URL: https://sandwell.moderngov.co.uk/ieDecisionDetails.aspx?ID=1158

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose:

Content: Approval was sought for the council to secure funding from the West Midlands Combined Authority (WMCA) for a devolved retrofit pilot. The scheme provided funding for the implementation of retrofit energy efficiency measures to the Councils housing stock, private homes and to public buildings.   Reason for Decision This largely grant-funded opportunity represented a significant step towards improving energy efficiency and reducing carbon emissions across Sandwell’s housing stock and public buildings. By strategically selecting eligible properties/households, utilising smart technology, and leveraging WMCA’s expertise, the Council could deliver a cost-effective retrofit solution that would benefit both residents and the environment.   WMCA had worked with constituent local authorities and the government’s Department for Energy Security and Net Zero to secure a better deal for the West Midlands in terms of accessibility to grant funding for energy-efficiency work.   Funding had been secured and proportioned to constituent local authorities based on perceived need. Properties in scope are eligible council homes, private homes (including rented) and public buildings.   Alternative Options Considered Option 1 – decline opportunity to access Devolved Retrofit Pilot funding. This option would have several implications for wider activities, including - ·      Council homes - delivery of similar measures without match-funding provided under the grant would inevitably require a greater call on the Housing Revenue Account (HRA) resulting in a scaled back programme. Grant funding allowed the delivery of measures which were supported by resident preference, such as solar PV systems, supporting their priorities around reduction of fuel costs. ·      Private sector homes - the Council did not have resources to fund delivery of energy-efficiency measures to private sector homes. As such, eligible households deemed to be in fuel poverty were generally reliant on what was known as Energy Company Obligation (ECO) funding for financial help to help with energy-efficiency upgrades. ·      Public buildings - should the council wish to reduce carbon emissions or energy costs through, for example improved insulation or low carbon heating, or simply replace existing heating systems, it would likely need to meet the full cost of those schemes from existing resources.   Option 2 – Wait for alternative government funding. This option would have several implications for wider activities, including - ·      Council homes - Currently there were no other schemes for social housing tenures or timelines of availability. ·      Private sector homes –eligible private households were currently able to access Energy Companies Obligation funding for retrofit of energy-efficiency measures. The current phase of this (ECO4), was scheduled to end on 31 March 2026, although the government was currently carrying out consultation with a view to granting an extension for up to a further 9 months. ·      Public buildings - the PSDS scheme that had been used in the past was no longer available. As such the Devolved Retrofit Pilot was currently the only scheme that provides funding towards decarbonising the broad public sector-built estate.   Resolved:-   (1)          that delegated authority is given to the Executive Director Place in consultation with the Executive Director of Finance and Transformation and the Cabinet Member for Regeneration and Infrastructure, to:   (a)          use an evidence-based approach to prepare suitable projects eligible for Devolved Retrofit Pilot grant funding;   (b)          submit Stage 2 bids to West Midlands Combine Authority for energy-efficiency improvements to designated council homes, private homes and public buildings;   (c)          in consultation with the Service Director – Governance (Monitoring Officer), enter into a formal grant agreement with the West Midlands Combined Authority in relation to Devolved Retrofit Pilot Initiative resources;   (d)          submit further Stage 1 and Stage 2 bids, to secure funding derived from any available unused allocations as appropriate;   (e)          prepare tender documentation and conduct appropriate procurement processes, to award the required delivery contracts, following formal approval of allocated budget in the 2026/2027 MTF, in accordance with the Procurement Act 2023 and the council’s Procurement and Contract Procedure Rules, in relation to the Housing Revenue account Repairs and Maintenance service;   (f)            enter into or execute under seal any documentation in relation to the award of the contract and/or development/partnership agreement with the properly procured contractor from current Buildings Maintenance tender (ref SMBC 23081), for the delivery of any works associated with and in accordance with the Devolved Retrofit Pilot funding agreement.   (2)          that delegated authority is given to the Executive Director of Finance and Transformation to identify and commit council funds to act as the council’s match funding contribution towards any projects undertaken, up to a limit of £11.761m, as per table 3.4 of this report;   (3)          that delegated authority is given to the Service Director - Governance (Monitoring Officer) to complete all necessary documents to give effect to (1) and (2) above.  

Date of Decision: December 10, 2025