North Yorkshire Council

Executive Member for Culture, Arts and Housing

10 December 2025

Warm Homes: Local Grant Eligibility Criteria

Report of the Corporate Director Community Development

1.0 PURPOSE OF REPORT

1.1      The purpose of this report is to establish operational guidance for prioritising the Council’s Warm Homes Fund allocation. The aim is to ensure that funding is directed towards households most affected by fuel poverty and poor energy efficiency, while aligning with national guidance and North Yorkshire Council’s strategic objectives. By defining criteria and rationale for decision-making, the guidance supports fairness, compliance, and the delivery of sustainable outcomes for local communities.

2.0       SUMMARY

2.1 The report outlines the reason for our recommended approach to prioritising households most in need under the Warm Homes Local Grant retrofit programme, focusing on properties in Council Tax bands A–D and those on benefits or low income. Listed buildings and hard-to-treat homes will be treated as lower priority due to their higher costs and planning complexities, while remaining eligible if additional funds become available.

3.0       BACKGROUND

3.1       The Warm Homes Local Grant is a government-funded scheme delivered by local authorities to make homes warmer, more comfortable, and energy-efficient, while prioritising vulnerable households. Its primary aims are to reduce energy bills for households struggling with high costs, tackle fuel poverty by targeting low-income households living in the least energy-efficient privately owned homes and support the United Kingdom’s net zero target by 2050 through carbon reduction and cleaner heating solutions. The programme delivers energy performance upgrades such as insulation, low-carbon heating systems, solar panels, and other energy-saving improvements, focusing on the worst-performing homes regardless of fuel type, whether gas or off-gas.

4.0       ISSUE

4.1       The council received a lower level of Warm Homes funding than originally requested from the Department for Energy Security and Net Zero, due to the fund been oversubscribed. It is therefore essential that we focus this funding on properties where it will deliver the greatest benefit to residents. By concentrating resources on homes where improvements can be implemented efficiently and cost-effectively, we can maximise impact on fuel poverty reduction and energy efficiency within the constraints of the available budget.

4.2       The scheme aims to reduce fuel poverty and carbon emissions by funding energy efficiency improvements. However, listed buildings and hard-to-treat homes present significant barriers, including high costs and heritage restrictions, which limit programme impact.

4.3       Consent is required to undertake energy efficiency measures, including internal wall insulation and ventilation upgrades on the majority of listed buildings.  External wall insulation and modern window replacements are often prohibited, and even internal works can require lengthy consent processes.  Retrofit compliance standards also add complexity, for example adequate ventilation must be provided in every habitable room, often requiring trickle vents in historic windows or walls. Heritage properties demand bespoke solutions, multiple surveys, and specialist contractors, creating disproportionate time and resource requirements for a small number of homes.

4.4       Estimated upfront costs for Listed Building Consent applications alone average in the region of £5,000, covering heritage statements, measured surveys, architectural drawings, structural checks, and ecology assessments. Heritage uplifts, specialist materials, skilled labour, and additional planning/survey costs drive the costs up further.  Additional risks include unforeseen structural issues, which are more likely in older properties. 

4.5       Full retrofit in listed or conservation area dwellings significantly increases costs. The Department for Energy Security and Net Zero has set a confidential cost cap, and these additional requirements mean that most works to these properties are likely to exceed that cap. Funding even a small number of these homes would consume a disproportionate share of available funds, limiting the number of households supported.

4.6       In addition, the current eligibility criteria allow owners of high-value properties, including those worth over £1 million to access the scheme. To ensure the funding is targeted effectively and delivers the greatest benefit to the most vulnerable households, we recommend prioritising homes where interventions can be implemented cost-effectively and have the highest impact. Prioritising homes in Council Tax bands A–D and those on benefits or low income ensures maximum impact on fuel poverty.

4.7       The additional local criteria would therefore prioritise funding as follows:

· Priority 1 - Properties in Council Tax bands A–D where the household is on means tested benefits or low income (less than £36,000)

· Priority 2 - Listed buildings and hard-to-treat homes (inc park homes where costs are in excess of cost caps)

· Priority 3 – All other eligible households (including those residents on a higher income or in ownership of a high value home (including those in bands E-F)

An exemption to the above may be applied where there is evidence that the household is in extreme hardship.  This will be discussed by the project board with sign off from the project sponsor.

5.0       CONSULTATION UNDERTAKEN AND RESPONSES

5.1       The Department for Energy Security and Net Zero operates the Retrofit Information, Support and Expertise (RISE) service, which provides technical assistance to local authorities to help navigate complex compliance requirements and ensure successful delivery of retrofit programmes under the Warm Homes Local Grant scheme. Following consultation with this service, it has been confirmed that decisions on how funding is prioritised remain entirely at the discretion of each local authority, enabling councils to focus resources where they can achieve the greatest impact for residents.

5.2       A briefing paper was presented to the council’s internal Housing Retrofit Management Team, who expressed support for the proposal to focus resources on properties where the greatest impact can be achieved.

6.0       CONTRIBUTION TO COUNCIL PRIORITIES

6.1       The programme continues to support the council’s priorities by reducing fuel poverty and carbon emissions while ensuring resources are allocated fairly.

7.0       ALTERNATIVE OPTIONS CONSIDERED

7.1       Including listed and hard-to-treat homes as equal priority was considered but found to be unviable due to excessive costs and planning constraints. Treating all Council Tax banded properties the same would also allow owners of high-value homes to access the grant, diverting resources away from those in greatest need. Giving these property types a lower priority provides flexibility to revisit them should additional or surplus funding become available.

8.0       FINANCIAL IMPLICATIONS

8.1       Prioritisation ensures efficient use of Warm Homes Local Grant scheme funds and compliance with cost caps.

9.0       LEGAL IMPLICATIONS

9.1       There are no legal implications. While Listed Building Consent and hard-to-treat properties are included within the programme, the Department for Energy Security and Net Zero has confirmed that each local authority has full discretion to determine how the grant is prioritised for delivery.

10.0     EQUALITIES IMPLICATIONS

10.1     An Equalities Impact Assessment screening has been undertaken, see Appendix A. There are no specific equality implications to report. The WHLG will provide grants for energy performance upgrades and low carbon heating to low-income households living in the worst quality homes in the private sector. See Appendix A.

11.0     CLIMATE CHANGE IMPLICATIONS

11.1     The climate change impact assessment already in place for the project, is not affected by the recommendations in this report. See Appendix B.

12.0     PERFORMANCE IMPLICATIONS

12.1     By mitigating the risks and excess costs posed by hard-to-treat and heritage properties, these recommendations will improve delivery performance and reduce potential delays.

13.0     POLICY IMPLICATIONS

13.1     The approach supports government guidance and upholds council policy on cost-effectiveness and value for money

14.0     RISK MANAGEMENT IMPLICATIONS

14.1     By addressing risks associated with complex properties, these recommendations strengthen delivery performance. Any residents impacted by prioritisation adjustments will receive direct communication.

15.0 CONCLUSIONS

15.1     By prioritising funding under the Warm Homes Fund we will achieve a balance between fairness, deliverability, and impact. Focusing resources on the most vulnerable households particularly owner-occupiers in low-income brackets and properties with poor energy performance means we can maximise value for money and align with national and local objectives on fuel poverty and climate action. Setting out our approach ensures transparency, compliance with Department for Energy Security and Net Zero guidelines, and builds on lessons learnt from previous schemes to deliver measurable outcomes.

16.0     REASONS FOR RECOMMENDATIONS

16.1 The recommendations aim to make the Warm Homes: Local Grants programme as effective as possible for those most in need, while meeting funding requirements. They support national and local goals to reduce fuel poverty and cut carbon emissions. By prioritising households in council tax bands, A–D, resources are shared fairly. Homes that are harder to treat or in conservation areas are given lower priority, so funding achieves the greatest impact. This approach ensures transparency and delivers measurable improvements in energy efficiency for vulnerable residents

17.0	RECOMMENDATION
17.1	Adopt local operational guidance to support the delivery of the Warm Homes Fund grant as set out in the report.

            APPENDICES:

Appendix A – Equalities Impact Assessment Screening

Appendix B – Climate Change Impact Assessment

Nic Harne

Corporate Director – Community Development

County Hall

Northallerton

27^th November 2025

Report Author & Presenter– Lynn Williams, Head of Housing Renewal