Nottingham City Council has approved a bid to secure up to £1 billion in funding for the Warm Homes Social Housing Fund.
The figure is for a regional Midlands bid not just for Nottingham.
This initiative, part of the national Social Housing Decarbonisation Fund Wave 3, will be led by the Midlands Net Zero Hub with Nottingham serving as the lead authority. The council aims to support thousands of fuel-poor households across the Midlands region by implementing energy-efficient retrofits to social housing.
The bid, approved in late November, will seek up to £400 million in funding from the Department of Energy Security and Net Zero (DESNZ). The council’s decision includes updating and managing two Dynamic Purchasing Systems (DPS) to help procure the necessary services and appointing external legal support to facilitate the project’s mobilisation. Additionally, existing staff involved in domestic retrofit grant-funded schemes will have their contracts extended upon a successful funding application, with further recruitment to be approved as necessary.
The Warm Homes initiative follows in the footsteps of several prior energy efficiency projects, including the Local Authority Delivery (LAD) schemes and the Home Upgrade Grant (HUG).
One of the primary reasons behind the council’s decision was the feedback received from these previous schemes, which highlighted that many local authorities lacked the capacity to individually bid for such significant funding within strict timelines. As a regional consortium, the bid offers an inclusive opportunity for all local authorities and registered social housing providers across the Midlands to access essential funding, thereby ensuring that a greater number of vulnerable households can benefit.
The estimated management fee for the project is set to generate approximately £300,000, contributing to Nottingham’s Medium Term Financial Plan (MTFP) for the financial years 2025/26, 2026/27, and 2027/28. This funding is seen as crucial in supporting the city’s broader efforts to alleviate fuel poverty and work towards net zero emissions targets. The Midlands Net Zero Hub will be responsible for overseeing the fund’s administration and ensuring compliance with all regulatory requirements, including Section 90 of the Natural Environment and Rural Communities Act 2006.
The Warm Homes Social Housing Fund is intended to build upon the success of previous programmes, including the Social Housing Decarbonisation Fund (SHDF) and LAD initiatives, by focusing on domestic retrofit. By enhancing the energy efficiency of existing social housing, the project will not only help lower energy bills for some of the region’s most vulnerable residents but also contribute towards the government’s broader sustainability goals. Improving insulation and other energy-saving measures will reduce the environmental footprint of social housing while making homes warmer and more affordable for tenants.
To ensure the smooth running of the project, Nottingham City Council has also sought input from legal, finance, procurement, human resources, and property teams. It has committed to working closely with DESNZ and consortium members to ensure compliance with funding conditions. Any additional expenditure related to the project will require formal approval from the council’s legal, finance, and procurement colleagues.
The funding, if approved, will enable the council to continue its work in addressing the challenges of fuel poverty and decarbonisation, supporting those households most in need of affordable energy solutions. With the support of Midlands Net Zero Hub, this initiative represents a major step forward in achieving regional sustainability and improving living conditions for thousands of residents across Nottingham and the wider Midlands region.
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