Health and Adult Services


Sustainable Warmth Competition Funding


9th November 2021



Key purpose of the report


To seek approval to accept funding from the sustainable warmth competition that will support residents living in fuel poverty across Scarborough, Ryedale and Hambleton.



What type of report is this?


Briefing item

Does the report contain any confidential information?








Report details


Sustainable Warmth is a Government competition launched to bring together two fuel poverty schemes (Local Authority Delivery Phase 3 and Home Upgrade Grant Phase 1) into a single funding opportunity for Local Authorities. The funding will provide upgrades to low-income households living both on and off the gas grid to tackle fuel poverty and contribute towards net zero targets. It will help some of the least efficient homes become more energy efficient and cheaper to heat with low-carbon energy.  These upgrades aim to create warmer homes at lower cost, and will support low-income families with the switch to low-carbon heating, ensuring fuel poor households are not left behind in the transition to net zero.


NYCC has led a consortium with three district councils (Scarborough, Ryedale and Hambleton[1]) and was successful in this latest round of funding to tackle fuel poverty as part of the seasonal health strategy.


The bid set out how we would target wards with the highest rates of fuel poverty and also the worst homes first. The NYCC consortium has been successful in bidding for: 


1. Local Authority Delivery (LAD) Phase 3: £3,728,747.83 to support low-income households heated by mains gas. This will provide 395 measures such as solar PV, hybrid air source heat pumps, loft insulation, underfloor insulation and external wall insulation.


2. Home Upgrade Grant (HUG) Phase 1: £4,652,906.12 for low-income households with homes off-gas grid through the Home Upgrade Grant (HUG) scheme. This will provide 440 measures such as solar PV, high retention storage heaters, air source heat pumps, loft insulation, underfloor insulation and external wall insulation.


A provider will be agreed who will deliver this programme on our behalf that will include marketing, taking enquiries from potential households, checking eligibility and carrying out the work in individual properties. All measures must be completed by 31st March 2023.



Significant risks and mitigation



A compliant procurement process must be followed and we are exploring using a framework to allow this to be done within the timescales.



Bringing in a project of this scale requires capacity internally from legal, procurement and public health who are already working on similar projects.

Project management expertise is being secured and some legal costs and contract management costs have been included in the bid to increase capacity. Align Property partners will be doing the contract management.


Reputational risk

This project is a good example of joint working with the District and Borough Councils that benefits residents of North Yorkshire and therefore needs to be delivered to avoid reputational risk for any of the councils if the project fails. Project management support is being secured to support smooth implementation of this programme



Financial implications/benefits (include any financial implications for the Council, positive or negative)


Funding will be paid to NYCC and then NYCC would pay the successful provider after each install. Therefore there is no cost to the council as this would be paid directly to the provider via NYCC. If we do not achieve the amount of installs outlined in the bid then the funding will be returned.


The funding will benefit householders as a result of cheaper energy bills. This will impact on their health and wellbeing as well as improved energy efficiency, cost of heating and lowering carbon impact.





That we accept the funding and move forward with implementation.



Next steps


·         A project team will be pulled together to start implementation.



Carly Walker, Health Improvement Manager

[1] This consortium which normally includes Richmondshire has in the past secured £1.3 million through the warm homes grant and a further £2.4 million through the Green Homes Grant. Richmondshire were unable to join for this round due to lack of capacity.

Selby, Craven and Harrogate Councils have worked with York and West Yorkshire, and were successful in securing LAD3 but not HUG in this round.