£84 million for greener homes and cheaper energy bills
28 July 2009
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The Homes and Communities Agency (HCA) has today announced that 46 areas of the country will share a fund of up to £84m to help insulate social homes – reducing fuel bills for tenants and cutting carbon emissions.
The Social Housing Energy Saving Programme (SHESP), first announced in April’s 2009 Budget, will provide cavity wall insulation for thousands of homes. The initiative forms part of the government’s Housing Stimulus Package.
The funding, payable over two years, is expected to insulate up to 110,000 difficult-to-fill homes. It is anticipated that works will start this summer.
The majority of the SHESP funding will be allocated to London-based social housing providers, due to the capital’s housing stock having a higher proportion of flats than the rest of the country.
In total, 50 bids were received from a range of social landlords – including local authorities (14 bids), Registered Social Landlords (16 bids) and Arms Length Management Organisations (20 bids). Of these, 46 were successful.
The funding made available will achieve a number of aims:
- an increase in the number of social homes that have cavity insulation
- an overall improvement in the SAP (energy) ratings
- a reduction in carbon emissions.
Commenting on SHESP, Sir Bob Kerslake, chief executive of the HCA, welcomed the outcome: “We are very pleased with the response; the quality of the bids was extremely high. Despite the quick turnaround time required for submission of the bids, we had a very strong response from social landlords. Housing is responsible for more than a quarter of carbon emissions, and this funding has come at a time when the need to tackle climate change has never been greater.”
The funding will therefore not only be a welcome boost to improving insulation in existing social housing stock, but will also provide an employment boost to the cavity wall insulation industry. The programme also contributes to the HCA’s commitment to reducing energy emissions in homes. At the same time, tenants will be able to significantly reduce their energy bills.”
Housing Minister John Healey said: “This multi-million pound funding means that thousands of people, often the most vulnerable in society, will get better insulated homes that are cheaper to heat.”
“Making all homes more energy efficient is a priority for Government. Homes account for a quarter of our CO2 emissions, and the majority of the homes people will be living in 50 years from now have already been built. So it’s clear we have to make our existing housing stock greener, as well as build new homes to tough standards.”
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For further information: HCA press office on 020 7881 1653/1054 or email helen.stoddart@hca.gsx.gov.uk.
Notes to editors
SHESP aims to help social landlords insulate hard to treat cavity walls, which would have not normally been filled under the Decent Homes Programme, thereby making more homes much more energy efficient.
The criteria for bids were:
- Must be “hard to treat” cavity wall insulation, or more than 80% “hard to treat”
- Must be additional to works already planned
- Must be planned and delivered within agreed timeframe, and before end of 2010/11
- Minimum bids considered – 1,000 properties with bids considered from consortia.
Bids were also considered against the following criteria and weightings:
- Must be value for money (based on average amount; with flex upward where justified on hard to treat grounds).
- Deliverability (priority will given to those bidders that are able to start early and deliver early).
- Must complement wider strategy for a place, support policy priorities and contribute to delivery of wider outcomes.
Housing stimulus package
As a result of April’s Budget the HCA received an additional £400m to unlock developments through Kickstart; £50 million social housing grant to allow local authorities to deliver new social housing (complemented by £50 million capital cover for associated prudential borrowing); up to £80 million to support delivery of the Mortgage Rescue Scheme; £84 million to provide cavity wall insulation in the social sector; £21 million for investment in innovative low-carbon heating systems. This was supplemented by the Prime Minister’s Building Britain’s Future announcement with a further £750 million to be allocated via the HCA’s National Affordable Housing Programme; £660 million to unlock developments through Kickstart; and £250 million to allow local authorities to deliver new social housing.
About the HCA
The Homes and Communities Agency is the single, national housing and regeneration agency for England.
Our vision is about creating opportunity for people to live in homes they can afford, in places they want to live and for local authorities and communities to deliver the ambition they have for their own areas.
This will be achieved by:
- Acting as the bridge between national targets and local ambitions, with a strong regional presence
- Through a process of 'single conversations' with local authorities, RDAs and sub regional partnerships
- Working effectively with the market, housebuilders, investors and other stakeholders
- Understanding the needs and aspirations of people and communities.
The HCA brings together English Partnerships, investment functions of the Housing Corporation, and the Academy for Sustainable Communities, with major delivery programmes of Communities and Local Government.