Contractor to Deliver the Warm Homes Local Grant Funding

The Government has introduced the Warm Homes: Local Grant (WHLG) to provide energy-saving measures, including insulation and low-carbon technologies, to residential properties. The delivery of this scheme will begin in April 2025 and is expected to run for 3-5 years.

The Liverpool City Region Combined Authority (LCRCA) had been allocated £31.8M for the consortium of local authorities in the Liverpool City Region (LCR). The scheme will be delivered over 3 years commencing April 2025.

There is potential for additional WHLG funding to be allocated during the Government's next spending review, and the delivery of the scheme may be extended to five years. LCRCA have retained 15% (4.7M) of the £31.8M funding and will allocate this depending on local authority performance and delivery.

The allocation of funding has been determined by LCRCA based on the proportion of private sector and owner-occupied housing stock within each local authority area. Liverpool has been allocated £6.7M of WHLG.

This consists of £5.8M Capital and £898,482.41 Admin and Ancillary Costs. Liverpool City Council has an established energy efficiency delivery framework, valued at up to £20 million, with three pre-approved contractors accredited to the required PAS 2030, PAS 2035, Trustmark, and MCS standards and would facilitate an efficient route to market.

It is critical to initiate the procurement process now so that scheme delivery aligns with LCRCA and DESNZ timelines. Delays in the procurement could impact the timely delivery of energy efficiency works.

The Energy Efficiency Framework currently includes three contractors, and it is proposed that a mini competition be conducted within this framework to appoint a contractor for the delivery of the WHLG. Procurement of the appointment of a Contract Administrator for the duration of the WHLG scheme is also required.

The appointment of the Contract Administrator is a requirement by LCRCA to issue instruction for works and oversee spend in accordance with Schedule of Rates. The funding for this post will be from the allocated Administration and Ancillary fund for the WHLG.