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Leeds City Region Green Deal
Liz Hancock
The Leeds City RegionEconomic Engine of the North
95% self-contained
3m population
1.3m workforce
106,000+ businesses
250,000 out of work
£53 billion economy
The functional economic area in which businesses
operate, and people live their day-to-day lives
Leeds City RegionLEP Priorities
1: Unlocking the potential of business and enterprise
2: Enabling a flexible, skilled workforce
3: Facilitating a low carbon economy
4: Creating the environment for growth
– There will be the potential to retrofit a range of property types:
» Private owner-occupied housingSupport a range of properties and households who may be suffering or in danger of fuel poverty.
» Private rental marketFeedback from landlords suggests that smaller landlords can make affordable improvements through Green Deal
» Social housingOpportunity to improve hard-to-treat properties where other regeneration investment is scarce
» Non-domestic propertiesGreen Deal can address smaller Council owned properties and schools.
– Which could give rise to the following benefits:
» Local Job creation Economic analysis shows the potential for 314 FTE jobs created over three years and other indirect benefits from employment (for the £80m programme).
» Fuel poverty alleviationUse ECO and additional Local Authority funding to improve lives of fuel poor householders and protect against future fuel pricesand increases in cost of living.
» Health benefitsAddress coldness, damp and other related issued from poor air tightness which lead to strains on local health services.
» Carbon savingsHelp towards achieving carbon emissions reduction targets in LCR through reduced energy use.
» Low carbon sector growthPromote growth in the low carbon supply chain and improving green operations in small businesses.
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What benefits can the Green Deal bring to Leeds and the Region?
A key focus has been the ability of a large scale programme to deliver additional employment opportunities. The degree to which these jobs can be kept within the region or local economy will be in part dependent on the procurement process.
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Overview of the programme► Structure: As an anchor authority, Leeds would join up with partner boroughs from LCR to initiate and procure a Green Deal
project. Other boroughs could join as Partners or get involved as Promoter boroughs to enable the project to access their residents)
► Approval by the LCR Leaders’ Board: the business case will be presented and approved by the LCR on 11th April 2013
► Approval by the individual Local Authorities Exec Boards: the business case will have to be approved by the LCR councils’ executive boards.
► Memorandum of Understanding (MOU): the LCR will have to outline an MOU setting the expectations, commitments governance and control aspects of the project within the region.
► Pathfinder project: an initial scheme with a value of approx. £80m, including Carbon Saving ECO and funds from property owners. Such project could implement for approximately 12,000 properties
► Duration: Deployment over a three year period with the Pathfinder project then running over 8 years
► Target market: target private and social housing stock LAs within LCR. Marketing activities can be carried out if further adoption is required.
► Finance for the project will be mix of ECO, landlord contributions, householder capital and Green Deal loans.
► Procurement: Procurement process to select a Delivery Partner for the Pathfinder project.
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LCR SCHEME KEY OUTPUTS & BENEFITS
25 YEAR LIFETIME OF LCR SCHEME
– Generate and protect up to 24,000 jobs (long term & local, training opportunities)
– Inject over £5b into the local economy (esp. supply chains and SMEs)
– Create over £1.7bn GVA growth
– Energy savings to householders of 6.4m tonnes MW hours per annum
– Reduce CO2 emissions by 1.3m tonnes per year
INITIAL 3 YEAR LCR SCHEME
– Improve the energy efficiency and quality of at least 12,000 homes
– Inject and additional £80m of private sector investment into the energy
efficiency market in the LCR (sources: GDFC, householders, & ECO)
– Create and support over 650 direct and indirect jobs
– Enable local authorities to work with private sector provider to influence
Green Deal roll-out and priorities, and maximise investment in jobs and
apprenticeships
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LOCAL AUTHORITY ROLES
• Provide scale – secure lower costs for residents
• Support levering of significant additional investment & stimulating local jobs
• Support skills, low carbon & job creation programmes
• Use LA brands for honest marketing and promotion
• Oversee Provider to ensure high quality offer
• Target ECO to local regeneration priorities & solid wall homes
• Efficient development and delivery through collaboration
• If LAs wish to invest in GDFC – reinvest the ‘surplus’
• £2.6m LCR GD ‘Demonstrators’– testing the waters now
Fuel Poverty by Parliamentary Constituency
Private properties81%
Housing Association (incl. RSL)
10%
Local Authority Stock
9%
Listed dwellings
1.1%
Dwellings in conservation
area 7.0%
Dwellings in AONB0.4%
Dwellings in National Park
0.5% Non-conservation
90.9%
Terrace34.5%
Semi detached34.9%
Detached17.3%
Bungalow7.0%
Purpose built flat 4.4%
Converted flat1.9%
1,251,527
420,994
228,391
207,023 78,601
14,367 120,351
36,943 39,610
105,248
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
LCR TotalHousing Stock
CavitiesTreated
Cavity WallLaggards¹
Dwellings inCons. Areas
(90%)
ListedDwellings
New Build(Post 1995)
Back to back(90%)
AffordableWarmthEligible
Accessible
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Further analysis produced an accessible market for retrofit – LCR
¹ Estimate of those unlikely to take up cavity wall insulation based on poor take up under free schemes
² Those in Fuel Poverty may not achieve the Golden Rule and therefore may not be eligible for Green Deal without heavy or full
subsidy
Source: LCC stock data and team estimates
£560m1
Other FuelPoverty²
526,242
Pathfinder programme of 12,000 houses is 28% of 420,994 accessible market or 1/35 houses
Number of houses
Aim
“Increase the supply chain of contractors and grow the local green economy particularly focusing on training and employment opportunities for young people”
• Procurement Plan of the Main Contractor• Social Impact Plan• Targeted Recruitment and Training Plan• SME Engagement Plan• Social Return on Investment Model
This delivers, monitors and measures Social Impact
Procurement
• Embed Social Impact within the tender documents• Support the development of realistic key performance indicators and delivery plans• Support throughout the mobilisation• Feed into monitoring systems to ensure promises are kept
Social Impact Plan – the KPIs
• Educational Visits/Workshops –• Apprentices –• Total Employment –• New Employment –• LCR Employment –• Local Employment –• Work Experience –
SME Supply Chain Engagement
• Opportunity – Insulation, Glazing and Heating • Timescales – first wave, second wave• Support through CHY, partners and Main Contractor• Training and Accreditation• Delivery on site
Green Deal Demonstrator Programmes Green Deal Demonstrator
Programmes
Number of Measures Type of Measures
Leeds City Wide 186 props have been assessed and
wish to proceed with measures with a
further 306 working through the
assessment process
Full range of Green Deal measures, not
renewables, part or fully funded, glazing and
heating systems most popular but many
properties interested in EWI.
Leeds Small System Built Areas 64 properties EWI installed with a
further 61 thermally complete, and a
further 54 signed up in the third area
starting soon
Fully funded External Wall Insulation scheme,
with some additional measures such as doors
as required. Concentrated on 3 small areas.
Leeds Showhomes 4 void properties to allow local charities
to return to use.
Fully internally insulated with wall, underfloor
and loft insulation with new doors windows and
heating and heat recovery ventilation systems,
Calderdale 30 owners agreed in principle (private
and social housing in CSCO area)
5 random stone properties – pur cavity
wall foam installed.
Loft, cavity and solid wall insulation, double
glazing, heating systems mixture of tenures
Kirklees 33 fully funded properties complete in
target areas, a further 148 due to
complete by end May. 35 loan offers
issued (£125k) area wide to date.
2 show homes to receive EWI (stone
finish ) and new boilers
Currently working through waiting list
Full range of Green Deal measures, not
renewables, part or fully funded, glazing and
heating systems most popular but many
properties interested in EWI.
York 51 homes received advice, 42 fully
assessed, 19 homes installed with
EWI, 16 loft, 14 cavity and 1 A rated
boiler (10 submitted for planning - 9 PP
obtained 1 refused)
Loft, solid wall insulation, double glazing,
heating systems mainly on traditionally built
houses.
Bradford 12 measures installed Heating measures on prescription.
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What is Kirklees Energy Saver?
• DECC grant and ECO funded scheme
• Combination of grants and interest free loans
• Range of energy efficiency measures on offer
• Available to home owners and privately renting tenants
• Launched January 2013
• Delivered by YES projects
KES Achievements so far…
• Over 1,000 contacts
• 10 target areas – door knocking carried out
• Area wide offer
• Around 40 loans in process of being set up
• Average loan term 4 years, £4k
• 2 show homes
• 380 properties receiving measures
• Higher than expected customer contribution
• Most popular: EWI, boilers, glazing
Wrap Up Leeds +
• Designed to test as much of
the Green Deal as possible.
• Building on previous Wrap Up
Leeds Scheme
• Carried out in partnership with YES.
• Wide range of insulation, heating and other measures, no renewables.
• Using Green Deal Assessments to promote whole house improvements.
• Citywide, with one area base.
Demand - There is some
• Very little marketing needed
• Mostly single or dual measures not whole house of work
• Many people will have
done some work
• Little demand for loans
Benefits
• Working with the Council does provide benefits.
• Need to work with Green Deal partner to help identify areas which can act
as a base.
• Getting it right helps residents.
• Energy advice can make
extra savings
York Areas chosen
• high concentrations of privately owned or privately rented homes
• were dominated by traditional solid build Victorian brick terraced homes
• had received relatively little energy efficiency improvements because of the build type
• had been identified in previous stock condition and fuel poverty surveys as being some of the worst areas in the city in terms of fuel poverty and SAP ratings
Delivering for the People of York
Pilot Area in York
Aim of pilot
• Customer Journey
• Cross departmental engagement
• Network of assessors and Contractors
• Resident engagement
Delivering for the People of York
Leeman Road Pilot
• 51 private householders received free advice and information.
• 42 private householders received a free assessment and a free energy performance certificate.
Delivering for the People of York
Leeman Road Pilot
• 19 homes were improved with the installation of external wall insulation.
• 16 homes received free loft insulation and a further 14 received cavity wall insulation on their extensions.
• 1 property received a free, A rated boiler.
Delivering for the People of York
Three properties in York
Delivering for the People of York
Housing Challenges – Social Housing
□ Investment & Welfare Change
Housing Revenue Account and RP Business Plans
Stability of rental income
Investment risks
Housing Management costs
Move towards people centred housing management / intensive support
Energy efficiency opportunities
□ Increase investment in social rented housing
□ Tackling system build / non traditional property types, e.g. - tower blocks
□ Experimenting with innovative heating systems/renewables
□ Developing area based initiatives picking up a mix of social houses and privates (system built and solid wall)
□ Providing energy advice
Increasing warmth, reducing bills
Key Points for Procurement
• You must be registered on YORtender to bid for this scheme and to receive all project documentation !
www.yortender.co.uk
