In July 2020 the Chancellor announced a £2 billion Green Homes Grant scheme to upgrade homes across England. Under this, £500 million funding will be allocated to local authorities through the Local Authority Delivery (LAD) scheme, to improve the energy efficiency of homes of low-income households, helping reduce fuel poverty, phasing out high carbon fossil fuel heating, and delivering progress towards the UK’s commitment to net zero by 2050.
The LAD scheme aims to raise the energy efficiency of low income and low energy performance homes (those with energy performance certificate (EPC) ratings of E, F or G, although Band D is also in scope in Phase 1B), including off-gas grid homes.
In the initial competition (Phase 1A), launched August 2020 with a delivery deadline of March 2021, BEIS allocated £76 million of funding to 57 LA projects. Read the full list of successful Phase 1a local authorities bids.
In this second phase (1B) we invite LAs, working with their local partners, to apply for funding. We welcome proposals from:
LAs who did not submit a proposal under Phase 1A
LAs that were successful under Phase 1A and which have new or scaled up projects to upgrade additional homes over spring and summer 2021
LAs that were unsuccessful under Phase 1A. BEIS has provided feedback so that those LAs can update their applications
Key policy clarifications and updates between Phase 1A and Phase 1B are summarised below.
We plan to allocate a further £300 million through Local Energy Hubs for regional delivery commencing in 2021.
Entering a bid
All local authorities in England are eligible to submit a bid:
- read the application guidance
- attend a Q&A webinar if you think this would be useful (see dates in guidance)
- submit a short optional Expression of Interest by 6 November 2020, 12 noon (see the guidance)
- complete the application form
- submit the application by 4 December 2020, 12 noon
- we will contact local authorities individually if successful, and publish the list of successful bids on GOV.UK
- we have published a draft Memorandum of Understanding (MoU), which is subject to change. The final version will be issued to successful bidders in January 2021
- funding will be allocated to successful projects by the end of January 2021
- projects must be completed by 30 September 2021
Phase 1B: key updates
We used LA feedback and lessons learned from Phase 1A to improve the application process and delivery for Phase 1B. An outline of clarifications and updates is listed here: further detail is available in the guidance document.
- projects should continue to focus on the least energy efficient homes (those rated E, F or G) but EPC D-rated homes can also be included. However we will assess bids on the basis of strategic fit and will favour those with a focus on homes with EPC ratings of E-G. Homes with an EPC rating of Band A, B or C are not eligible for the scheme
- installers of energy efficient measures covered by PAS2030:2017 must be certified to PAS2030:2017 for those measures and must install those measures in accordance with the standard. However, this is a minimum requirement, and the use of PAS 2035:2019 is considered best practice. It is not a requirement for energy efficiency installers to be Trustmark-registered, but bids using Trustmark-registered installers (or installers who plan to register before LAD Phase 1B delivery commences) will score higher in the Delivery Assurance assessment, and any LA not using Trustmark-registered installers will need to provide as part of their application detailed assurances on their processes for auditing and compliance and for ensuring financial and consumer protection
- funding must be targeted at low income households likely to be in fuel poverty, for which LAs can continue to use the criteria of a combined household annual income of no more than £30,000 gross, before housing costs and where benefits are counted towards this figure (as in Phase 1A), or use alternate methodologies that clearly evidence they are targeting low income households likely to be in fuel poverty. An alternate methodology may include total household incomes above the £30,000 threshold, for example in certain areas where higher housing costs mean the resultant household income after housing costs is likely to be below £20,000, or where the household composition means that incomes are stretched among many dependent children.
Updates to the application process
- the application window has been extended to 6 weeks, compared to 4 weeks in Phase 1A, to help LAs arrange for more consortia bids
- to reduce barriers to applications based on minimum bid amount, applications are now subject to a minimum bid of £250,000, compared to £500,000 in Phase 1A
- to shape our understanding of the overall quantum of bids expected against our target, we are asking LAs to submit an Expression of Interest (EOI). This is not a prerequisite for application, but it will help inform planning for funding allocation. As outlined in section 4.1 of the guidance, we ask you to submit a short form by 6 November, 12 noon, stating the lead LA name; whether applying as a consortium and if so, all LAs involved; intention to submit a proposal; anticipated value of bid; anticipated number of home upgrades if known; and anticipated delivery partner(s) if known
- in Phase 1A we asked LAs to provide a high-level timeline of the project, up until the final delivery date. In Phase 1B, we ask LAs to provide a more detailed delivery plan (table provided in the application form), setting out activities, milestones, cumulative amount spent and forecast of homes upgraded, in relation to each month of delivery
If you have questions about the process, application form or guidance, please contact LAD.Project@beis.gov.uk.