Local Authority Delivery (LAD) funding in-depth guide

The Government ring-fenced £500m in August 2020 for local authorities in England as part of the Green Homes Grant.

Councils can apply for funding to form energy efficiency retrofit schemes that offer the following measures:

• Insulation – Solid Wall, Cavity Wall, Underfloor, Loft, Room-in-Roof, Flat Roof, Park Home
• Low Carbon Heat – Air Source Heat Pump, Ground Source Heat Pump, Soar Thermal Water Heating.

Scheme can be open to homeowners and private renters, however landlords must contribute one third of the costs.

LAD phases

The scheme has evolved over several phases

Phase 1A - £74m of funding was allocated to 55 LA projects in 2020.

Phase 1B - £126m to 81 LA projects in Jan 2021.

Phase 2 - £300m of funding distributed via five Local Energy Hubs in the 2021/22 financial year

Phase 3 - £200m will be made available for new projects with details yet to be announced.

Installer regulations

Installers operating under schemes must ensure they are working to the processes of PAS 2035 and TrustMark.

They must complete extra steps through retrofit coordinators which will consider a retrofit strategy for the full property.

This will result in additional costs and pressure to fulfil requirements within budgets and in given timescales of the individual phases.

The new regulation also require additional ventilation requirements to tackle damp and other related problems.

Procurement

Councils interested in LAD funding should consider procurement ahead of an application.

Consider whether existing partnerships and frameworks can be utilised for advice and delivery.

Trusted support partners on frameworks are crucial to delivering schemes to the reporting and quality levels required.

If you need to start from scratch, be aware of tight timelines and demanding requirements.

DPS procurement routes are recommended.

Reporting requirements of LAD

LAD schemes demand monthly reporting on the following:

Monthly requirements:

• Number of applications and measures
• Costs
• EPC improvements
• Energy, carbon and bill savings
• Risks/ issues and mitigation

BEIS often run Q&A sessions to provide additional support on reporting.

Risks

Supply chain

• Capacity of individual installers – particularly with an influx of new schemes
• Supply of materials

KPI’s

• Reporting requirements need capacity
• Funding release - funding is released when certain KPI's are achieved
• EPC band C is unachievable for certain properties (ie. park homes with an EPC F or G)

Fraud

• Mitigation requirements need to be stated in detail

Costs

• Inflation
• Impact of PAS2035 adding extra costs for retrofit coordinators

Householders

• Effective promotion required to meet KPIs on number of householders

Weather

• Directly affects render process of EWI installations

COVID-19

• Householder hesitancy due to health concerns or isolation
• Impact of lockdowns on the supply chain

BEIS evaluation

BEIS aim to learn lessons to guide the future of energy efficiency retrofit funding.

Interviews and market assessment surveys will be led by evaluation contractors appointed by BEIS.

Local authorities and leading delivery partners will be required to participate.

LAD case study

North Lincolnshire Council is providing fully funded EWI to residents on low incomes through a LAD Phase 1 scheme.

The council partnered with YES Energy Solutions to win funding and manage the install of EWI to 53 properties in phase 1A.

Initial success led the project to win additional funding in phase 1B, expanding capacity to 150 of some of the most inefficient property types including park homes and system built houses.

YES had the knowledge and infrastructure to support the bidding process.

The scheme focussed on Park Homes due to their inefficiencies, low income residents and close knit communities.

Phase 1A has been completed, with the scheme's second phase due to be completed by September 2021.

YES' involvement in LAD

YES Energy Solutions are currently acting as customer journey support partners for the Midlands Energy Hub, assisting Lincolnshire and Leicestershire councils with a number of services.

We have been involved with LAD from the start, helping North Lincolnshire council and Bromsgrove and Redditch Councils access funding in phase 1 of the scheme.

Get in touch to find out more about YES' involvement in LAD.

T: 03309 126199

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