As part of a £1.8 billion package of funding to boost energy efficiency and cut emissions of homes and public buildings across England, the Department for Energy Security and Net Zero has announced that Local Authorities have been awarded a combined £630m through the Home Upgrade Grant: Phase 2 (HUG 2) scheme.

With the funding confirmed, over the next two years the HUG 2 scheme is now set to support over 25,000 low-income households with retrofitted energy efficiency measures. Those being helped are typically the most poorly performing (EPC rating D-G) off-grid homes that are in the most need of upgrading.

Among the energy and cost saving measures that Local Authorities will be able to fund include exterior wall insulation, cavity wall insulation, loft insulation, new windows and doors and draft proofing measures, as well as heat pumps and solar panel installation.

Importantly, improving these homes also comes with the added benefit of supporting 7,000 jobs across the retrofit supply chain.

Commenting on the funding announcement, Secretary of State Grant Shapps said:

“This is a huge investment that will help households save hundreds on energy bills and see them heat their homes for less, and stay warm for longer.

“Not only this but the funding is also a huge boost for job creation and economic growth, opening up new and exciting opportunities across the UK’s ever-expanding green sector.”

Gearing up for delivery

With news of funding allocations confirmed, successful Local Authorities are able to continue moving forward with preparing for delivery of their retrofit programmes. 

From 1 April 2023, organisations will be able to apply to sit the Delivery Assurance Check (DAC).  This next stage in the process allows authorities to demonstrate they are set up to procure and resource their programmes and provide an update on progress before the Department for Net Zero releases further funds.

Further guidance about the DAC can be found via gov.uk, including the DAC form and delivery FAQs.

Once the DAC has been passed, Local Authorities will be able to submit their batch applications. This involves providing housing stock data, measure mixes, and final costs for a batch of homes that are ‘ready-to-retrofit’ – which includes households who are signed up, validated, and assessed for measures in line with PAS 2035.

Is there any support available?

The Home Upgrade Hub is continuing its fully funded support service that provides a range of resources developed by housing retrofit and grant application experts to help Local Authorities into delivery.

If you’ve made a successful HUG 2 application and have any questions or concerns about the next steps, you can email [email protected] where a dedicated team is ready to help.

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