Warm Homes Fund – March 2018 Update

The Warm Homes Fund (WHF) is a £150million fund provided by National Grid and administered by Affordable Warmth Solutions (AWS) across England, Scotland and Wales. It is primarily designed to incentivise the installation of affordable heating solutions in fuel poor households who do not use mains gas currently as their primary heating fuel. It is envisaged that this fund will be used to supplement local initiatives and existing funding streams.

The fund is split into three broad categories:

  • Category 1: Urban homes and communities
  • Category 2: Rural homes and communities
  • Category 3: Specific energy efficient/health related solutions

The fund has a series of bidding rounds, with applications invited from local authorities and registered social landlords, working with their local partners.

Round 2 update

We would like to thank all bidders who participated in round 2 which closed in February. A total of 107 applications were received across all three categories which, as expected, was reduced from round one following our decision to allow applicants to submit bids in either February or September based on the level of confidence in their figures pending further clarity around ECO3.

40 applicants are now progressing through to contract discussions, representing around £31.5m of funding, and the installation of c.7,800 first time central heating systems. We were also pleased to see some ambitious category 3 projects which will connect fuel poor homes to the resources they need to address their particular challenges and awards in this category have grown significantly in this bidding round.

We are pleased to report that, despite the uncertainties regarding ECO funding, the costs per measure were reduced from round one meaning that the fund can reach even more fuel poor households.

The majority of successful applicants have been notified of the outcome of their bids and we will provide further information, including split by government administrations, once contracts are finalised. We are not in a position to provide individual feedback to unsuccessful bidders.

Approximately £63m has now been allocated from the fund.

By way of reminder, please note that round 2a is open and bids should be submitted by midday on 28th September. You are only eligible to bid in this round if you did not bid in round 2 and, in respect of category 3, if you submitted an expression of interest in January 2018. Round 3 will open on 4th December and close at midday on 8th February 2019.

If you have any questions, please contact whf@awscic.org.uk