National Grid targets fuel poverty with £150m fund to warm homes

Over 9,000 homes will benefit from the first payments from National Grid's £150m Warm Homes Fund

14 Dec 2017

• 9,000 homes set to benefit from first round of payments from new Warm Homes Fund
• £150m fund established by National Grid following sale of stake in gas distribution business
• Money will tackle fuel poverty in hardest hit rural and urban communities across the country

National Grid has today announced that over 9,000 homes ranging from island cottages on Orkney to terraced houses in London are set to benefit from the first payments from its new £150m Warm Homes Fund.

The fund was set up using part of the proceeds from the sale of the company’s majority stake in its gas distribution business. It will fund the installation of affordable heating solutions in fuel poor households which don’t use mains gas as their primary source of heat.

The £150m from National Grid comes on top of the £589m already being returned to consumers on a voluntary basis by the company, bringing the total announced this year to £739m.

Following the first round of bidding, a total of £33m is now being awarded to 35 local authorities and social landlords representing partnerships across England, Scotland and Wales.

The money will be used to provide new heating systems for homes and will also fund programmes to help people with health conditions living in fuel poor households.

The awards include £5m to Stroud District Council, £3.5m to Cornwall Council, £2.8m to the councils of Suffolk and £1.5m to Orkney Islands Council. Others will help authorities targeting inner city fuel poverty. Greater Manchester Combined Authority will receive £1.8m and Islington, representing a consortium of boroughs will receive £1.5m. (List of successful bidders below).

John Pettigrew, Chief Executive of National Grid said: “The aim of our new fund is threefold; to help to reduce bills, make fuel poor households warmer, and improve the health of people suffering the most severe levels of fuel poverty.

“Around 4.5 million households across the country are in fuel poverty with people not able to heat their homes enough to stay warm and healthy. Many are struggling on low incomes and are relying on heating systems that are expensive to run or don’t heat their homes properly. In many cases, because of their circumstances or the type of property they live in, they can’t apply for existing grant schemes.”

“National Grid has decided to make this significant voluntary contribution of £150m to establish the Warm Homes Fund in recognition of the challenges that people face living in cold, damp and energy inefficient homes.”

The fund is managed by Affordable Warmth Solutions, a Community Interest Company (CIC) which was established by National Grid in 2008 to fight the misery of fuel poverty.

The Warm Homes Fund was launched in late spring 2017 and provides financial support for the installation of affordable heating solutions in many thousands of fuel poor households which don’t use mains gas as their primary source of energy.

One of the objectives of the fund is to maximise commercial opportunities from partner organisations to bring in additional funding. More than £30m has already been committed by partner organisations.

Jeremy Nesbitt, Managing Director of Affordable Warmth Solutions said: “We are excited about this investment from National Grid and we’re indebted for the support of our communications partner, National Energy Action (NEA) in reaching our target audiences.”

“Solving the issues associated with Fuel Poverty continues to challenge many of our stakeholders and the feedback we’ve already received provides evidence of how the Warm Homes Fund will make a positive difference to thousands of homes throughout the country.”

The £150m will be awarded through three rounds of funding. Bids are now being invited from for the second round of funding from local authorities and registered social landlords. Details can be found on the website below:

Warm Homes Fund Round One – Successful Lead Bidders, many acting on behalf of consortiums

Basingstoke and Deane Borough Council

Bromford Housing Association

Clyde Valley Housing Association

Cornwall Council

Denbighshire County Council

Derbyshire County Council

Dorset County Council

East Renfrewshire Council

East Riding of Yorkshire Council

East Sussex County Council

Greater Manchester Combined Authority

Hafod Housing Association

Hillcrest Housing Association

Hull City Council

Incommunities Group Limited

Joseph Rowntree Housing Trust

Karbon Homes


Newcastle City Council

North Lincolnshire Council


Orkney Islands Council

Rochdale Borough Council

Scottish Borders Housing Association

South Lakes Housing

Stroud District Council

Suffolk County Council

Two Rivers Housing

Waterloo Housing Group

Wealden District Council

Contact for media information only

Press officer - Infrastructure Projects
Jeanette Unsworth
+44 (0)7785 290230

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Notes for editors

Notes to Editors:

National Grid is one of the largest investor-owned energy companies in the world and was named Responsible Business of the Year 2014 by Business in the Community. This accolade acknowledges all of our efforts in getting involve with the things that really matter to us and to society. We own and manage the grids that connect people to the energy they need, from whatever the source.  In Britain and the north-eastern states of the US we run systems that deliver gas and electricity to millions of people, businesses and communities.

In Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country.  In the North Eastern US, we connect more than seven million gas and electric customers to vital energy sources, essential for our modern lifestyles.

National Grid in the UK:

  • We own the high-voltage electricity transmission network in England and Wales, operating it across Great Britain
  • We own and operate the high pressure gas transmission system in Britain
  • We also own a number of related businesses including LNG importation, land remediation and metering
  • Our portfolio of other businesses is mainly concerned with infrastructure provision and related services where we can exploit our core skills and assets to create value. These businesses operate in areas such as Metering, Grain LNG Import, Interconnectors and Property. National Grid Carbon Ltd is a wholly owned subsidiary of National Grid. It undertakes Carbon Capture Storage related activities on behalf of National Grid.

Find out more about the energy challenge and how National Grid is helping find solutions to some of the challenges we face at

National Grid undertakes no obligation to update any of the information contained in this release, which speaks only as at the date of this release, unless required by law or regulation.

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