To ensure Warm Front offers value for money, Defra commissioned two independent studies from White Young Green (WYG).
The first report, Quality assurance assessor’s report: central heating installation costs and charges appraisal, published in July 2007, looked at the cost of installing a new gas central heating system in a property under Warm Front.
The second, Warm Front management assessment - oil and gas installation price review, published in January 2008, looked at two issues: the costs of installing a replacement boiler (rather than a full central heating system) and new oil central heating systems under Warm Front.
The studies confirmed that Warm Front gives good value for money compared with the wider market – in terms of installation costs and the price of components. One point to note, however, is that Warm Front prices remain consistent, regardless of fluctuations in demand – whereas in the private sector, contractors may cut their prices during slack periods, and temporarily become cheaper than Warm Front.
The National Audit Office’s recent 'Value for money' report on the scheme suggests that while gas and oil boiler replacements remain competitive with industry prices, they are at the higher end of this range.
Quality Assurance Assessor’s Report
WYG is the independent quality assurance assessor for the Warm Front Scheme. The Department commissions WYG to carry out routine reviews of the management of the Warm Front Scheme. The last two available reports are from October 2009 and April 2009.
The October 2009 report covers eaga’s management of the transition to the renegotiated contract, including findings on levels of customer satisfaction. Headline results of WYG’s customer survey were:
- 97.6% of all applicants would recommend the Scheme to friends
- 90% of all respondents were satisfied with the Scheme’s delivery
- 76% of those who did make a comment or complaint also confirmed that they would recommended the Scheme to a friend
- 91% of those asked agreed that the Scheme had benefited their personal or family health
DECC is currently in negotiations with the Warm Front scheme manager, eaga plc, about improvements that can be made to the current contract to deliver the scheme. A number of changes have now been agreed to the service procurement and delivery arrangements, including opening up the scheme to greater competition through liberalisation of both the equipment and installation supply chains, leading to improved value for money. We will announce details of these new arrangements once they are finalised.
We are also looking closely at the existing eligibility criteria to ensure those most in need are being helped.
Warm Front also offers a range of additional benefits to consider when comparing it with costs in the wider marketplace. For example:
- Warm Front offers a comprehensive service, including a two-year warranty, emergency breakdown cover after installation and (on gas systems) two service visits
- it insists on stringent standards of health and safety, environmental protection and quality
- it complies with all current building regulations and appropriate British Standards.