Summary
These Regulations amend the Home Energy Efficiency Scheme (England) Regulations 2005, applying to England only. Key changes include: adding a definition of 'mobile home'; granting the Secretary of State power to re-allocate funds within a financial year; raising the eligibility age threshold from 55 to 63 for non-mobile homes; expanding and specifying eligibility criteria based on receipt of various benefits (child tax credit, income-related employment and support allowance, income-based job seeker's allowance, income support, state pension credit, working tax credit) with income thresholds (£15,860); and adding definitions for 'parental responsibility', 'qualifying child', and 'relevant income'.
Reason
This regulation exemplifies government's propensity to substitute political judgment for market mechanisms. The scheme imposes costs on all energy consumers through cross-subsidies while creating perverse incentives: householders延迟 (delay) improvements hoping for future grants, energy companies optimize for subsidy capture rather than genuine efficiency, and the complex eligibility criteria based on arbitrary age thresholds and benefit-receipt rules generate substantial administrative overhead that diverts resources from actual improvements. The treatment of mobile homes differently from other dwellings, and the precise income thresholds (£15,860), reflect bureaucratic stipulations rather than consumer sovereignty. Hayek would observe that such central planning cannot capture the dispersed knowledge of individual circumstances; Friedman would note that price controls (subsidies distort price signals) and that the scheme perpetuates a misallocation of capital by directing it based on political criteria rather than genuine need or market demand. The £15,860 income threshold and age 63 cutoffs are arbitrary figures that will become increasingly misaligned with reality, requiring future amendments rather than allowing organic adjustment.