Nottingham City Council has secured more than £7.4 million in government funding to make private homes across the city warmer, greener and more energy efficient.
The £7,463,500 Warm Homes Local Grant (WH:LG), awarded by the Department for Energy Security and Net Zero (DESNZ), will be used to tackle fuel poverty, cut carbon emissions and support Nottingham’s ambition to become carbon neutral by 2028.
The funding will be managed through the Council’s Environment and Sustainability Division in partnership with the Midlands Net Zero Hub, helping to accelerate local energy infrastructure and retrofit projects. It will target private low-income households most affected by rising energy costs, providing measures to improve insulation, heating systems and overall home energy performance.
It also allows the authority to accept up to 50 per cent more if additional funds become available between 2025 and 2028. Up to 10 per cent of the total grant — about £743,650 — can be used for administrative and staffing costs, with around £500,000 covering the salaries of Nottingham City Council staff managing the project.
The scheme builds on previous home-energy improvement programmes in the city, including the Home Upgrade Grant Phase 2 (HUG2), which began in 2023 and has already invested over £1.65 million in improving energy efficiency for Nottingham households.
Under the new decision, the existing contract with YES Energy Solutions will be extended for one year to ensure continuity of delivery using £879,000 of remaining funds.
A new procurement process will then be launched for the second and third years of the Warm Homes scheme, with contracts expected to total around £6.6 million.
The council said the project will support local jobs in the green economy, strengthen supply chains and promote sustainable growth, while helping residents stay warm and reduce energy bills. Legal, financial and procurement advice confirmed that the scheme poses no risk to council budgets, as no match funding is required and 100 per cent of contractor and staff costs will be met through the grant.
