population who do not use the internet live in social housing, suggesting digital exclusion is a particular problem in the sector. It includes examples of good practice and highlights the importance of digital inclusion in the context of welfare reform.

We also recently blogged on this topic, highlighting one of the examples of best practice featured in our briefing: a case study of a collaboration between Reading Room – a digital consultancy which joined the Idox Group in 2015 – and Catalyst, one of the leading housing associations in London and the South East. This collaboration highlights the potential of technology for improving communications between social housing providers and their tenants, and for encouraging more people to reap the benefits of going online.

Another topic we have looked at is the integration between housing and health. Housing conditions can affect the physical and mental health of people, and can contribute to many preventable diseases and injuries. The ageing population is also putting pressure on the NHS, and growing numbers of older people have to stay in hospital longer because their homes are unsuitable for their recovery. Our briefing notes that housing associations, local authorities and healthcare providers have been working on solutions to tackle these challenges, and provides case studies from London, Tyneside and Bristol as examples of greater collaboration between housing and health services.

The challenges of an ageing population for the housing sector has also been highlighted in our briefing on meeting the housing needs of older people. It indicates that there will be a need for: adaptations to existing housing stock; mainstream rented accommodation built to accommodate wheelchair users; and newly built specialist accommodation. Examples of good practice – including case studies of extra care housing from Calderdale Council, and adapting homes for older and disabled residents in Knowsley, Merseyside – are highlighted.

This is just a flavour of what we’ve recently covered on housing-related topics, and we will inevitably produce more as the sector responds to a time of change and uncertainty.

Some of our briefings are only available to members of the Idox Information Service.

Follow us on Twitter to see what developments in policy and practice are interesting our research team. 

What next for energy efficient homes?


Guest post, by Dr Alina Congreve, Centre for Cities, University of Hertfordshire, and
Dr Dan Greenwood, University of Westminster

The controversy surrounding the scrapping of the zero carbon target for new homes continues, despite its removal by the government in July 2015. The House of Commons Energy and Climate Change Select Committee report, published in March 2016, was highly critical of the government’s approach to energy efficiency and housing. There has also been a strong reaction to the closure of the Zero Carbon Hub at the end of March. The Hub was widely regarded as an exemplary model of collaboration between government, industry and third sector.

Critics of the government’s approach to new housing policy point out that the initial drivers behind the zero carbon target have not gone away. European requirements that all new buildings are ‘nearly zero’ energy by 2021 are still in place. The Climate Change Act requires a fall in emissions of 80% by 2050 (from a 2006 baseline). Given the limits to reduction from retrofitting existing buildings, emissions reductions from new build need to be even higher.

There is a widespread view within the sector that the most effective way to achieve energy efficient new homes is through regulation, supported by appropriate tools and training developed in collaboration with the industry. For planners working in local authorities, the options for requiring developers to go beyond the Building Regulations are severely curtailed. Following the Housing Standards Review, they can no longer require developers to build to higher levels of the Code for Sustainable Homes. Influencing new development through stronger regulations was a key part of many cities’ climate action plans.

In spite of this, local authorities are still able to set higher environmental requirements for commercial buildings and insist that developers build to BREEAM standards. When the costs and savings of regulation are calculated by the government the energy savings to office occupants are included in the calculations. However, when the costs of energy standards for new homes are calculated by the government, energy savings for households are not included. The current processes of reviewing policy are based on financial costs and benefits, but value judgements are made about which costs are included. The Housing Standards Review has created a long period of uncertainty for the industry. The transaction costs that result from this uncertainty, such as staff training or product development to meet a new standard that is subsequently withdrawn, are also not included in policy impact financial calculations.

Possible front cover image II

In the short-term, strengthening Building Regulations or modernizing regulatory tools such as the Standard Assessment Procedure (SAP) seem unlikely. Voluntary codes and standards can have an important complementary role to play alongside regulation. Some landowners who wish to go beyond the legal minimum find a benchmark developed by a third party valuable. Current examples can be found in Norwich, where the city council is using a combination of AECB and Passivhaus standards on sites that it owns and are being developed for housing. In the current market for new homes, consumer drivers are relatively weak and buyers and mortgage lenders rarely place a premium on energy efficiency or other sustainable features. There is, however, the potential to do more to change this situation. If a standard adds value to a property by appealing to buyers, then the business case to do more becomes much stronger.

These views are based on a report carried out for the  Royal Institution of Chartered Surveyors (RICS) Trust on the Future for policy and standards for low and zero carbon new homes. The report draws on over 70 interviews with key stakeholders in the industry. It is available free to download.

Alina Congreve is an Associate at the Centre for Cities at the University of Hertfordshire. An experienced sustainability and built environment professional, Alina has specialist expertise in a number of areas, including sustainability and new residential development and resource efficiency in construction.

Read our other blog posts on energy efficient homes:

The Aktivhaus: is this the future of sustainable living?

DEU, Stuttgart, Dokumentation Aufbau Pavillon Wei§enhofsiedlung, Werner Sobek Design GmbH , Fertigstellung: 2014 , DIGITAL 100 MB 8 Bit. - ©Zooey Braun; Veroeffentlichung nur gegen Honorar, Urhebervermerk und Beleg / permission required for reproduction, mention of copyright, complimentary copy, FUER WERBENUTZUNG RUECKSPRACHE ERFORDERLICH!/ PERMISSION REQUIRED FOR ADVERTISING!

Photo reproduced with permission of Werner Sobek Design GmbH , Fertigstellung: ©Zooey Braun

By James Carson

Earlier this year, we looked at a style of building known as Passivhaus, which is playing an important role in creating energy-efficient homes. Now, another concept – the Aktivhaus – is taking this approach even further, graduating from energy-saving to energy-generating homes.

The Aktivhaus concept

Like Passivhaus, the Aktivhaus has its origins in Germany. Stuttgart-based architect Werner Sobek defines Aktivhaus buildings as those which:

  • offset their annual total energy consumption in a sustainable manner;
  • anticipate and react accordingly to relevant changes both inside and outside the house;
  • continuously measure and optimise all energy streams.

Sobek’s idea has been realised in the form of a building called B10. This prototype Aktivhaus – prefabricated offsite and assembled in a single day – is located at the Weissenhof settlement in Stuttgart. It’s an appropriate site for applying a revolutionary concept – in 1927 the Weissenhof estate hosted a housing exhibition that included designs by leading lights in modern architecture, such as Le Corbusier and Ludwig Mies van der Rohe.

The Aktivhaus enacted

On the face of it, B10 is an 85 square-metre box with a full-length window. But its sophisticated design means the Aktivhaus can generate twice as much electric power from sustainable energy sources as it consumes. This means it can not only satisfy its own electricity needs, but can also power two electric cars and a neighbouring house built by Le Corbusier for the 1927 exhibition.

The ‘active’ element in the Aktivhaus is a mini computer, connected to the internet, that monitors weather forecasts and enables the house to respond accordingly, with different rooms heated or cooled at different times of the day. Other elements include a highly efficient heating system, web app-operated functions to control lighting and window blinds, and 17mm thick vacuum glazing whose three layers keep heat in and draughts out.

Werner Sobek believes that the Aktivhaus concept is not only applicable to new homes. “Our system is very helpful for old buildings,” he told the New York Times.

Some might feel it best to leave the imperfections as they are and not invest in major energy improvements and instead rely on the surplus energy from a ‘sister house,’ but the system can also help you decide to make modest changes to the windows or to improve the boiler.”

DEU, Stuttgart, Musterhaus Wei§enhofsiedlung, AWerner Sobek Design, Fertigstellung: 2014 , DIGITAL 100 MB 8 Bit. - ©Zooey Braun; Veroeffentlichung nur gegen Honorar, Urhebervermerk und Beleg / permission required for reproduction, mention of copyright, complimentary copy, FUER WERBENUTZUNG RUECKSPRACHE ERFORDERLICH!/ PERMISSION REQUIRED FOR ADVERTISING!

Photo reproduced with permission of Werner Sobek Design, Fertigstellung: 2014: ©Zooey Braun

Over three years, researchers will study B10’s performance as a real-life residence. The building can later be dismantled and reassembled elsewhere, and when it reaches the end of its life almost all parts of the Aktivhaus have been designed to be recycled.

With construction costs of €100,000 and the technology inside priced at a further €600,000, the Aktivhaus is hardly an affordable housing option. But eventual scaling up of production could drive those costs down.

In the meantime, the ideas coming out of the Aktivhaus project may influence those looking for ways to tackle the ongoing issues of housing shortages, climate change and fuel poverty.

The Idox Information Service can give you access to a wealth of further information on energy-efficient housing; to find out more on how to become a member, contact us.

Follow us on Twitter to see what developments in public and social policy are interesting our research team.

Further reading*

PassivHaus … a home for all seasons?

Thermal vision (energy-efficient retrofit for social housing block)

Warmer outlook (energy efficient housing)

Building sustainable homes

Footprint: three Passivhaus projects

Building the future: the economic and fiscal impacts of making homes efficient

*Some resources may only be available to members of the Idox Information Service

Goodbye Green Deal: the government’s decision to axe its energy efficiency scheme leaves a gap that will be hard to fill

By James Carson

The Green Deal is dead. Last month, the energy and climate change secretary, Amber Rudd, announced that no further applications for finance from the project would be accepted.

The Green Deal was launched by the coalition government in 2013 with the aim of improving energy efficiency in homes across England, Scotland and Wales. Under the programme, households could borrow up to £10,000 for household improvements such as double glazing or home insulation, and make repayments through their energy bills.

As well as addressing fuel poverty, the energy efficiency scheme was also regarded as having a crucial role in meeting the UK’s emission reduction targets.

But, almost from day one, the programme was criticised as too complicated for the energy efficiency sector to administer and too hard for householders to understand. The first round of Green Deal funding attracted fewer than 2000 applications.

Although take-up improved in subsequent years, the scheme was still poorly regarded, not helped by reports of botched installations. Last year the House of Commons Energy and Climate Change Committee concluded that the Green Deal had failed to live up to expectations, arguing that its planning was flawed, its funding inefficiently delivered, and its implementation poor, all made worse by inadequate communication.

What’s the alternative?

But although few will mourn its passing, the sudden death of the Green Deal, with no replacement, has generated angry responses.

Julie Hirigoyen, chief executive of the UK Green Building Council, said:

“While the Green Deal was by no means perfect, the principle of enabling households to install energy-saving measures without paying upfront costs was sound.”

Greenpeace UK chief scientist Dr Doug Parr commented:

“Ditching measures to improve energy-wasting homes will simply leave people to pay more for their bills, with low-income families bearing the brunt of it.”

There’s little doubt that many of Britain’s homes need to improve their energy efficiency. In 2012, 357,000 homes in England had the worst energy ratings of F and G, and more than four in 10 of those were classed as “fuel poor”.

Badly insulated housing has significant impacts on health. Earlier this year, an analysis by Friends of the Earth suggested that cold homes lead to many more people in England than Sweden ending up in hospital with breathing problems, despite England’s much milder weather.

Announcing the Green Deal’s demise, Amber Rudd promised to work with the building industry and consumer groups to create a new system. The government has also commissioned an independent review to look at standards, consumer protection and the enforcement of energy efficiency schemes, to ensure that any future arrangements provide better value-for-money for taxpayers and consumers.

At the moment, another government energy efficiency scheme – the Energy Company Obligation (ECO) remains in operation. Under the ECO the big six energy suppliers are required to help vulnerable householders save on their energy bills and carbon emissions. However this scheme is due to be wound up in 2017.

With no replacement for the Green Deal on the horizon, the energy efficiency sector has been suggesting alternatives, including:

  • stamp duty and council tax rebates for homebuyers installing energy efficiency measures
  • setting aside some of the government’s projected £100bn infrastructure spending for insulating homes
  • A new ‘pay as you save’ scheme similar to the Green Deal, but one which offers more measures and is easier to administer.

In the meantime, industry, householders and environmental campaigners must wait for the government’s next move on energy efficiency.

Follow us on Twitter to see what developments in public and social policy are interesting our research team.

We’ve made some of our member briefings freely available. View a selection of our environment publications on our website.

PassivHaus … a home for all seasons?


Image by Pichler Haus, released under a standard Creative Commons Licence

By James Carson

This week, eight contenders are waiting expectantly for the results of the 2015 UK PassivHaus Awards. The awards celebrate sustainability and good building design, with the focus on the PassivHaus concept.

What is PassivHaus?

PassivHaus is an approach to building that is designed to eliminate the need for traditional central heating systems by combining:

  • excellent levels of insulation
  • passive solar gains and internal heat sources
  • excellent level of airtightness
  • good indoor air quality, provided by a whole house mechanical ventilation system with highly efficient heat recovery.

Since its small beginnings as a German-Swedish collaboration in the 1980s, over 30,000 buildings around the world have been built using the PassivHaus approach.

The benefits of PassivHaus

Energy efficiency lies at the heart of a PassivHaus building. The PassivHaus Institut, which plays a leading role in promoting the concept, has claimed that these buildings can achieve energy savings of up to 75% compared to average new builds.  PassivHaus proponents also claim that the buildings have significantly better levels of air quality, and greatly reduce carbon emissions.

Practical issues

While the long-term energy savings are impressive, PassivHaus buildings are not without their critics. Among their concerns:

  • Cost: The higher standards of PassivHaus buildings, including triple-glazed windows, mechanical ventilation systems and vacuum insulation, all add to the costs of PassivHaus construction. The consensus seems to be that PassivHaus will increase build costs by 15% to 25%, and it’s believed that the higher costs have limited the concept’s application to a handful of private housing developments in the UK.
  • Construction time: Because of the optimum performance demanded of them, PassivHaus buildings can take longer to install. In the Republic of Ireland, concerns about slower construction times during a serious housing shortage has prompted the government to oppose plans by local authorities in Dublin to make the PassivHaus standard mandatory for new homes.  PassivHaus proponents in Ireland have condemned the moves as short-sighted, and claim that PassivHauses won’t slow down construction.
  • Adaptability: Another criticism of the PassivHaus concept is that it’s not readily adaptable, and that structural alterations may interfere with the integrity of a PassivHaus building.

A building or a lifestyle?

There have also been claims that residents may themselves have to adapt to PassivHaus living.

“Building a house to this standard means agreeing to live a certain lifestyle, which if lived to the book can work very well, and has been proven to do so time and time again. You must appreciate, however, that building such a home is a lot of trouble to go to if ultimately you do not want to live the PassivHaus lifestyle.” (The Green Home)

However, PassivHaus supporters dismiss the idea that these buildings are too complicated to maintain:

“The ventilation system, not common in conventional buildings, is user-friendly and easy to operate with fewer controls than a normal television.” 

PassivHaus in the UK

The PassivHaus concept was slow to take off in Britain, but more and more UK architects have become interested in PassivHaus since 2013, when the government committed to implementing zero carbon homes from 2016. The zero carbon homes standard will require house builders to decrease all carbon emissions from energy arising from fixed heating and lighting, hot water and other fixed building services, such as ventilation, in new homes. It’s worth noting, however, that the zero carbon standard is less strict than PassivHaus.

The PassivHaus approach is not limited to residential properties. Among the buildings shortlisted for the UK PassivHaus awards this year are a primary school, an office and an education centre.

Elsewhere, the University of Leicester’s Centre for Medicine is currently under construction, and is set to be the UK’s largest PassivHaus building. It’s estimated that the high levels of insulation and a state-of-the-art heating, cooling and ventilation system will reduce the university’s energy bill for its new teaching and research facility by 80%, compared to the previous building.

PassivHaus may also be able to contribute to alleviating Britain’s housing crisis. A social housing project currently under construction in Rainham, east London, aims to demonstrate that PassivHaus is a commercially viable solution to the UK’s shortage of affordable homes. The builders of the 51-home project claim that this will be the first PassivHaus development to be let entirely at affordable rents.

Future prospects

Inadequate heating, poor insulation and high energy costs have become significant factors in the rise of fuel poverty among households in the UK. At the same time, there is a pressing need to reduce dependence on fossil fuels. So, it may be that the buildings being showcased at this year’s PassivHaus awards may come to be seen as ahead of their time.

The Idox Information Service can give you access to a wealth of further information on housing; to find out more on how to become a member, contact us.

Further reading*

 Footprint: three Passivhaus projects, IN Architects’ Journal

Lancaster co-housing (a Passivhaus development), IN Products in Practice

First look: only way is social for Essex Passivhaus homes (energy efficient social housing), IN Property Week

Keeping cosy in Rainham (affordable housing scheme built to Passivhaus standards), IN RIBA Journal

Lessons from Germany’s Passivhaus experience 

*Some resources may only be available to members of the Idox Information Service