On 30th September 2024, the Department for Energy Security and Net Zero (DESNZ) welcomed applications to be submitted for Wave 3 of the Social Housing Decarbonisation Fund, which has been renamed to Warm Homes: Social Housing Fund. This scheme provides £1.25 million pounds of funding to registered providers and councils to combat fuel poverty and improve energy efficiency of homes.
Following feedback received from previous waves of funding and with the intention of making delivery of energy efficiencies easier, DESNZ has introduced some further changes to Wave 3 which include the following:
- All applications that meet the minimum requirements of this new scheme will be awarded funding. Although, applicants need to be aware that if this wave is oversubscribed, applicants may not receive the full amount of funding requested;
- All grant funding allocated to projects must be transferred to the registered provider and/or council and spent by 31 March 2028;
- Up to 10% of homes in an application, which are on the gas grid, can access a grant fund of up to £20,000 per home to install low-carbon heating measures. This also includes homes on the gas grid which have an EPC band C or above;
- A standard £7,500 cost cap for grant funding per home is available. In Wave 2, the funding available per home varied based on the starting EPC band or wall type;
- There is now more opportunity for smaller registered providers (i.e. those who own or manage less than 1000 homes) to apply for the funding as there is no longer a minimum application size. However, there is an expectation for these landlords to try and reach 100 homes in their application or alternatively group together with another registered provider to reach this number; and
- Where a mixed tenure block contains at least 30% of social homes, these properties can now be included as part of the Warm Homes: Social Housing Fund application. In Wave 2, the requirement was 50%, therefore this percentage reduction allows more homes to be included.
In conjunction with the Warm Homes: Social Housing Fund, the government has also introduced a further funding initiative called Warm Homes: Local Grant aimed at assisting private tenants and low-income homeowners with improving energy efficiencies for their homes. This funding will assist DESNZ’s consultation on proposals that private and social rented homes should achieve an EPC rating of C or equivalent by 2030. Currently privately rented properties must have an EPC rating of E or higher, while social homes have no minimum standard. The CIH have welcomed these proposals as they are very aware that, especially in the private sector, residents are exposed to unaffordable energy bills.