The LAD scheme aims to raise the energy efficiency of low-income and low EPC rated homes (those with Band E, F or G)
This includes those living in the worst quality off-gas grid homes, delivering progress towards reducing fuel poverty, the phasing out the installation of high carbon fossil fuel heating and the UK’s commitment to net zero by 2050.
Local authorities in England (individually or as part of a consortium bid with other local authorities / partners) can submit bids for funding to improve the energy efficiency of the homes of low-income households in their areas.
- households should have a combined income of no more than £30,000
- homes to be improved should be currently rated as EPC E, F or G
- 100% subsidy for owner-occupiers (up to £10,000)
- two third subsidy for social and private landlords (up to £5,000)
Bids can include previously developed proposals, or use existing delivery mechanisms or new proposals that meet the desired outcomes of the scheme.
The minimum bid is for £500,000. There is no maximum bid but the total initial fund is for £200 million. Current guidance suggests that measures should be complete by end March 2021.
A further £300 million for 2022 will be made available via the Local Energy Hubs later in 2020/21. Allocations to Local Authorities for future years under LAD will be determined at the forthcoming Autumn Spending Review (2020).
The funding should be targeted at low carbon heating and insulation in homes currently rated as EPC E, F or G. 100% subsidy up to £10,000 per home is available for low-income owner-occupiers (below £30,000 household income). A lower subsidy of up to £5,000 is available for social or private landlords (a contribution of one third will be required from the landlord) here.
Up to 15% of the grant funding can be used to fund administrative, delivery and ancillary works to support delivery such as the completion of EPC, essential repair, maintenance and preparation of properties to facilitate energy efficiency upgrades and other support as required for low income households.
Contractors for low carbon heating must be MSC registered. Trustmark registration is preferred for energy efficiency contractors but not essential (unlike for the voucher scheme). However, local authorities not using Trustmark installers will need to specify how they will ensure good quality work will be undertaken, the steps taken to ensure consumer protection and consumer redress.
Projects under the next LAD delivery phase (£300 million) for 2021/22 will be to be required to have Trustmark registered status and, where applicable, PAS 2035:2019 standards.
Measures
- The measures are the same as those eligible under the GHG vouchers scheme.
- As with the voucher scheme, neither fossil fuel heating (or repairs) nor biomass heating are eligible measures.
Cross-funding
- Households should not be in receipt of LADs and Green Homes Grant vouchers GHG vouchers (the onus is on local authorities to ensure cross funding does not happen).
- LAD cannot be blended with other government schemes such as RHI or ECO for the same individual measure. However, it is possible for installations to be undertaken for the same Green Homes Grant Local Authority Delivery. For example, a contractor delivering support to a household may be funded through LAD to install a heat pump and funded separately by ECO to install solid wall insulation.
- LAD funding can be blended with other third-party finance or Local Authority budgets to deliver additional support to communities (for example topping up total subsidy for a measure / package of measures).
Monitoring, evaluation and reporting
LAs will be required to keep records of housing stock EPC ratings prior to installations. Options for calculating energy savings include, but are not limited to:
- Use of pre and post EPC certificates, including providing reference numbers of each EPC.
- Conducting pre and post assessments under the PAS2035 installation standards (where appropriate), including providing reference numbers of each PAS2035 lodgement.
- Conducting pre and post SAP 2016 energy assessment, including evidence of calculations.
Key dates
- 4 August 2020: guidance goes live and competition opens
- 10 August 2020: commissioning webinar (email LAD.project@beis.gov.uk to register interest)
- 1 September 2020: final submission deadline (12 noon)
- 28 September 2020: final allocation list announced and funding allocated through grants. Delivery of projects must take place over 20/21
- 31 March 2021: project complete
Read the full guidance now.