20,000 social homes targeted with £179m of government energy efficiency funding

69 local authority social housing projects across England will share £179 million of government funding intended to improve the energy efficiency of their properties.

The funding, delivered as part of the first wave of the Social Housing Decarbonisation Fund (SHDF), is being offered to upgrade some 20,000 social housing properties across the country that fail to meet the Energy Performance Certificate (EPC) C rating. A major aim of the fund is to reduce carbon emissions from social housing and ensure more affordable heating by covering the costs of fitting wool and roof insulation, heat pumps, solar panels, as well as energy efficient doors and windows.

All upgrades are expected to be delivered under the first wave of the funding scheme by the end of March 2023.

A second wave of funding with a value of up to £800m is expected to open for applications later this year, according to the Department for Business, Energy and Industrial Strategy (BEIS).

Business and Energy Minister Lord Callanan said the SHDF scheme would provide billions of pounds to curb the heating and energy bills of social housing tenants, as well as supporting the country’s net zero carbon ambitions.

He said, “The £3.8 billion we’re investing through the Social Housing Decarbonisation Fund is helping drive down energy bills for thousands, targeting help to those who need it most by making their homes warmer, more comfortable and greener.”

Kate Henderson, chief executive of the National Housing Federation, said that housing associations across England were committed to work with the government on improving the efficiency of the country’s housing stock through the fund.

She said, “We warmly welcome the announcement of the first Social Housing Decarbonisation Fund recipients. Alongside helping us to achieve our crucial net zero target, this will mean warmer, more comfortable homes for social housing residents, and importantly help to protect them from rising energy bills.”

First wave recipients

The first wave of funding will see £23.7m being split between London authorities such as Hounslow, Havering, Westminster and Camden.

On a regional level, local authorities in the East of England will receive £27.7m – the largest share of this wave of funding.

The West Midlands will receive £23.2 with Yorkshire and the Humber getting £22.5m.

Tracy Harrison, chief executive of the Northern Housing Consortium that represents providers in the region, said that an estimated 7,800 homes in its portfolio would be given efficiency improvements via the first wave of the SHDF.

She said, “We urgently need to build on this and look forward to continuing to work with the government to improve the energy efficiency of homes in the North.

The Heat Pump Association said via social media that it also welcomed the first wave of funding as a timely intervention to address the issues facing homeowners in heating homes in a sustainable and economically viable way.

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