Purpose

To consider the report of the Cabinet Member for Housing seeking approval to accept the £4.82m grant funding awarded under the Warm Homes Social Housing Fund (WHSHF) for the installation of heat decarbonisation technologies across the HRA.

Decision

(i)  Subject to Council approval of recommendation (i), to delegate authority to the Executive Director of Resident Services, following consultation with the Cabinet Member for Housing, to take all necessary actions to deliver the Warm Homes Social Housing Fund Programme.

(ii)  Subject to Council approval of recommendation (i), approve the creation of a Warm Homes Programme Administration and Ancillary revenue budget of £0.724M.

(iii)  Subject to Council approval of recommendation (i), approve the creation of £4.824M capital budget, being £4.100M additional spend funded by grant funding and the reallocation of £0.724M existing HRA capital funds to provide the match funding requirement and give authority to spend on the Warm Homes Programme. 

Reasons for the decision

1.  The Council has been awarded £4.82M from the Central Government’s Warm Homes Social Housing Fund (WHSHF), which aims to support the UK’s Net Zero by 2050 target. The grant funding is earmarked for the delivery of Low Carbon Heating Technologies across the Council’s HRA assets.

2.  Existing gas heating infrastructure serving several HRA assets requires modernisation. The installation of heat decarbonisation technologies will enable the decommissioning of ageing gas systems across these homes. This report proposes utilising available grant funding to support the replacement of obsolete heating infrastructure, helping to reduce the Council’s expenditure on end-of-life gas equipment across the HRA portfolio.

3.  This programme is a targeted investment in residents’ quality of life. The new systems will deliver improved energy efficiency and comfort, giving Council tenants greater control over their heating and reducing annual energy bills by an estimated £76–£108 per household. The works will also contribute to Decent Homes Standard compliance, addressing end-of-life gas infrastructure and enhancing the safety, reliability, and sustainability of the Council’s housing stock.

4.  The low carbon heating technology proposed as part of these funded works offer lower emissions, reduced bills, long lifespan, and improved Energy Performance Certificate (EPC) ratings. The WHSHF will also assist the Council in meeting its own Net Zero by 2035 targets and reduce the Council’s own Capital expenditure on the Decent Homes programme between 2025-2028.

Alternative options considered

Option 1: Retain ageing gas infrastructure which is high risk and high cost to the HRA, and even higher costs to residents, considering current energy prices.

Option 2: Switch to direct electric heating (High Heat Retention Storage Heaters)

i.  Easier to install but higher tenant costs and lower grant eligibility.

ii.  Lower efficiency and reduced thermal comfort compared to alternative low carbon technology.

iii.  Limited environmental benefits and weaker alignment with decarbonisation targets.