Agenda item

Consideration was given to a report of the Deputy Chief Executive, People and Place which sought approval to accept Grant Funding Agreements with the Greater Manchester Combined Authority and to appoint contractors to deliver the Greater Manchester Green Homes Grant Local Authority Delivery Scheme.

In July 2020, the Chancellor announced £2 billion of support through the Green Homes Grant (GHG) to save households money; cut carbon; and create green jobs. The GHG was comprised of up to £1.5 billion of support through energy efficiency vouchers and up to £500m of support allocated to English Local Authority delivery partners, through the Local Authority Delivery (LAD) scheme.

On 4 August 2020, the Department of Business, Energy and Industrial Strategy (BEIS) announced the GHG LAD competition for the first £200m phase of funding.

The primary purpose of the GHG LAD scheme is to raise the energy efficiency rating of low income and low EPC rated homes (those in EPC band E, F or G).

BEIS expected the GHG LAD competition to result in the following outcomes:

·         Tackle fuel poverty by increasing low-income homes energy efficiency rating while reducing their energy bills.

·         Support clean growth and promoting global action to tackle climate change.

·         Support economic resilience and a green recovery in response to the economic impacts of COVID-19, creating thousands of jobs.

·         Use learnings from the delivery experience to inform the development and design of further energy efficiency and heat schemes.

The GMCA approached Oldham Council to develop a Greater Manchester (GM) GHG LAD Scheme bid, as Oldham is the only Council within GM that has an OJEU procured Framework Agreement for energy efficiency measures (through its Warm Homes Oldham scheme).

On 28 August 2020, the GMCA submitted a Phase 1A bid for £4.7m to mainly retrofit External Wall Insulation and Air Source Heat Pumps in homes of all tenures occupied by residents with a gross annual household income of less than £30,000 using local Trustmark registered contractors.
Full details of the Phase 1A bid were reported to the GMCA meeting held on 25 September 2020.
On 1 October 2020, BEIS confirmed that the GMCA’s application was successful and awarded the bid amount in full.
However, BEIS was only able to award £76m from the £200m available nationally. Therefore, it announced that the remaining £124m would be awarded through a Phase 1B competition, which was open to existing and new applicants.
On 3 December 2020, the GMCA submitted a Phase 1B bid for £5.6m to mainly retrofit External Wall Insulation, Air Source Heat Pumps and Solar PV Systems in homes of all tenures occupied by residents with a gross annual household income of less than £30,000 using local Trustmark registered contractors.
Full details of the Phase 1B bid were reported to the GMCA meeting held on 18 December 2020.

On 27 January 2021, BEIS confirmed that the GMCA’s application was successful and awarded the bid amount in full.
The GMCA had issued the following Grant Funding Agreements to Oldham Council:

Most of the Private Sector Housing funding is to be paid to EON Energy Solutions Ltd to deliver energy efficiency measures to homes across Greater Manchester.

Some of the Private Sector Housing funding was to be retained by Oldham Council to cover the project management costs incurred by the Housing, Warm Homes Oldham, Procurement, Legal and Finance teams.

Some of the Social Housing funding was to be paid to Inspiral Oldham Ltd to part fund External Wall Insulation to Crosswall Construction Council homes and Cavity Wall Insulation to Traditional Construction Council homes on the Primrose Bank Estate. The shortfall is to be met from the Housing Revenue Account Capital Programme.

The balance of the Social Housing funding was to be paid to Oldham Retirement Housing Partnership Ltd to part fund Solar PV Systems to Council bungalows. The shortfall is to be met from the Housing Revenue Account Capital Programme.

These measures would:

·         Improve energy efficiency and reduce fuel poverty, which will help to prevent illnesses linked to cold conditions.

·         Contribute towards meeting the Council’s target for the borough to be carbon neutral by 2030, which will help to tackle climate change

·         Provide work for local contractors and apprenticeships or training for new green jobs, which will help with the economic recovery from the impact of COVID-19.

Option/alternatives considered

Option 1 - To accept the Grant Funding Agreements issued by the GMCA detailed in 2.1 above.

·         To issue a Call-off Order and enter into a contract with E.ON Energy Solutions Ltd under the Warm Homes Oldham Framework Agreement to deliver energy efficiency measures to private sector homes across Greater Manchester, as detailed in the GM GHG LAD Scheme Phase 1B bid.

·         To issue an Authority Notice of Change to Inspiral Oldham Ltd under the Housing PFI Project Agreement to install External Wall Insulation to Crosswall Construction Council homes and Cavity Wall Insulation to Traditional Construction Council homes on the Primrose Bank Estate.

·         To issue a Subsequent Phase Notice(s) to Oldham Retirement Housing Partnership Ltd under the Deed of Variation (Number 2) to the Housing PFI Project Agreement to install Solar PV Systems to Council bungalows.
To approve the use of funds from the Housing Revenue Account Capital Programme to meet the shortfall in grant funding for 3.13 and 3.14 above.

Option 2 -To reject the Grant Funding Agreements issued by the GMCA detailed in 2.1 above.

·         The energy efficiency measures would not be delivered to private sector homes across Greater Manchester; the External Wall Insulation would not be installed to Crosswall Construction Council homes; the Cavity Wall Insulation would not be installed to Traditional Construction Council homes; and the Solar PV Systems would not be installed to Council bungalows.

·         The grant funding would have to be returned to BEIS with the consequential reputational damage that this would cause to Oldham Council and the GMCA.

RESOLVED – That the Cabinet would consider the commercially sensitive information contained at Item 18 of the agenda before making a decision.