The Sustainable Warmth Competition - an application for LAD3 and HUG

The Sustainable Warmth Competition is a single application for the third phase of Local Authority Delivery (LAD) as well as the new Home Upgrade Grant (HUG).

Only local authorities or Local Energy Hubs can apply for the Sustainable Warmth Competition, which aims to distribute funding for councils to improve domestic energy efficiency for fuel poor households.

BEIS will assess LAD and HUG elements of the application form separately ahead of awarding any funding.

Local Authorities have seven weeks to complete and submit their funding proposals with applications accepted from 16 June to 4 August 2021.

Plans must only look to improve properties in EPC band D or below, with only 30% allocation for D rated properties for both funding streams.

The schemes will fully fund measures for householder, however landlord must still contribute one third of the costs.

A fabric first method is being encouraged, however low-carbon heating measures such as solar PV and heat pumps are also available.

What are the differences between LAD3 and HUG?

LAD phase 3

The third phase of the Local Authority Delivery scheme is aimed at on-gas properties with a £10,000 maximum allocation per property.

Private rented properties can only receive up to £5,000, with an additional third of the costs coming from the landlord.

HUG phase 1

The Home Upgrade Grant is only applicable for off-gas properties and allows different allocations of funding per household depending on EPC banding and existing heating system.

For example, F&G rated properties may be able to receive up to £25,000 of funding if they do not have an electric heating system, whereas D rated properties using electric heating may only receive up to £10,000.

Delivery of LAD3 and HUG

Delivery of projects under Sustainable Warmth is forecasted to start in early 2022 and must be completed by 31 March 2023.

BEIS are encouraging councils to engage with local supply chains, and support the use of Small & Medium Enterprises (SMEs).

In an extensive question and answer article, BEIS confirmed that there will be no DPS or Framework agreements for use during the delivery window for LAD Phase 3 or HUG Phase 1.

The Government's guidance for Local Authorities can be found here.

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