As we enter the colder months, many people will be facing an “eat or heat” choice as energy and shopping bills soar to extraordinary levels. Now the government has made £700m of grant funding available to local authorities in England to ease the financial burdens facing households and provide energy efficiency upgrades to support improved health and wellbeing.
The current cost of living crisis has led to households across the country facing unprecedented pressures on their energy bills, with energy analysts making predictions that prices are set to rise again next year.
Households will now face tough choices, as growing rents and mortgage costs coupled with rising interest rates, energy bills and food prices are forcing many to choose between giving up a meal or heating their home.
Reports have found that nearly a quarter of UK adults ‘won’t turn on heating this winter’ which will undoubtedly have an impact on the welfare of families, disproportionately impacting society’s poorest and highlighting the stark link between a home’s energy efficiency and the likelihood of slipping into fuel poverty.
Now, more than ever, there is a need to retrofit our existing housing stock to deliver essential improvements to the quality of our homes for the benefit of current and future generations.
The Department for Business, Energy and Industrial Strategy (BEIS) has launched the Home Upgrade Grant Phase 2 (HUG 2) scheme, making up to £700m of funding available to local authorities in England to upgrade low-income, energy inefficient homes not heated by gas.
All local authorities, combined authorities and Net Zero Hubs in England are invited to apply, either individually or as part of a consortium. The scheme’s challenge fund model means applications will be assessed against a minimum set of criteria, and all successful applicants will be able to receive some funding.
HUG 2 is the second phase of the Home Upgrade Grant which builds on the success of the scheme’s first phase that has already allocated £218m to 42 projects covering over 200 local authority areas.
Unlike other existing government retrofit funds such as the Social Housing Decarbonisation (SHDF), HUG 2 is targeted at privately owned properties – filling an important gap in the journey towards net zero. Private rented sector dwellings are also eligible but are limited to landlords with a portfolio of four properties or fewer, who are required to contribute one third of the total cost of any upgrades.
What’s more, free one-to-one support is available via the Home Upgrade Hub, a platform offering technical support for all applicants interested in accessing funding under HUG 2.
It is providing a range of services and advice that have been developed by leading housing retrofit and grant application experts from Turner & Townsend, making technical support available to local authorities at all key stages during the development of their applications.
By transitioning to low-carbon heating systems, councils will be futureproofing homes and helping progress the UK’s target to reach Net Zero by 2050. Phasing out off-gas grid fossil fuel heating will help to build energy independence and protect households from high and volatile fossil fuel prices.
Research by the Financial Conduct Authority (FCA) recently found that around 7.8 million people were finding it a heavy burden to keep up with their bills, an increase of 2.5 million since 2020. HUG 2 offers support to the most vulnerable households at this critical time and will provide financial assistance to lower energy bills by installing energy saving measures and, where appropriate, low carbon heating.
To streamline the grant process, applicants to HUG 2 will first be asked about their project's size, questions on commercial and delivery assurance, as well as their approach to targeting low-income households. If successful at this stage, BEIS will award total funding for the project in principle, which can then be drawn down on throughout the lifetime of the project. Furthermore, 20% of funds will be granted as an upfront payment to help councils resource and mobilise their projects, helping them to identify, assess and sign up eligible households.
There will be two rounds of assessment where local authorities can be awarded funding on a first-come-first-served basis. The submission deadlines for these assessment rounds are fast approaching, on 18 November 2022 and 27 January 2023.
Councils can maximise the grant opportunity in front of them now to take pressure off people’s already stretched resources and increase comfort and affordability for residents at a time of ever-increasing strife.
It’s only with the continued commitment of forward-thinking leadership that we can make our homes more energy efficient, healthy and affordable. Through shared ambition and accelerated investment, we will create a growing, self-sustaining retrofit movement in the UK that encourages new skills, economic growth and more sustainable communities.
Visit homeupgradehub.org.uk to find out more about HUG 2, its criteria and the free support to local authorities available through the Home Upgrade Hub.
David Kemp is associate director, sustainability, at Turner & Townsend
