Decision

The Head of Housing, Revenues and Customer Services has decided to approve recommendations to modify cost cap parameters for the Warm Homes Local Grant program.

Analysis

outcome: Recommendations were approved to modify the cost cap parameters for properties treated using Council funds.

summary: The decision is about varying cost cap parameters for the Warm Homes Local Grant program to enable the upgrade of properties that would not be treatable under current guidelines.

topline: The Head of Housing, Revenues and Customer Services has decided to approve recommendations to modify cost cap parameters for the Warm Homes Local Grant program.

reason_contentious: This issue may be contentious as it involves deviating from established guidelines and potentially favoring certain properties over others.

affected_stakeholders: ["Residents", "Local Authorities", "Listed building owners"]

contentiousness_score: 6

political_party_relevance: There are no explicit mentions of political parties or political influence on the decision.

URL: https://democracy.stratford.gov.uk/ieDecisionDetails.aspx?ID=4053

Decision Maker: Head of Housing, Revenues and Customer Services

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: Vary the cost cap parameters from the guidelines set by the Department for Energy Security and Net Zero for Warm Homes Local Grant, for properties treated using Council funds. This will enable Council to upgrade properties which would not be treatable under DESNZ guidelines. The new Warm Homes Local Grant (WHLG) is a Department of Energy Security and Net Zero (DESNZ) funded programme which runs from April 2025 for at least three years. Under the DESNZ guidelines for WHLG, Local Authorities are permitted to apply discretionary terms for scheme eligibility/parameters.   The Council has supplemented the allocation provided by DESNZ by awarding a significant amount of funding (£1,100,000) to the WHLG programme over three years. Utilising Council discretion to modify the cost cap parameters for this portion of the funding is appropriate to enable the scheme to benefit residents whose properties would be untreatable (or treatable to a lesser extent) under DESNZ guidelines.   The DESNZ guidelines state that: Warm Homes: Local Grant will have twin cost caps – one for energy performance upgrades and one for low carbon heating.   This means that under DESNZ guidelines, if recommended energy performance or low carbon heat measures cost more than the above cost cap, eligible homes are either treated with other (possibly less effective) measures or not treated at all.   The worst performing homes (rated EPC F or G) often require significant treatment to improve energy performance, and listed buildings require planning consent, both of which can result in costs exceeding the DESNZ caps.   In addition, certain measures (such as exterior wall insulation or air source heat pumps) routinely cost more than £15,000, rendering these potentially highly effective measures impossible under the DESNZ guidelines.   Combining the two £15,000 caps into one single cost cap of £30,000 – which can be spent on either energy performance upgrades and/or low carbon heating – is a simple change which would enable the grant to tackle some of the worst performing homes in the District.   The authority to determine these scheme parameters was delegated by Cabinet as part of their consideration of the WHLG.   Alternative options are:   ·         To apply the DESNZ cost cap parameters to the Council funded component of WHLG to keep the programme as simple as possible to deliver. This option is less favourable because a significant number of properties would miss out on improvements, and this would adversely affect poorer performing properties; or   ·         To change the total cost cap to an alternative amount (over £30,000). This option is less favourable because it differs significantly from the DESNZ scheme and might result in fewer properties being treated overall.  

Date of Decision: September 4, 2025