Mayor helps Londoners with bills with £58m fund boosting energy efficiency and living conditions across capital

Mayor helps Londoners with bills with £58m fund boosting energy efficiency and living conditions across capital 

• Mayor launches new Home Energy Saving Fund with £58.7 million investment secured from Government, following the launch of its Warm Homes Plan earlier this year. This new funding marks the start of the Mayor receiving new powers and funding to make London’s homes more energy efficient. 
• Funding will benefit up to 5,000 households living in some of London's most energy inefficient social homes - saving residents up to £500 a year on their energy bills, keeping them cooler during more frequent summer heatwaves and making it more affordable to heat homes in winter. 
• New funding builds on Sadiq’s previous £10million investment into making London's homes more comfortable and affordable to heat through his Warmer Homes London programme. Warmer Homes London has now upgraded over 1,000 homes delivering on the Mayor’s commitment to reducing fuel poverty.

The Mayor of London, Sadiq Khan, today announced more than £58m in new funding to improve the energy efficiency of up to 5,000 homes across the city, saving Londoners in some of the city’s low-income homes up to £500 a year on their energy bills and improving living conditions.

Ten per cent of Londoners are currently living in fuel poverty, forced to make the difficult decision between heating and eating. 

Much of the city’s housing stock is decades old or was built before new regulations came into place, meaning many buildings are difficult to heat in winter and to keep cool in high temperatures.

With extreme heat due to the climate crisis becoming a regular feature of summers in the capital, the Mayor’s recent Heat Ready London Plan revealed that around one million homes may currently be at high risk of overheating.

The Mayor’s new £58.7m Home Energy Saving Fund represents London’s share of £295m announced by Government to retrofit social housing, as part of its landmark £15 billion Warm Homes Plan. As the first devolved funding for retrofit, this also marks a step change in how Government is delivering grants to London, giving the Mayor new powers and funding to deliver at a regional level, better meeting the specific needs of the capital and Londoners.

The investment will allow social housing providers across London to improve their housing stock. This will make homes more affordable to heat through the installation of better insulation, solar panels and heat pumps – lowering energy usage and bills while also improving health by reducing the risk of damp and mould, and improving indoor air quality. Insulation and ventilation measures included in the scheme will also help keep homes cooler during heatwaves, helping Londoners manage the impacts of rising global temperatures. 

The home upgrades delivered are expected to slash carbon emissions by 107 kilotonnes - the equivalent to over 40,000 return flights to Sydney *  -  and will ensure the capital’s housing stock is fit for the future and help to boost London’s economy through the creation of green jobs and skills.

This new funding will be made available to London local authorities and housing associations and delivered by the Mayor of London with support from Warmer Homes London. Warmer Homes London, a joint scheme launched last year by Sadiq and London Councils to boost retrofit in the capital, with £10m investment from the Mayor to make homes across the city more comfortable, healthier and affordable. More than 1,000 homes have so far been retrofitted with measures including solar, insulation, glazing or low carbon heat. 

The Mayor of London, Sadiq Khan, said:  “Thousands of Londoners are living in inadequate homes that are freezing and damp in winter and unbearably hot during summer heatwaves. With this new funding,  we can transform these homes for the future, making them more energy efficient, while also driving down bills and improving living conditions. 

“As well as reducing fuel poverty, this will boost our economy, delivering more green jobs and skills so we can continue to scale up retrofitting across the city, supporting more Londoners to heat and cool their homes and reduce carbon emissions as we continue to build a fairer, more prosperous city for everyone.”

Mete Coban, Deputy Mayor for Environment and Energy, and Warmer Homes London Co-Chair said: “I welcome this significant investment from Government which enables us to urgently scale up retrofit across the city, improving the energy efficiency of Londoners’ homes and delivering on our net zero commitments.  

“No one should have to spend winter in a cold, damp home but 10 per cent of Londoners are currently living in fuel poverty, forced to make the difficult decision between heating and eating. 

“We’ve now delivered over 1,000 homes through Warmer Homes London - demonstrating on our commitment to reducing fuel poverty. By making homes cheaper to heat and cool, and improving indoor air quality, we are delivering healthier homes for Londoners and a fairer London for everyone.”

Councillor Stephen Cowan, Chair of London Councils said: "This devolved funding is hugely welcome and vital for ensuring that more Londoners benefit from greener, healthier and more affordable homes. Through Warmer Homes London, London Councils and the Mayor are working together to make sure this funding reaches those who need it most, in partnership with boroughs and housing associations.

“Today's announcement demonstrates how London's different tiers of government working effectively together delivers better outcomes for our residents: fewer homes affected by damp and mould, more families moving out of fuel poverty, and quality local jobs being created".

Clare Miller, Chief Executive of Clarion Housing Group and Vice Chair of G15, said: "The Mayor's investment is welcome news for Londoners. It will help more households reduce their energy bills and support our efforts to tackle fuel poverty and provide homes that are warmer in winter, cooler in summer and healthier to live in.

"The G15 provides homes for around one in ten Londoners and our members are already investing hundreds of millions of pounds to improve the energy performance of residents' homes through better insulation, low-carbon heating, solar panels and other retrofit measures.

"This funding will help us go further and reach more households, making a real difference to people's everyday lives. We also welcome the Government's decision to devolve and bring forward this funding to London, allowing it to be targeted where it can have the greatest impact for residents."

Kwajo Tweneboa, housing campaigner, said: “This is a welcome investment. No one should be living in a home that’s freezing in winter, unbearably hot in summer or making them ill because of damp and mould. Improving the energy efficiency of our homes will help cut bills, improve people’s health and make homes fit for the future. The key now is making sure this funding reaches the people who need it most and delivers real change on the ground.”