The winter fuel payments scheme has been criticised by the Audit Commission for not doing enough to curb carbon emissions. The commission has labelled the current system a ‘missed opportunity', as £2.7bn is paid out every year to cover fuel bills, while no incentives are in place to reduce carbon emissions. In a new report – entitled Lofty ambitions – the role of councils in reducing CO2 emissions – the commission identified measures which could tackle emissions from homes ‘quickly and cheaply'. These emissions are currently responsible for one-third of the nation's carbon footprint. According to the commission, the measures such as insulating, re-glazing and modernising homes would enable councils to help the four million people who cannot afford to heat their homes, while bringing a much-needed boost to local economies. Michael O'Higgins, chairman of the commission, said a one-off improvement in energy efficiency would cut household bills. He said: ‘Reducing emissions now will be far less costly than adapting our world to the consequences in the future.' Mr O'Higgins added that the move could cost around £50bn, but said it would provide better value than constantly supporting those who need it every winter. Some councils have blamed the large number of funding streams for creating confusion. But the commission praised those authorities which have been ‘greening' residents' homes and championing low carbon technologies. The report pointed towards a number of council projects, including a £3m scheme in Kirklees, which provides interest-free loans to residents for renewable energy technologies. Croydon LBC's cavity wall insulation project was also praised for offering discounts for home improvements, while rewarding participating residents with a £100 credit towards council tax bills. Mr O'Higgins called on all councils to act as a catalyst and lead their communities to take a decisive lead in tackling climate change.