Sustainable Warmth competition brought together two existing fuel poverty schemes into one funding opportunity:

• Local Authority Delivery Phase 3 (LAD3): a third phase of the LAD scheme with over £280 million available nationally. LAD3 has a refined scope to support low-income households heated by mains gas
• Home Upgrade Grant Phase 1 (HUG1): over £218 million nationally for low-income households with homes that are off the gas grid through the HUG scheme

Following its successful bid for funding on behalf of over 50 Midlands Local Authorities, the Midlands Net Zero Hub received a total of £86m of Government funding. This was split £28m for HUG1 and £54m for LAD3. 

Key Facts 

In the Midlands, local authorities delivered local schemes with the support of local coordinators who supported answering questions about the scheme and checking eligibility. Local coordinators also supported with switching energy providers and other services to help households save money on their bills.

In HUG1, the Midlands Net Zero Hub supported:

• 40 local authority areas
• Improvements to 730 homes
• 1,260 energy efficiency measures installed

In LAD3:

• 42 local authority areas
• Improvements to 4,375 homes
• 5,740 energy efficiency measures installed

The Hub used local knowledge and regional expertise to identify households most likely to require support, and which would best benefit from energy efficiency upgrades. We allocated funding to local authorities to deliver Sustainable Warmth Competition to improve the energy efficiency of homes of low-income households (under £30,000) living in their area. 

The scheme aimed to improve low energy performance certificate (EPC) D to G rated homes. This supported progress towards sustainable warmth – reducing household energy bills as well as supporting the phase out of fossil fuel heating and the UK’s commitment to net zero by 2050.