Leaders Committee

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Leaders Committee

Leaders’ Committee

     Item no: 5 Homes Retrofit Project

Report by: Job title: Jared Boow Policy and Project Manager (Environment)

    Date: 09 June 2009

    Contact Officer: Jared Boow

    Telephone: Email: 020 7934 9951

Summary London Councils, London Futures (formerly London Collaborative), the

    GLA and the LDA are working together to develop and deliver a pan-

    London Homes Retrofit Programme to retrofit existing homes. It will be a

    comprehensive programme of measures to achieve significant carbon

    savings in London’s domestic housing sector through economies of

    scale, joining up funding programmes, joint lobbying, and partnership

    working. This report outlines progress to date and future plans for the

    programme and supports a joint presentation by Isabel Dedring, the

    Mayor’s Director of Environment Policy and Cllr Sean Brennan,

    Sustainability Portfolio Holder, London Councils. Neil Stubbings from the

    London Borough of Hillingdon, the lead borough representative from the

    project team, will also be in attendance at the meeting to respond to the

    points raised.

Recommendations It is recommended that the Leaders’ Committee agree to:

    ; Note progress to date on the project, its projected next steps and


    ; Endorse the programme and its aims in order to support further

    engagement with other member groups and with senior borough


Homes Retrofit Project


1. Homes are responsible for a significant proportion of CO emissions in London, accounting 2

    for 38% of emissions if aviation is excluded (see Figure 1). Many boroughs are looking to

    make significant CO savings through their local area agreement targets, and the Mayor 2

    has recently made a commitment to a large scale retrofit of Londoners homes to help meet

    his target of a 60% reduction in CO emissions by 2025. 2

    2. There are already many schemes in London that will deliver some sort of retrofitting

    measures to approximately 30,000 homes this year, but there is now widespread

    recognition that this level of activity will not be enough to deliver quick, significant and

    necessary reductions in greenhouse gas emissions from London’s homes. Modelling

    suggests that at current take up levels, such schemes will only deliver in total around 1

    million tonnes of carbon savings between now and 2015. By 2025, emissions from homes

    need to be reduced by 7.7 million tonnes, of which 3.9 million tonnes is estimated to be

    achievable through more comprehensive retrofitting (the remainder being from new build

    and improvements in energy supply to homes).

    Figure 1: 2006 CO emissions from London’s domestic sector 2

    Source - Mayor’s Climate Change Action Plan, 2007

    3. Much of the social housing stock in London has already been insulated through existing

    and past programmes, but there are many more difficult-to-treat dwellings, such as tower

    blocks, that still need detailed and specialist retrofitting action to bring them up to and

beyond the ‘Decent Homes standard’ in terms of thermal comfort. For private sector

    homes, various loft and cavity wall insulation schemes have been running for a number of years and have worked well, but the pace of delivery has been constrained by limited funding, and in some boroughs, by the limited number of homes suitable for these measures, particularly in inner London.

    1 (‘CERT’) 4. London has missed out on much of the Carbon Emission Reduction Target

    funding spent on the domestic sector across Great Britain. As the scheme is national, energy companies have provided most of the required emission savings actions outside London due to the lower cost per tonne of CO saved for installing measures such as 2

    insulation. The London Assembly’s recent study ‘Lagging Behind’ estimated it was unlikely

    that more than 4.5% of insulation projects under CERT’s predecessor programme, Energy Efficiency Commitment (EEC), were delivered in London, even though London represents 12.8% of the UK population. London therefore lost out on approximately ?100 million in energy efficiency funding over the period 2005 and 2008. London Futures have also investigated this issue over the last twelve months and come to similar conclusions, having recognised the need for a more joined up approach across the region to get more retrofit funding directed towards London’s housing stock.

    The opportunity

    5. There is a huge opportunity to realise benefits (not limited to CO emission reduction 2


    ; to offer the potential to deliver some benefit to all London households regardless of


    ; to implement energy efficiency measures in 1.8 million London homes

    ; to reduce carbon emissions, on average, by 8% by 2015 across London, contributing

    significantly towards meeting targets in current Local Area Agreements and their likely


    ; to increase the level of spend by energy utilities on energy efficiency in London to over

    ?100m per annum (equating to 2-3 times the current spend level), with an associated

    increase in levels of economic activity

    ; to create over 2,000 jobs for Londoners

     1 The Carbon Emissions Reduction Target (CERT) is a statutory obligation that requires the 6 major energy

    suppliers in Great Britain to deliver carbon dioxide emissions reductions in the domestic sector.

    ; to reduce annual fuel bills by at least ?60 per household, or up to ?150 where loft and

    cavity wall insulation is installed (between 5% and 12% of the average household’s fuel


    ; to create certainty and scale for installers, therefore delivering economies of scale and

    enabling the sector to ramp up its activity

    ; and, to deliver a genuine London-wide partnership project between boroughs and the


    6. There is also an important opportunity to demonstrate how the combination of individual technical retrofitting and broad based behavioural measures can achieve significantly more than either approach alone, as well as to secure recognition under CERT for properly

    managed schemes of this nature.

    Scope of the project

    7. To be successful, such a scheme needs to be attractive to Londoners to get their buy in. Key to this will be several elements, including providing:

    ; a door to door scheme that is easy to understand;

    ; initial ‘free’ easy measures;

    ; common branding, but with the ability to have a local context as well (e.g. additional

    borough branding);

    ; an offer available to homes of all tenures.

    8. The proposed joint scheme is two phased with Phase 1 offering ‘10 easy measures’ to all

    London households, backed up by an expansion of existing cavity wall and loft insulation schemes delivered to suitable homes (approximately one third of London homes). The proposed ‘10 easy measures’ will provide:

    ; low energy light bulbs

    ; block gaps in floors and skirting

    ; radiator panels

    ; draught proofing

    ; hot water tank insulation

    ; stand-by switches

    ; visual display units

    ; tap aerators

    ; showerheads

    ; benefits check/referral and initial assessment for loft insulation, cavity wall insulation

    and boilers.

9. This will be followed by ‘Phase 2 which will deliver ‘harder’ measures such as solid wall

    insulation, and energy efficient appliances such as boilers to qualifying households or

    those wishing to pay a discounted rate.

    10. The programme intends to reach 60% of London households over a five year period. The

    initial contact with households to deliver ’10 easy measures’ will be used to assess the

    suitability of each building for insulation and other carbon reduction measures, and to

    provide a platform for creating behaviour change in the use of energy, as well as providing

    referrals to borough benefits uptake teams.


11. The project has made significant progress to date.

    ; London Councils, London Futures (formerly the London Collaborative strand of the

    Capital Ambition programme), the GLA and the LDA are now working together to

    further explore this opportunity on a partnership basis. This joint work has involved

    carrying out background research, and further consultation with key stakeholders and

    best practice authorities outside London

    ; The project has secured funding from Capital Ambition and from the LDA to fund the

    management of the project and the implementation of pilot projects to be delivered by

    March 2010

    ; The programme has secured the ‘in principle’ involvement of about 50% of London

    boroughs. However, the intention is for all boroughs to sign up to taking part in the

    project. The project team is currently working with sub-regional housing areas to

    explain the scheme and gain further buy in from boroughs.


    12. There is a good level of interest amongst potential funders such as the energy companies

    but no clear commitments as yet.

    13. Capital Ambition is supporting the project with project funding of ?100,000. The LDA has

    committed funding of up to ?7.5 million for technical pilots and demonstration projects to be

    delivered in 2009/2010. The project team have costed full implementation of the scheme

    over 5 years to 2015 at ?500 million. The aim is for ?350 million of this funding to come

    from CERT, via energy companies. The balance of funding would need to come from

    other sources such as the Homes and Communities Agency (HCA), DECC, CLG, GLA,

    boroughs and ‘able to pay’ households.

Next steps and deliverables

    14. Members will receive a presentation from the Mayor’s Director of Environment Policy

    (Isabel Dedring) and the London Councils Portfolio Holder for Sustainability, Councillor

    Sean Brennan, outlining the next steps for the project in more detail. Neil Stubbings from

    the London Borough of Hillingdon, the lead borough representative from the project team,

    will also be in attendance at the meeting to respond to pointes raised.

    15. It is the intention of the partners to develop by April 2010 a viable plan to deliver a London-

    wide programme up to 2015. A number of deliverables are intended between now and

    April 2010 to assist this, with actions broadly falling into three areas

    ; Demonstrating the concept at a pilot-scale

    ; Development and roll-out of a pan-London scheme informed by the pilots

    ; Lobbying government to ensure that London receives a fair share of funding.

    16. In 2009/10 the partners plan to deliver a number of demonstration projects to up to 25,000

    homes through existing borough-led home insulation schemes, and will be funded primarily

    by development money from the LDA. Additional money is being sought from HCA and

    from the energy utilities (as part of their delivery of their carbon reduction obligation). If

    boroughs are able to contribute additional funds e.g. from their Targeted Funding Stream

    funds, then larger scale demonstration project will be feasible.

    17. In parallel, work on the longer term development of a pan-London retrofit scheme will occur,

    drawing on emerging lessons learned from the demonstration projects. The aim is to

    commence implementation of a large scale pan-London scheme around September 2010.

    The precise form of the scheme will be worked up during 2009/10.


18. By July 2009, it is intended that the project will have:

    ; secured sign up in principle from London authorities

    ; finalised details of pilot programme ready for launch by September/October 2009 ; have fully mobilised a cross-organisational team to deliver the project ; have commenced an initial small technical trial

19. By Oct 2009 it is intended that:

    ; the demonstration projects will have commenced; and

    ; the work to secure funding and framework for delivery phase of the main project will be

    in progress.

20. By Feb 2010 it is intended that:

    ; funding would have been secured in principle for main scheme

    ; detailed preparation will be completed for rolling out the main scheme including

    timetable, methodology and procurement approach

    ; details of the main programme launch would have been decided.

    ; launched the homes retrofit programme by the Mayor of London and the Chairman of

    London Councils.

    21. By April 2010 the overall aim will be to create a viable plan to deliver a London-wide programme up to 2015, which would:

    ; deliver 10 ‘easy measures’ free to 1.8 million households

    ; deliver loft and cavity wall insulation, heating controls and systems free, or at a

    discounted price for those able to pay in the private sector

    ; subject to feasibility and funding, supplement existing social housing programmes ; reduce COemissions by 0.9m tonnes pa, more than double the impact of existing 2


    ; reduce CO emissions by a further 0.33m tonnes pa, via delivery of a further 0.5 million 2

    loft insulations and 0.5 million cavity wall insulations

    ; deliver a phased programme of further measures as funding and technology allows,

    facilitated by data collected in the two previous phases. Such measures might include:

    solid wall insulation, boiler upgrades, ground source heat pumps, solar thermal

    technology, etc.

    22. The development and design of the programme will be supported by lobbying activity, to

    ensure the right policy environment is created for the delivery of large scale homes

    retrofitting in London. Unified lobbying, with clear messages from the Mayor, LDA, London

    Councils and individual Boroughs will maximise London's impact in Government. Every

    effort will be made to secure additional funds, both opportunistically and on a long term



23. A joint project team has been set up, overseen by Isabel Dering from the Mayor’s Office,

    Martin Powell from the LDA, and Faraz Barber from London Councils. This team has

    steered the development of the programme to date and includes:

    ; Neil Stubbings Hillingdon/London Futures

    ; Danielle Rippin London Futures project manager

    ; Michael Ojo London Councils Head of Environment

    ; Simon Whiteley - LDA

    24. A Project Board is now intended to be set up to take on the oversight role for this project.

    This Board will direct the work of the joint project team and will consist of:

    ; Isabel Dedring, Director of Environment Policy, GLA

    ; Hugh Dunnachie, Chief Executive, Hillingdon

    ; Annie Shepperd, Chief Executive, Southwark

    ; Faraz Barber, Director World City, London Councils

    ; A representative from the LDA


25. It is recommended that the Leaders’ Committee agree to:

    ; Note progress to date on the project, its projected next steps and deliverables;

    ; Endorse the programme and its aims in order to support further engagement with other

    member groups and with senior borough officers.

Financial Implications for London Councils

26. There are no specific financial implications from this report.

Legal Implications for London Councils

    27. There are no specific legal implications from this report.

Equalities Implications for London Councils

    28. There are no specific equalities implications from this report.

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