The Portfolio Holder Decision Meeting approved the delivery of the Social Housing Decarbonisation Fund (SHDF) / Warmer Homes (WH: SHF) Wave 3, securing £1.99 million in grant funding to improve energy efficiency in 144 council properties. This decision also approved the direct appointment of Sustainable Building Services (UK) Ltd to carry out the necessary works.

Social Housing Decarbonisation Fund (SHDF) / Warmer Homes (WH: SHF) Wave 3

The meeting approved the offer to enter into a partnership agreement with London Councils to accept £1,990,914.00 in grant funding from the Warm Homes Social Housing Fund Wave 3 programme. This funding will enable energy-efficiency retrofit works to approximately 144 council-owned properties. The decision also approved the direct appointment of Sustainable Building Services (UK) Ltd to deliver this programme.

The primary reason for this decision is to ensure Harrow Council continues to proactively deliver warmer, healthier, and more energy-efficient homes for its residents. This initiative aims to address issues of damp and mould, reduce residents' heating costs, and contribute to the Council's Climate Emergency and Net Zero 2030 commitments. By approving this, Harrow secures and maintains the grant funding allocation within the London Councils Strategic Partnership, administered by the Department for Energy Security and Net Zero (DESNZ), ensuring continued participation in this nationally significant programme.

The report highlighted that the proposal demonstrates clear value for money, as Sustainable Building Services Ltd delivered decarbonisation works under Wave 2.1 at a lower cost than the formally procured SHDF contractor, EQUANS, while achieving full compliance with programme standards. Implementing this recommendation will ensure timely delivery, full Key Performance Indicator (KPI) compliance, and financially efficient use of public funds, building on Harrow's proven track record in delivering decarbonisation and energy-efficiency works aligned with local and mayoral performance targets.

The funding is part of the national Warm Homes: Social Housing Fund (WH: SHF), formerly known as the Social Housing Decarbonisation Fund (SHDF). This government-backed programme, administered by London Councils on behalf of DESNZ, aims to improve energy efficiency in social housing to help residents enjoy warmer, healthier homes, lower energy bills, and reduced carbon emissions. The Wave 3 programme focuses on large-scale retrofit and decarbonisation projects across multiple London boroughs. Harrow's involvement reflects its capability in programme delivery and its strong performance in previous waves.

The key objectives of Wave 3 include reducing fuel poverty and energy costs for residents, improving the thermal performance of social housing stock, and decreasing carbon emissions in line with net zero targets. Projects will primarily target insulation measures and low-carbon heating technologies. Harrow's specific priority under Wave 3 is to complete remaining retrofit works to its BISF and ORLIT (steel-framed) housing stock, utilising External Wall Insulation (EWI) to significantly enhance performance and longevity.

The report also noted that the Council had addressed contractor performance issues identified under Wave 2.1, with a September 2025 Cabinet report detailing timely intervention and resolution. Harrow has subsequently secured a Wave 3 Strategic Partnership allocation through London Councils, marking a key milestone in the borough's long-term retrofit strategy.

The decision to directly appoint Sustainable Building Services (UK) Ltd was justified by their consistent value for money, high-quality delivery, and strong performance under Wave 2.1. Their proven experience and understanding of Harrow's housing stock make them the most suitable choice for efficient and timely delivery of Wave 3. Programme delivery and compliance will continue to be monitored and administered by Bellrock, working in partnership with Constructive Thinking, Harrow's prioritisation, financial, and technical advisor. The value of this direct award is below the threshold for works contracts as set out in Schedule 1 of the Procurement Act 2023, and the Council will comply with all relevant provisions, including publishing a Contract Details Notice.

The financial implications involve accepting £1.991 million of external grant from Wave 3, co-funded by £1.991 million from existing allocated decarbonisation capital budgets, creating a total programme value of approximately £3.982 million. This co-funding will be drawn from the approved £17 million Decarbonisation Budget within the 2025–28 HRA Capital Programme. No additional revenue implications are anticipated beyond existing staffing and programme management arrangements.

The programme aligns with the Council's equality, diversity, and inclusion policies, and contract specifications will explicitly outline equality and accessibility duties for all contractors. The programme will provide targeted support, including energy and tariff-management advice, installation of measures to reduce energy bills and mitigate damp and mould, and improved lifestyle and wellbeing guidance. An Equality Impact Assessment (EIA) is in place and confirms that opportunities to address diversity and vulnerability are embedded in the programme design.

The decision directly supports the Council's priorities: A council that puts residents first by improving housing decency and tackling fuel poverty; A borough that is clean and safe by improving the environment and addressing climate change through retrofit; and A place where those in need are supported by ensuring compliance, mitigating health and safety risks, and delivering social value through new technology and apprenticeships.

The meeting also noted that there were no declarations of interest, no petitions received, and no public questions submitted.

The decision was approved subject to call-in, with the deadline for call-in being 5.00 pm on 4 December 2025. Decisions will be implemented if not called in by 5 December 2025.