The Home Upgrade Grant Phase 1 (HUG1), part of the Sustainable Warmth Fund, allocated £218.6million to upgrade homes with clean heating solutions and energy-efficient measures.
The evaluation, however, also highlighted key challenges and areas for improvement to maximise the scheme’s impact in future phases.
The evaluation, commissioned by the Department for Energy Security and Net Zero (DESNZ), found that HUG1 successfully supported vulnerable households, particularly those off the gas grid.
Despite this, issues such as complex eligibility criteria, limited installer availability, and local authority capacity constraints posed barriers to full implementation.
Local authorities played a pivotal role in delivering the scheme, adopting a range of governance and delivery models, the report said.
It also found that authorities with prior experience in similar programs and strong local partnerships fared better. However, inconsistencies between proposed governance structures and actual delivery processes were noted, with some councils struggling to manage the scale of the programme effectively.
Reaching eligible households was another significant challenge. Awareness-raising campaigns and clear communication strategies were vital for uptake, yet some areas faced difficulties in identifying eligible homes and simplifying the application process. The report recommended enhancing outreach efforts and streamlining procedures to boost participation in future programmes.
Installer shortages and logistical challenges were highlighted as significant barriers to timely delivery, and while many households praised the quality of installations, delays due to limited skilled labour and administrative bottlenecks underscored the need for better workforce planning and more robust quality assurance mechanisms.
Despite these hurdles, the scheme delivered tangible benefits, including improved living conditions, reduced energy bills, and lower carbon emissions for participating households. However, the evaluation found significant variation in outcomes across regions, with local authority capacity and resource availability influencing success rates.
Looking ahead, the report stressed the importance of learning from HUG1 to design more effective programmes. Recommendations included adopting flexible governance structures, investing in local delivery capacity, and refining eligibility criteria to ensure support reaches those who need it most.
As the Government prepares for subsequent phases of the Home Upgrade Grant, it said these findings will be instrumental in shaping future efforts to combat fuel poverty and promote energy efficiency. While HUG1 has laid a solid foundation, the evaluation highlights the need for continuous improvement to achieve the programme’s ambitious goals.
The report can be accessed at https://assets.publishing.service.gov.uk/media/675027eb2956d2d4b1632a1e/home-upgrade-grant-phase-1-evaluation-report.pdf