ADD2576 Approval of budget spend for Warmer Homes 3 marketing

1.1. The Mayor wants to make London a net zero-carbon city by 2030, while at the same time protecting the most disadvantaged by tackling fuel poverty. The COVID-19 pandemic has presented London with its most challenging period in recent history; and missions to deliver a Green New Deal and a Robust Safety Net are central to London’s recovery programme.

1.2. Low-income Londoners are facing an exceptionally challenging period, with the initial and ongoing impacts of coronavirus exacerbated by rising energy prices. In April 2022 energy prices increased by 54 per cent and are set to increase further in October. The Warmer Homes programme is focussing on immediate actions of making homes greener and warmer; reducing energy use; and, therefore, lowering bills and cutting carbon. These actions will particularly help the most vulnerable Londoners who are disproportionately affected by the rising cost of living.

1.3. The government’s Clean Growth Strategy sets out aspirations for all fuel-poor homes to be upgraded to Energy Performance Certificate (EPC) Band C by 2030; and for as many homes as possible to be EPC Band C by 2035 where practical, cost-effective, and affordable. The statutory fuel poverty target for England, set out in 2014, “is to ensure that as many fuel-poor homes as is reasonably practicable achieve a minimum energy efficiency rating of Band C, by 2030”. Sustainable Warmth: protecting vulnerable households in England, published in February 2021, is the government’s fuel poverty strategy, outlining steps towards this target. The Mayor’s Fuel Poverty Action Plan lays out actions to help achieve this target in London.

1.4. The GLA has received £40.24m in funding from the BEIS Sustainable Warmth Scheme to upgrade energy inefficient homes of low-income households in London. The projects will complete by March 2023. The scheme consists of two funding streams: Local Authority Delivery Phase 3 to support low-income households heated by mains gas; and Home Upgrade Grant Phase 1 for low-income households off the gas grid. To be eligible for funding, households must have an income of below £20,000 per annum after tax, national insurance and housing costs; and an EPC rating of D or below. The number of homes that can start with an EPC rating of D is capped at 30 per cent of all households installed with a measure with funding from the scheme. The key outputs of the programme are:

• 3,205 low-income households supported: these households will benefit from a range of energy efficiency measures such as solid wall insulation, heat pumps, flat roof insulation, underfloor insulation, triple glazing and solar photovoltaics

• minimum annual fuel bill savings for Londoners of £903,000

• minimum annual CO2 savings of 3,493 tCO2

• minimum annual energy savings of 11,949,000 kWh.

1.5. We also have a KPI from BEIS of contacting 80,000 homes by 31 December 2022, and 44,000 of these by 30 June. The pre-election period has impacted significantly on this target.

1.6. To mitigate for the delay in publicity for the programme, the Warmer Homes team would like to undertake a cross-London mailout during May and June.

1.7. The marketing material will take the form of postcards, designed by the GLA Design team, and printed and sent by GLA contractors. They will use an updated version of a design previously approved for Warmer Homes 1 in 2018.

1.8. To ensure the GLA is reaching eligible households, the Warmer Homes team will use data to focus marketing and engagement where there is likely to be high conversion rate from application to retrofit completion.

1.9. The Warmer Homes team is working with boroughs across London to deliver targeted engagement in the form of addressed letters to low-income, low energy-efficiency homes. This funding will be the subject of future decision forms.

2.1. To create marketing materials in the form of postcards to be sent to households potentially eligible for Warmer Homes 3 funding.

2.2. Data will be used to target eligible households to ensure value for money.

2.3. Focused engagement will support the GLA in reaching its target of retrofitting 3,205 households with funding from the Sustainable Warmth programme by March 2023.

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; and foster good relations between people who share a relevant protected characteristic and those who do not. 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).

3.2. The GLA will take appropriate steps to ensure there are no potential negative impacts on those with protected characteristics in relation to the development, design, targeting, marketing and delivery of the scheme. This will be done by ensuring compliance with the Mayor’s Equality, Diversity and Inclusion Strategy; and developing and testing in line with GLA guidance on equalities and diversity. 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.

3.3. The programme has been designed in line with the London Environment Strategy, and the proposals therein were tested to ensure they had due regard to the public sector quality duty. The programme will target residents who are in or at risk of fuel poverty, and homes with poor levels of energy efficiency; and it will aim to promote holistic, whole-house energy efficiency retrofits. The programme is therefore designed to advance equality of opportunity; and support those who are particularly vulnerable, whether as a result of their protected characteristics or other factors, such as their health or personal circumstances. It is therefore expected that this scheme will have a positive impact on lower-income and fuel-poor households directly through the home refurbishments. Indirect benefits are also anticipated by catalysing greater awareness of energy use and the opportunities for people to reduce their energy consumption and bills, whilst protecting their health.

Links to mayoral strategies and priorities

4.1. Alongside its central role in delivering the Fuel Poverty Action Plan this proposal also aligns with relevant actions in the London Environment Strategy; the Equality, Diversity and Inclusion Strategy; and the Health Inequalities Strategy.

4.2. Relevant recovery missions are as follows:

• A Robust Safety Net: the pandemic has impacted on Londoners’ incomes and household bills and support from the Warmer Homes Programme will help to relieve hardship.

• A Green New Deal: Londoners living in fuel poverty are more likely to experience cold, damp homes. The Warmer Homes Programme supports access to funding for heating and insulation improvements.

Key risks and issues

4.3. Failure to receive approval would render the Warmer Homes team unable to undertake marketing to meet our KPIs; and would impact negatively on delivery of the programme.

Conflicts of interest

4.4. There are no known conflicts to declare regarding those involved in the drafting or clearance of this form.

5.1 Expenditure of £49,500 is required to undertake marketing activities for the Warmer Homes Programme. The intention is to target low-income London wide homes eligible for energy efficiency funding.

5.2 The proposed expenditure will cover the design, print and mail out of marketing materials. Where possible costs will be contained in house, particularly with the designing stage.

5.3 This will be funded from the GLA’s 2022-23 Warmer Homes Revenue budget.

6.1 None required.