Over 50,000 households to get warmer, greener homes in £562 million boost

The £562 million government funding will enable over 200 local authorities across England and Scotland to fund a nationwide upgrade of the UK’s least energy efficient and fuel-poor homes. This will help to transform over 50,000 low-income households and social housing properties and support over 8,000 energy sector jobs annually, including local plumbers, builders and tradespeople.

The schemes will include measures such as cavity wall, underfloor and loft insulation, and replacing gas boilers with low carbon alternatives like heat pumps where appropriate. It will also include installing solar panels on many social housing, helping residents on low-incomes create their own green energy to power their homes.

UK Business and Energy Secretary, Kwasi Kwarteng, said:

We are ensuring households across the country enjoy warmer homes that are cheaper to heat and emit fewer emissions – all while creating new work for local plumbers, builders and tradespeople.

This is an initial down payment on the UK government’s plan to invest over £9 billion into eradicating fuel poverty, improving the lives and homes of low-income households. This is yet another important step we are taking to eliminate our contribution to climate change and build back greener from the pandemic.

Housing Minister Rt Hon Christopher Pincher MP said:

The challenges involved in improving the energy efficiency of our homes and reducing carbon emissions are substantial. However, the investment being announced today along with our Future Homes Standard will help ensure that existing and newly built homes will be fit for the future, better for the environment and affordable for households to heat using low carbon energy.

Emissions from domestic properties currently account for around 25% of the UK’s carbon emissions and is a priority area for the government. These green home projects will help cut over 70,000 tonnes of carbon from the atmosphere annually- the equivalent of the total direct and indirect carbon footprint produced by around 9,000 UK households.

This is the latest step in the government’s plan to eradicate fuel poverty, manage energy bills, and reduce carbon emissions from domestic buildings. This will help both low-income families and social housing tenants, with 39% of social housing believed to be below Energy Performance Certificate C in England.

As part of the scheme, funding will go to every English region and Scotland, including:

• Aberdeen City Council has been awarded £2.2 million to retrofit 100 homes, creating a decarbonised neighbourhood, with tougher wall insulation, new air-source heat pumps and solar panels, to keep residents powered through green energy through the winter months
• Argyll & Bute Council has been awarded £1.2 million to retrofit 130 homes across 12 islands, supporting at least 38 local jobs. The council will work with award winning renewable energy provider OVO (S) Energy Solutions Ltd and Argyll Community Housing Association to deliver the project
• South Tyneside Council alone has been awarded £5.35 million of to provide a county-wide upgrade of 1,570 properties within the towns of South Shields, Hebburn and Jarrow and the villages of Boldon, Cleadon and Whitburn
• Leeds City Council has been awarded almost £10 million to retrofit up to 600 homes across the city-region. The One project from the local council will work with Better Homes Yorkshire and ENGIE Regeneration to upgrade 190 of these homes in the Holt Park area of Leeds, helping residents save up to 70% on their energy costs and supporting at least 45 local jobs
• Manchester City Council has been awarded £3.12 million to upgrade 164 homes across the city, supporting at least 65 local green jobs in plumbing, construction and engineering. They will work with One Manchester and E.ON energy supplier to create the country’s first decarbonised neighbourhoods
• Mansfield District council in Nottinghamshire has been awarded just under £1 million to retrofit 140 homes and has been able to guarantee 76 permanent job positions and create 5 new apprenticeship positions for young workers under 23 years old, all employees residing in or around Mansfield
• Wychavon District Council has been awarded £5.8 million to upgrade 236 rural and sheltered properties within the Wychavon District Council, Birmingham and Staffordshire areas. The local council will work with Rooftop Housing Group, Trent and Dove Housing, Citizen Housing Group and Trident Group to install energy efficient solar and solar thermal panels and install external wall and loft insulation, supporting 100 local jobs
• Portsmouth City County has been awarded £9.4 million to upgrade 1,200 homes across the Hampshire county to be more energy efficient. The local council will help residents with a combined household income below £30,000 and an Energy Performance Certificate (EPC) rating of E, F or G to address fuel poverty and reduce the county’s carbon emissions
• Fenland District Council in Cambridgeshire has been awarded £4.5 million to upgrade 160 social housing properties across the Cambridgeshire county, supporting 68 local green jobs in partnership with Tonbridge & Malling Borough Council and Clarion Housing Group
• Cornwall County Unitary Authority and Cornwall Council have been awarded a total of £2.5 million to find innovative approaches to retrofit up to 300 homes across several rural clusters across the county, supporting at least 42 local jobs
• £19.4 million has been awarded to Royal Borough of Kensington and Chelsea in partnership with London School of Economics and Build Test Solutions to upgrade 535 low-income homes on the Lancaster West Estate. Following the Grenfell Tragedy, a commitment was made by all levels of government to work with the residents of Lancaster West Estate and transform it into a model carbon-neutral 21st century estate. Over 3 different projects, the scheme will install wall insulation and other low-carbon energy sources and support 500 local jobs

These schemes consist of the £500 million Local Authority Delivery (LAD) Fund, a component of the Green Homes Grant, that will help households with an income of under £30,000 in England save hundreds of pounds each year by making them better insulated. A further £62 million Social Housing Decarbonisation Fund Demonstrator, which will explore innovative ways to deliver deep retrofits of social housing, will help to bring down the cost so it can be scaled up and rolled out on homes across the UK in the years ahead.

The government committed a further £60 million of funding for the Social Housing Decarbonisation Fund at the Autumn 2020 Spending Review and will be available in financial year 2021 to 2022.

The Local Authority Delivery scheme aims to work with local authorities to ensure the money is targeted at those who need it most, including those living in social or privately rented accommodation.

Notes to editors

• see the list of projects awarded funding under the Local Authority Delivery scheme so far
• see the list of projects awarded funding under the Social Housing Decarbonisation Fund Demonstrator (SHDF)
• the Social Housing Decarbonisation Fund Demonstrator project, launched in 2020, is an initial £62 million to demonstrate innovative approaches to retrofitting social housing at scale and upgrading the energy performance of poorer-performing homes, matched with a further £84 million from Local Authorities and Housing Associations, bringing the total invested to £146 million and allowing over 2,300 homes to be upgraded. The Autumn 2020 Spending Review committed a further £60 million of funding for the SHDF for 2021 to 2022
• the LAD Scheme aims to deliver energy efficiency upgrades to low income and low energy efficiency rated homes, including those living in the worst quality off-gas grid homes. Funds under this scheme will enable local authorities in England to support low-income, fuel-poor households in their local area
• the LAD scheme is being implemented over 3 phases:  
  • for Phase 1A, grants totalling over £74 million have been allocated at the end of 2020 for 55 projects which aim to upgrade the energy efficiency of around 10,000 low-income households in over 100 local authorities across all regions in England
  • for Phase 1B, BEIS has allocated grants of around £126 million for 81 projects in over 200 local authorities in England for delivery by September 2021. They will upgrade around 15,000 homes
  • for Phase 2, we have now allocated £300 million to the 5 Local Energy Hubs, who will work with the local authorities in their region to deliver energy efficiency upgrades to around 30,000 homes across England by December 2021
• alongside the Local Authority Delivery schemes and the Social Housing Decarbonisation Fund, the government is committing an additional £150 million through the Home Upgrade Grant to help some of the poorest, off gas-grid homes become more energy efficient and cheaper to heat with low-carbon energy