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Housing Improvement: Energy

Question for Department for Business, Energy and Industrial Strategy

UIN HL15145, tabled on 21 April 2021

To ask Her Majesty's Government what funds (1) have been, and (2) will be, allocated to local authorities to enable them to retrofit domestic premises to increase their energy efficiency.

Answered on

29 April 2021

The Green Homes Grant Local Authority Delivery (LAD) scheme, which supports energy efficiency and low carbon heat projects for low-income households, is being delivered in three phases:

  • Phase 1A; around £74 million was allocated to 55 projects in over 100 Local Authorities in October 2020, to be delivered by June 2021.
  • Phase 1B:  around £126 million has been allocated to 81 projects in over 200 Local Authorities, for delivery by September 2021.
  • Phase 2:  funding of £300 million has been allocated to the five Local Energy Hubs, who will work with Local Authorities in their region to deliver projects by December 2021.

The 2019 Conservative Manifesto committed to a £3.8bn Social Housing Decarbonisation Fund (SHDF) over a 10-year period, to improve the energy performance of social rented homes.

The Summer Economic Update announced the SHDF Demonstrator project, launched in 2020, which has awarded £62m of funding to social landlords across England and Scotland to test innovative approaches to retrofitting at scale, seeing over 2300 social homes improved to at least EPC band C.

The Autumn 2020 Spending Review committed £60m of funding for the first wave of the £3.8bn manifesto commitment in financial year 21/22.

The Government has since committed an additional £300 million on green home upgrades through Local Authorities. This extension will be through an increase in funding to Local Authorities via LAD and the SHDF wave one, and whilst the schemes are currently being designed, the focus remains on upgrading the worst-performing homes with energy efficiency installations and low-carbon heating.