Key information
Decision type: Assistant Director
Directorate: Good Growth
Reference code: ADD2652
Date signed:
Date published:
Decision by: Catherine Barber, Assistant Director of Environment and Energy
Executive summary
The GLA was awarded £40.2m from the Sustainable Warmth grant by the Department for Energy Security and Net Zero (DESNZ) in 2022-23. This programme is closing in September 2023. The GLA also secured £12m from the Home Upgrade Grants Scheme (HUG2) to retrofit off-gas grid homes in 2023-25 which also comes with specific resource implications. These funds are delivered through the Mayor’s Warmer Homes programme.
The delivery and eligibility requirements are complex, with DESNZ closely monitoring the outputs, expenditure and closure of the project. External support is required to meet these requirements, to support the controlled closure and realisation of benefits from the Sustainable Warmth (SW) grant and setting up the project management structure and design process for HUG2.
A Technical Assistance provider was assigned to the GLA by DESNZ. They have provided high quality support since December 2022 to June 2023 to conduct stakeholder management and engagement, including project design and procurement work to set up the HUG2 project. We require further project management support to enable a successful launch of HUG2 and closure of SW in Autumn this year, with both activities running concurrently.
Decision
That the Assistant Director of Environment and Energy approves:
1. Expenditure of up to £25,000 on procurement of project management support to ensure the successful project closure of Sustainable Warmth, design and controlled start of the Home Upgrade Grant 2 delivery.
2. The appointment of Turner & Townsend Consulting Ltd from the relevant framework.
Part 1: Non-confidential facts and advice
1.1. In 2021 the GLA was awarded £40.2m of national Sustainable Warmth funding (see Mayoral Decision (MD2900) and in 2023 was awarded a further £12m of Home Upgrade Grant 2 funding (see MD3132). Both funds are used to deliver the Warmer Homes programme by improving the energy efficiency of the homes of low-income Londoners, which to date has improved over 4,500 homes.
1.2. These funding streams came with complex eligibility criteria for both the households and their dwellings, with low income and low energy efficiency homes the target. Funds are available to all tenures, but private and social landlords must contribute towards the cost.
1.3. The current Sustainable Warmth programme must be completed by September 2023 and the Home Upgrade Grant 2 programme procured by winter 2023-24. The closure of Sustainable Warmth and design and launch of Home Upgrade Grant 2 are resource intensive and require more technical specialism and capacity than the GLA currently has in-house. It requires following an Infrastructure Projects Authority Closure process.
2.1. The service would be delivered over group support, workshops and a limited amount of 1:1 consultancy to support the closure, design and launch of the Sustainable Warmth and Home Upgrade Grant 2 schemes respectively. We also require strategic support due to the challenges that the GLA has been facing over the last few months, particularly on resourcing and the ambition to build a delivery model that would be replicated for future funded programmes.
2.2. The support would amount to approximately 34 days of consultant time.
Procurement approach
2.3. In line with the GLA Contracts and Funding code an existing Crown Commercial Services framework (RM 6314 Demand Management and Renewables Framework, Lot 5 – Carbon Net Zero Consultancy) will be used to appoint Turner & Townsend Consulting Ltd. The contractor is already supporting us via a Government funded technical assistance facility and is familiar with the programmes.
3.1. Under section 149 of the Equality Act 2010, as a public authority, the GLA is subject to the public sector equality duty and must have due regard to the need to:
• eliminate unlawful discrimination, harassment, and victimisation
• advance equality of opportunity between people who share a relevant protected characteristic and those who do not
• foster good relations between people who share a relevant protected characteristic and those who do not.
3.2. Protected characteristics under section 4 of the Equality Act are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sex orientation, and marriage or civil partnership status (all except the last being “relevant” protected characteristics).
3.3. The GLA is taking appropriate steps to ensure there are no potential negative impacts on those with protected characteristics in relation to the Warmer Homes programme. Those with protected characteristics will gain from the positive benefits of this scheme in equal measure should their households be eligible, and there will be equality of access to participate in the delivery and benefit from the scheme, without discrimination. Emphasis is placed on recruiting applicants form BAME communities and those with disabilities as they are disproportionately impacted by fuel poverty and its impacts. Support with delivery will help ensure that the programme reaches those most in need.
4.1. As detailed in the relevant MDs (MD2900 and MD3132) the Warmer Homes programme has clear links to delivering on the objectives of the London Environment Strategy, Fuel Poverty Action Plan, Equality, Diversity and Inclusion Strategy and the Health Inequalities Strategy.
4.2. Governance arrangements will be as those outlined in the relevant MDs.
4.3. Key risks are listed below:
4.4. There are no conflicts of interest to note for any of the officers involved in the drafting or clearance of this decision form.
5.1. Approval is requested for expenditure of £25,000 on procurement of project management support to ensure the successful project closure of Sustainable Warmth, design and controlled start of the Home Upgrade Grant 2 delivery.
5.2. This expenditure will be funded from the admin and ancillary budget of the Sustainable Warmth and HUG2 programmes which were previously approved under MD2900 and MD3132.
5.3. All expenditure will be incurred in the 2023-24 financial year.
None.
Signed decision document
ADD2652 Project support with Warmer Homes programme SIGNED