Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 15
15
Paragraph: 71
Future retrofitting schemes will be needed to incentivise the public to switch to low carbon...
Conclusion
Future retrofitting schemes will be needed to incentivise the public to switch to low carbon heating. Such schemes should be put in place after a thorough consultation with stakeholders, including with the public. We believe the following five principles would provide a solid foundation for future schemes: • local authorities should have a major role; • the funding provided to local authorities should primarily be allocated without using competitive bidding; Local government and the path to net zero 55 • schemes should be adapted to different types of housing and income groups; • schemes should be long-term in duration to provide certainty for the public and suppliers, and to ensure a skilled and qualified workforce is built up to safely install the necessary equipment; and • schemes should be clear and easily accessible.
Paragraph Reference:
71
Government Response
Acknowledged
HM Government
Acknowledged
The Government has allocated a total of £1.1 billion to the Home Upgrade Grant, with delivery taking place from early 2022 to March 2025. The Home Upgrade Grant will provide energy efficiency upgrades and low-carbon heating to low-income households living off the gas grid in England to tackle fuel poverty and meet net zero. Local authorities will play a key role in delivering this funding. The Local Authority Delivery (LAD) Scheme will provide energy efficiency upgrades to low-income households via local authorities, using existing or newly procured services from certified installers. The scheme is prioritising homes with low EPC ratings of D, E, F and G. All procurement or contracts to supply services under the LAD scheme will be carried out at local authority level. Installers wishing to provide services under the LAD scheme should contact the relevant local authority. The Social Housing Decarbonisation Fund (SHDF) will upgrade a significant amount of the social housing stock currently below EPC C up to that standard. It has already awarded £61 million to social landlords across England and Scotland through the SHDF Demonstrator project to test innovative approaches to retrofitting at scale. The Government launched Wave 1 of the SHDF in August 2021. It will provide up to £160 million funding in the financial year 2021-2022, delivering up to January 2023. The bidding window closed on 15 October and the outcomes of bids will be announced soon. Both the Heat and Buildings Strategy and Net Zero Strategy announced that £800 million has been committed for the SHDF as part of the 2021 Spending Review process. This brings the total committed funding for the SHDF and associated demonstrator to just over £1 billion. Regarding funding for local authorities more generally, as outlined in response to recommendation 3, the Net Zero Strategy set out the Government’s intention to explore how we could simplify and consolidate funds which target net zero initiatives at the local level through the Net Zero Forum. We have also committed to working across departments to explore how we can give certainty to investment in longer-term programmes supported by regeneration initiatives. On competitive bidding, many schemes are designed with competitive bidding processes to ensure optimum value for money. We have provided capability and capacity support to local authorities through the Local Net Zero programme as we know that some local authorities are better able than others to put proposals together. For example, local authorities receive ongoing capability and capacity support from the Local Net Zero Hubs (previously known as the Local Energy Hubs), the Technical Assistance Facility for the SHDF and the Public Sector Low Carbon Skills Fund to help them access the Public Sector Decarbonisation Scheme.