This opportunity combines two schemes into one competition for Local Authorities, consisting of a £200 million third phase of the Local Authority Delivery (LAD3) scheme and a £150 million initial phase of the Homes Upgrade Grant (HUG1) scheme. Together this will provide £350 million of funding in 2021/22 to upgrade energy inefficient homes for low-income households across England.
A Combined Competition for HUG1 and LAD3
The two schemes are being launched together as the combined ‘Sustainable Warmth’ competition, as both schemes support the recently published Sustainable Warmth: protecting vulnerable households in England strategy. Launched through a joint application process on Wednesday 16th June, Local Authorities will be able to bid to enable delivery under either the HUG1 scheme, the LAD3 scheme or both.
HUG1 and LAD3 policies create a complementary package of funding to target energy inefficient properties, with delivery starting in 2021/2022 and continuing through to March 2023. The schemes cover both off-gas grid (HUG1) and on-gas grid (LAD3) properties, where the household is on a low income and likely to be in fuel poverty. The existing focus - on upgrading the worst insulated owner occupier and private rented homes with energy efficiency installations and low carbon heating – will be retained. This means that projects which upgrade E, F and G rated homes will be prioritised and upgrades to Band D rated homes will be limited.
The competition will be open for 7 weeks, with applications being accepted from 16 June to 4 August 2021. Applications should be submitted via the application form electronically to email@example.com. Successful Local Authorities will receive grant offers in Autumn 2021, with BEIS making contact with individual Local Authorities to inform them of the outcome of bids. A list of successful bids will be published on GOV.UK.
BEIS will be hosting several launch webinars throughout the competition window to ensure you have the opportunity to learn more about the detail of the competition and to ask questions regarding the policy and the application process. The first webinars will be held on 22nd June at 2pm and 24th June at 10am; details will be sent automatically of these sessions to those who have already provided contact details and those who attended a recent introductory webinar on this competition. Those who did not attend the introductory webinar and would like to be invited to the launch webinars, are invited to e-mail firstname.lastname@example.org to be added to the invitation list.
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