Key information
Decision type: Assistant Director
Directorate: Good Growth
Reference code: ADD2684
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 finished completing property retrofits in September 2023., The Warmer Homes team is currently managing a controlled closedown to be completed by 31 December 2023. The GLA also secured £12m from the Home Upgrade Grants Scheme (HUG2) to retrofit off-gas grid homes in 2023-25. The design of this project is complex with specific resource implications. These funds are delivered through the Mayor’s Warmer Homes programme.
The delivery and eligibility requirements for both schemes are complex, with DESNZ closely monitoring the project’s outputs, expenditure and closure.. External support is required to meet these requirements, to support the controlled closure and realisation of benefits from the Sustainable Warmth grant, and the setting up the project management structure and service delivery design for HUG2.
The approval of this ADD will allow Turner & Townsend Ltd to continue supporting the closedown of the projects funded by the Sustainable Warmth grant; and aid the setting-up of the HUG2 project.
Decision
That the Assistant Director of Environment and Energy approves:
• expenditure of up to £24,900 on project management support to ensure the successful project closure of Sustainable Warmth; and the design and controlled start of the Home Upgrade Grant 2 delivery.
• the extension of support from Turner & Townsend Ltd from the Crown Commercial Services Framework RM6314 Demand Management and Renewable Frameworks.
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 (MD) 2900). In 2023 it was awarded a further £12m of Home Upgrade Grant 2 (HUG2) funding (see MD3132). Both funds are used to deliver the Warmer Homes programme by improving the energy-efficiency of low-income Londoners’ homes.To date over 4,500 homes have been so improved.
1.2. These funding streams came with complex eligibility criteria for the households and their dwellings, with low-income and low energy-efficiency homes as 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’s closedown must be completed by 31 December 2023 and the HUG2 programme procured by winter 2023-24. The closure of Sustainable Warmth and the design and launch of HUG2 are resource intensive and require technical specialists and more resource capacity than GLA has in-house.
2.1. The service is completing discreet technical tasks and providing one-to-one consultancy to support the controlled closedown of Sustainable Warmth and preparation for delivery of HUG2 schemes respectively. This includes support on reviewing and reconciling the financial audit trail for the programme and assisting in completing final reports to DESNZ. Turner & Townsend Ltd is also providing 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 35 days of consultant time. This is in addition to the 36 days of consultant time funded by the amount agreed in ADD2652.
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 Ltd.
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 from Black, Asian and Minority Ethnic 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 MD2900 and MD3132, the Warmer Homes programme has clear links to delivering on the objectives of the London Environment Strategy, the 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 £24,900 on procurement of project management support to ensure the successful project closure of Sustainable Warmth; and the design and controlled start of the HUG2 delivery.
5.2. This expenditure will be funded from the Energy Unit Retrofit London Budget.
5.3. All expenditure will be incurred in the 2023-24 financial year.
6.1. The project will be delivered according to the timetable outlined below:
Signed decision document
ADD2684 - Project Support with Warmer Homes Project