Warm Homes: Frequently asked questions - Webinar briefings WHLG

Funding and finance questions

Council governance can take a very long time. When will the expression of interest (EoI) go live and how long will there be for it to be completed?

The EoI window will run from 16th October to 1st December 2024, subject to spending review. EoI forms should be submitted via email to WHLG@energysecurity.gov.uk before 23:59 on December 1st 2024. EoIs received after the closing date will not be considered for funding.​

How long is the scheme? In the guidance it says 3-5 years to be confirmed. When will this be confirmed as it will affect strategy and number of homes included?

The total amount of funding available, and the number of years the Warm Homes: Local Grant will run for, will be confirmed following the multi-year Spending Review launched by the Chancellor earlier this summer.

To meet the average spend requirement, lower-cost measures need to be included, which can conflict with the PAS 2035:2023 standard’s focus on installing the most suitable measures. This approach could also make a household ineligible for future funding to install necessary measures like external wall insulation (EWI). Given the priority to avoid leaving fuel-poor households behind, how will the average spend requirement prevent this from happening?

To ensure value for money outcomes for taxpayers' money, WHLG has set cost caps per home as well as measure price limits for five measures. These are: EWI internal wall insulation (IWI), double/triple glazing, park home insulation, and solar thermal. Price limits have been applied to these measures because they are particularly sensitive to the price of installation.

However, in recognition that some homes are more complex and expensive to treat, DESNZ only requires those cost caps and measure price limits to be met on average across the project by scheme end (rather than to be met for each home upgraded and measure installed). 

It may not always be possible to treat homes with some measures within the scheme’s cost caps and/or measure price limits. Local authorities (LAs) will be responsible for managing any risk around installing more expensive measures in some properties, whilst meeting cost caps and measure price limits on average by project closure.

We would therefore encourage LAs and retrofit co-ordinators to be on the front foot when considering more expensive measures, by preparing an alternative measures package (e.g., other fabric and smart measures) should they deem quotes to be too high to meet scheme rules.

Preparing alternative measure packages will allow for better communication with households and will save time and money for LAs. It will also help support fuel poor households by maximising the likelihood of recommending a suitable measure package that fits within the cost caps/measure price limits. 

Whilst there is a cost cap, is the overall project cost going to allow for the average cost cap to be met? I.e., where lower cost measures are only required, can they offset the higher cost measures?

LAs are expected to balance upgrading more expensive homes with less expensive homes, to meet the cost caps on average, at project level, by project closure. This means that LAs are permitted to offset properties that may exceed the cost caps with properties that are cheaper to upgrade. 

Will higher levels of funding be available for hard-to-treat homes, for example, listed buildings, conservation areas, etc., due to special requirements and non-standard solutions needed?

To ensure value for money outcomes for taxpayers' money, WHLG has set cost caps per home as well as measure price limits for five measures, where the value for money of the measure is particularly sensitive to the price of installation.

We recognise the fact that some homes are more complex, and therefore expensive, to treat; so - while there will not be an uplift for hard to treat homes - we are only requiring projects to be meet these cost caps and price limits on average. Requiring these to be met on average, rather than for every single home upgraded or measure installed, will allow LAs to balance the costs of upgrading more expensive to treat homes with those that are cheaper to upgrade.

Will there be mobilisation funding available following the EoI?

There will not be mobilisation funding available in financial year 2024/2025. This is because there would be insufficient time to issue and spend mobilisation payments within the financial year, given Memorandums of Understanding are currently expected to be sent to LAs for signature in February 2025. However, grant recipients will receive an upfront payment at the start of each financial year of the scheme, of to 20% of the grant funding allocated to them for that financial year.

Guidance questions

What evidence are we required to provide to show that a park home is "expected to still exist"?

LAs may use some discretion to satisfy themselves on whether a park home may still exist (i.e., not be demolished) for the whole duration of the measure guarantee period for the measure/s to be installed, or for the longest guarantee period if more than one measure is installed. Owner declarations are one example of evidence that could be used, and LAs would also be expected to check whether there are any redevelopment plans in progress for the site.

Is there any guidance on calculating income where someone in the household is self-employed, and what evidence would be required for that?

In the case of someone in the household being self-employed, DESNZ expects the LA to reasonably satisfy themselves that the household is under the income threshold. Although we do not publish official guidance on calculating income, bank statements and tax returns can be used to ascertain income of self-employed household members.  LAs will be required to detail how they will verify household eligibility as part of the Delivery Assurance Check, which must provide DESNZ with sufficient assurance. 

Can 'household costs' be defined? Does this refer solely to rent/mortgage, or also include utility costs e.g., the costs of gas and electric?

An ‘after housing costs’ income is the residual income that a household is left with after tax (net income) and after the deduction of rent or mortgage payments. Housing costs do not include council tax, energy bills or ground rent.

If someone already has solar PV, can they receive battery storage if they qualify (e.g., if applied under HUG2)?

If a home received solar PV under a previous phase of LAD or HUG, the installation of battery storage to complement the solar panels may be possible under WHLG. This is so long as one of the following two conditions is met: either that the home reaches EPC C as a result of WHLG measures installed, or that low carbon heat is installed in the home as part of the WHLG package of measures.

Note: homes must be rated EPC D-G to be eligible for WHLG and that battery storage will only become an eligible measure once the transition has taken place from RdSAP 2012 to RdSAP 10.2.

Technical questions

Which budget would any potential remedial works (such as repairs to rainwater goods and pointing) go under, especially where remedials are required to ensure the install is completed compliantly? Will it be A&A, cap ex, or another potential budget? Also, will the property development costs, i.e., retrofit assessment, design, and coordination costs come from the property budgets?

LAs will be able to use up to 15% of their total project spend to cover A&A costs, including (but not limited to) resourcing, procurement, specialist advice, searching for eligible homes, signing up households, validating, assessing homes, and agreeing a measure package in line with the applicable PAS standards and remedial works. A cost categorisation table will be provided in the Mobilisation and Delivery Guidance to give further guidance.

When it states that 'wet central heating' is a measure, can this be for gas central heating, or must it be a low carbon technology?

Wet central heating must only be installed to accommodate or complement a low carbon heating technology, compatible with RdSAP and covered under the latest PAS 2035:2023 guidance, and installed under MCS standards. 

Delivery questions

If challenges with HUG 2 constraints have prevented the completion of the planned number of homes, but there is a waiting list ready for future retrofits, will an LA’s past performance impact their standing?

Our checks on past performance will take the best performance in terms of homes upgraded over a 6-month period on a HUG or LAD scheme. This does not need to be HUG2. If HUG2 was your best performing previous scheme, yet you feel your performance was still constrained by factors outside your control, you can submit this information in question 5C of the EoI form.