North East Combined Authority

• We developed a report setting out a vision, business case and recommended next steps for a one-stop shop housing retrofit programme for the North of Tyne region.
• The one-stop shop will be led by North East Combined Authority.
• The report found that leadership from local or combined authorities is key to delivering home retrofit programmes.
• It also found the one-stop shop approach can help overcome the complexity of delivering these programmes.

This work was started with the former North of Tyne Combined Authority (NTCA). In May 2024, NTCA was dissolved and its team and functions moved into the new North East Combined Authority (NECA).

NECA is led by an elected mayor and cabinet. It covers a region of approximately two million people across the seven local authority areas of County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland.

NECA wanted to develop a business case for a large-scale retrofit programme that supported its then-three constituent local authorities: Northumberland County Council, North Tyneside Council and Newcastle City Council

As NTCA moves into NECA, this should be expanded to cover the authority’s new, wider geography.

The retrofit programme will build on existing activity and funding in the region. This includes the Energy Company Obligation, Green Homes Grant and Local Authority Delivery Schemes, Sustainable Warmth Competition, and Social Housing Decarbonisation Fund.

There were four parts to the work:

1. Developing the business model for a one-stop shop energy advice centre. Designing a fully costed delivery model showing how the service could be financed through income generation, start-up grant funding and gap funding (if needed) from local authorities.
2. Technical project development and support. Working with local authorities and regional stakeholders to identify a pipeline of potential pilot retrofit projects. This built on the existing local authority and registered provider pipeline of projects and retrofit funding applications.
3. Financial and economic modelling to support the development of pilot schemes where there are opportunities to implement new and innovative funding models.
4. Developing an implementation model for investment in retrofit at scale. The business case and implementation model are key in delivering a major retrofit programme to:
   • Assess the potential for energy efficiency retrofit.
   • Understand what’s needed to deliver this.
   • Work in partnership to speed up delivery.

In 2021, NECA (then NTCA) commissioned us, in partnership with Accelar and Frontier Economics, to develop a robust evidence base to inform the business case for a large-scale housing retrofit programme.

This followed our previous report for the combined authority, which helped to build this evidence base.

Using our in-house expertise and experience, we iteratively worked through each part. We engaged with stakeholders from across the region to develop the solution and recommendations outlined in the report.

The report recommended the following:

1. Launch a one-stop shop as a minimum viable product, with potential to develop in the coming years. This will ensure the area remains at the forefront of the evolving UK housing retrofit sector and is well-placed to scale up delivery.
2. NECA outsources the tools and resources needed to operate the one-stop shop minimum viable product.
3. The one-stop shop complements and supports existing local service providers.
4. Building on work to date, NECA local authorities agree on the ambition of the core one-stop shop service and commit to supporting it.
5. Ensure security of revenue for the one-stop shop targeted projects remains a focus following this phase of work.
6. Align the Local Energy Demonstration Projects funding proportion for with the UK Shared Prosperity Fund.

The report found that leadership from local or combined authorities is key to delivering home retrofit programmes. This is due to:

• The complexity and technical nature of delivery.
• The need for a trusted partner to give homeowners reassurance.
• The need for high levels of coordination across multiple actors.

The one-stop shop approach can help overcome this complexity. Multiple services are bundled together to create an end-to-end journey for homeowners. This includes making people aware of the need to upgrade their homes, carrying out assessments, arranging contractors and organising finance.

The report proposed governance structures and branding and outlined risks for delivering the one-stop shop. It also provided data and equalities impact assessments for the programme, as required by NECA.

Learn more about the one-stop shops we’ve delivered, and how we’re working with local governments to bring this approach to more people in England.