As it stands, local authorities and housing associations could potentially lose initial funding awarded to them as part of the Warm Homes Plan if year one allocations for life-changing energy efficiency projects are not completed by March 2026 – but it’s not just funding that is on the line. Derek Horrocks, Chairperson at the National Home Decarbonisation Group (NHDG) and principal retrofit contractor Sustainable Building Services (UK) Ltd, explains why vulnerable households and the retrofit supply chain must not suffer because of these delays.
Six months on from the three-year funding allocations being confirmed through the Warm Homes: Local Grant and Warm Homes: Social Housing Fund Wave 3 Capital schemes, we are only just beginning to see momentum build and projects awarded to an eager retrofit supply chain.
There are many factors at play here that are preventing greater progress, including projects still being completed from Wave 2 of the previously named Social Housing Decarbonisation Fund, a new procurement regime that is potentially extending tendering processes, and legal agreements and new contracts being put in place by all parties. However, the fact remains, year one funding under the latest government streams is at risk of going unspent if it is not used by the deadline in March through no fault of anybody. It always takes time to bed new schemes in with slightly different rules and procurement processes.
Well-resourced and experienced retrofit specialists remain primed to support with the delivery of new retrofit projects, which will improve the lives of thousands of people across the country through health and wellbeing benefits, increased comfort and cost savings. Previous funding is being used effectively and has proved the substantial impacts of these large scale, energy efficiency schemes, which are run and monitored by local authorities and housing associations. It is critical that we make the most of the hard work that has been done to secure £1.8bn for use over the next three years — and will be match funded to create a significant total of almost £3bn.
As we see these contracts unlocking and coming to market to deliver government-funded schemes over the coming months, I will be working with NHDG members to lobby the Government to ensure that any money not able to be spent in year one is still allocated to these schemes under the five year Warm Homes plan and it is spent on improving householders experience and enabling them to live in warmer, drier, healthier and cheaper to heat homes.
It’s important to ensure the funding already allocated remains in the hands of local authorities and housing associations because the people that stand to miss out most are the residents, who are relying on registered providers and government grants to undertake life-changing energy efficiency projects.
If unspent money must be returned to the Government, perhaps the challenging economic climate will be the reason cited. But, this climate is exactly why the funding should remain with authorities, making sure residents can save money on their energy bills if retrofit projects are planned and delivered as expected. This remains a time for transparency and collaboration between the Government, public sector and private sector, so that expectations are managed and impactful work is maintained.
All stakeholders involved in delivering retrofit decarbonisation works to these large scale capital schemes through local authorities and housing associations deserve immense praise for the scale of delivery completed in recent years. However, this should only act as motivation moving forwards, instead of a reason to slow down or take the encouraging position we are currently in for granted.
