Fueling Change: How local authorities can unlock the benefits of the Warm Homes Grant

The Department for Energy Security and Net Zero (DESNZ) announced the Warm Homes: Local Grant scheme (Warm Homes Grant) will begin delivery in April 2025 as part of the government’s Warm Homes Plan to upgrade five million homes over the next five years in a bid to cut bills, deliver warmer homes and deal with fuel poverty.

Scope of the Warm Homes Grant

By enabling local authorities to provide energy performance upgrades and low carbon heating to certain households in England, the Warm Homes Grant seeks to deliver progress, firstly towards the statutory fuel poverty target for England, and secondly towards Net Zero 2050 and the Carbon Budgets.

The Warm Homes Grant will deliver upgrades to households in England, which are privately-owned, low-income and have an EPC rating between D and G.

What does it cover?

Once the Warm Homes Grant is in delivery, local authorities will be able to install a variety of possible energy performance measures and low carbon heating to eligible homes.

The Warm Homes Grant is capped at £15,000 for energy performance and £15,000 for low carbon heat per home.

Energy performance measures available to local authorities include, but are not limited to, insulation measures, heating controls, solar panels, double/triple glazing and energy efficiency doors.

Low carbon measures available include air source heat pumps, wet central heating and high retention storage heaters, among others.

What can local authorities do?

An expression of interest window for local authorities to be allocated Warm Homes Grant funding opened yesterday (16 October 2024).

All eligible local authorities that complete the expression of interest will be allocated funding to some degree.

Although there is no competition element to the Warm Homes Grant in this way, the assessment will instead focus on the amount of funding to be allocated.

In their expressions of interest, local authorities will need to provide an outline of their proposed project, including any consortia members, their high-level plans for procurement, resourcing and mobilising their project, and their past performances on previous schemes.

The policy guidance makes some suggestions for local authorities to consider ahead of the expression of interest.

The suggestions include whether they wish to deliver the project individually or as part of a consortium, the intended procurement approach to the project, plans and timelines to procure, resource and mobilise the project, and whether the project has sufficient resource in place and any timelines for obtaining that resource.

Allocation will be followed by a mobilisation period before a delivery assurance check to ensure all local authorities meet the minimum criteria for successful delivery.

The majority of capital Warm Homes Grant funding will be drawn down in portions throughout the delivery window to upgrade batches of homes, ensuring local authorities receive the right amount of funding at the correct point of use.

Once allocated funding, local authorities will procure and manage their installer supply chain individually or in consortium projects.

As well as policy guidance, DESNZ has issued guidance on allocations and eligible postcodes.

Sharpe Pritchard’s energy team is fully conversant on local authority requirements and procedures in relation to government grant funding.

Local authorities should consider seeking expert advice to maximise this funding opportunity. Speak to our team for the latest guidance.

Oliver Slater is a Junior Associate and Steve Gummer is a Partner at Sharpe Pritchard LLP.

This video is for general awareness only and does not constitute legal or professional advice. The law may have changed since this page was first published. If you would like further advice and assistance in relation to any issue raised in this article, please contact us by telephone or email enquiries@sharpepritchard.co.uk