Warm Homes Fund – October 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 three annual rounds of bids, with applications invited from local authorities and registered social landlords, working with their local partners

Round 1 update

We would like to thank all bidders who participated in Round 1 which closed in September. A total of 234 applications were received across all three categories, with 43 category 1 and 2 applicants progressing through to contract discussions stage, representing around £32m of funding, and the installation of c.9,000 heating systems measures. Successful applicants will be notified of the outcome of their bids by the end of October 2017 and we will make a further announcement once the contract discussion stage is complete.

Further information, including split by government administrations will be provided once contracts are finalised.

In the meantime, we can provide the following feedback, which may be of interest to anyone wishing to submit a bid to Round 2 of the fund. Unfortunately, due to the volume of bids received, the team will not be in a position to provide individual feedback. 

General Feedback

In categories 1 and 2, the successful bids were able to demonstrate through their application their understanding of specific target properties and the eligibility criteria of households. They could introduce other sources of confirmed funding, in addition to being able to demonstrate the use of their own funds. Successful bidders also had a delivery mechanism that was ready to mobilise and begin delivering measures this fiscal year.

Where bids were not successful they tended to contain elements (in full or part) of ineligible measures – examples include the replacement of existing central heating systems, boiler replacements only and in several cases, significant marketing and administrative costs.

Category 3 bids generally lacked ambition both in terms of scale and sustainability. Bids provided insufficient explanation of the specific WHF funding requirement or cost justification. In many cases, high cost capital measures were included in category 3 bids – something that should have been included in the other categories. Consequently, only a few bids have been recommended for funding support in this category and we will provide further details shortly.