A Government initiative, The Warm Homes: Local Grant scheme, is set to start in 2025. This scheme aims to improve energy efficiency and reduce the carbon emissions of homes in England
Improving energy performance
The new scheme will target low-income households that are privately owned (either owner-occupied or privately rented) and have an Energy Performance Certificate (EPC) rating between D and G.
The main goal is to help these households by installing energy performance upgrades and low-carbon heating solutions at no cost to the residents.
The government has allocated £500 million to this initiative, with funds distributed to local authorities nationwide.
If the property is suitable, these funds will support various energy efficiency measures, like insulation, solar panels, and heat pumps.
The aim is to ensure that the upgrades are personalised to each household’s specific needs and that the most effective solutions are applied.
Local authority’s role in delivering Warm Homes
Local authorities will play an important role in delivering the Warm House: Local Grant as they are responsible for identifying eligible households and overseeing the installation of energy-saving measures.
It is important to note that the funding provided by the scheme is designed to cover the full cost of the improvements, meaning that there is no financial burden on the residents.
How the funding is allocated
The allocation of funds is structured to prioritise areas with the greatest need. Some local authorities, particularly those in more deprived regions, have been allocated significant sums to support extensive work.
For example, Blackpool, a consortium of local authorities in the North, has received over £30 million in funding, while the Greater London Authority, encompassing many boroughs, has been allocated £53 million. Other areas such as Bristol and Darlington also received substantial amounts, reflecting their larger populations and higher levels of need.
The funding distribution is not only determined by the size of the area but also takes into account the levels of deprivation and energy inefficiency in the homes. The Indices of Multiple Deprivation (IMD) and Income Deciles are tools used to determine eligibility, focusing on those most in need of support. Local authorities are responsible for ensuring that eligible households meet the requirements based on income levels or other low-income proxies.
Efforts to reduce carbon emissions
The Warm Homes Plan also hopes to reduce carbon emissions by upgrading homes with low-carbon heating solutions, such as air-source heat pumps.
This is an essential step in the UK’s mission to transition to net Zero emissions by 2050.
By decarbonising housing, the government hopes to reduce the environmental impact of homes and encourage the broader adoption of green technologies.
In addition to improving energy efficiency, the initiative is expected to create significant economic benefits. As the plan progresses, it will generate thousands of new jobs in the green economy, from tradespeople installing energy-saving measures to experts involved in the planning and designing of retrofitting projects. The program also shows the need for training and skills development, ensuring the workforce can support the long-term goals of decarbonising the housing sector and achieving net-zero emissions.
Overall, this initiative is designed to have a positive social impact by providing energy-saving upgrades to the most vulnerable households; the plan addresses one of the key drivers of fuel poverty and inefficient housing.
Many of the properties the plan targets are older homes that are harder to heat and maintain, leading to higher energy costs for their residents.
Improving the energy efficiency of these homes will make them more comfortable to live in and reduce the housing sector’s environmental footprint, contributing to the UK’s climate goals.
