Award

Home Upgrades Grant (HUG)

UK SHARED BUSINESS SERVICES LIMITED

This public procurement record has 1 release in its history.

Award

25 Oct 2021 at 15:36

Award Notice
Summary of the contracting process

The Home Upgrades Grant (HUG) procurement process, managed by UK Shared Business Services Limited, focuses on providing energy efficiency upgrades and low-carbon heating to low-income households in off-gas homes across England. This contract has been awarded through a selective procurement method, specifically a call-off from the Energy and Climate Change Behavioural Science Framework Agreement. The award, which totals £49,955.25, was confirmed on 23rd September 2021, with a contract period spanning from 13th September 2021 to 12th November 2021. The procurement falls under the services category, with a significant emphasis on research services to facilitate this initiative aimed at addressing fuel poverty and contributing to net zero targets. The tender period closed on 13th August 2021, with further funding mechanisms potentially impacting the scope of this initiative after March 2023.

This tender presents lucrative opportunities for businesses involved in energy efficiency upgrades and low-carbon heating solutions, particularly those that can provide services such as insulation, draught-proofing, and heat pump installations. Companies skilled in navigating local authority partnerships will be particularly well-suited to engage with this grant funding, enhancing their prospects of contributing to the upgrade of approximately 250,000 homes targeted by the HUG scheme. Given the challenging uptake rate historically, businesses with innovative outreach strategies to low-income households and expertise in overcoming barriers to scheme uptake will likely find significant advantages in this competitive environment.

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Notice Information

Notice Title

Home Upgrades Grant (HUG)

Notice Description

**Please note this is an Award Notice not a call for competition** This contract has been awarded via Energy and Climate Change Behavioural Science Framework Agreement. Reference: CR20116. Background The Home Upgrade Grant (HUG) is a PS2.5 billion manifesto commitment that aims to provide energy efficiency upgrades and low-carbon heating to low-income households living in the least energy-efficient off-gas homes1 in England, to tackle fuel poverty and meet net zero. An initial PS150 million was allocated to HUG in Spending Review 2020. This funding is being delivered via local authorities, commencing in early 2022 and delivering to March 2023, and is being allocated to local authorities as part of the Sustainable Warmth competition alongside Phase 3 of the Local Authority Delivery scheme. Future multi-year funding for HUG is subject to future fiscal events. For the PS150 million HUG scheme, the grants available will be between PS10,000 and PS25,000 depending on homes' starting EPC bands and starting heating fuel types. Eligible owner-occupier households will receive a 100% grant for the cost of eligible upgrades. Landlords of eligible tenants, however, will need to make a financial contribution to the cost of upgrades of at least one third, with the remaining costs provided by HUG. Upgrades made through HUG will typically include 'fabric first' measures (insulation and draught-proofing) in combination with heat pump installations to make homes thermally efficient and suitable for our net zero future. Using fuel poverty statistics, BEIS statisticians estimate there are around 800,000 homes that meet the HUG criteria of: low-income, EPC D-G, owner-occupied or privately rented, in England, and off-gas grid. Around half of these homes are heated with electric heating, and the other half with fossil fuel heating (such as oil, coal, or liquid petroleum gas). Those homes heated with fossil fuels will be the target of forthcoming off-gas grid regulations to mandate the replacement of fossil fuel boilers with low-carbon alternatives from 2026. The HUG scheme will therefore serve as an enabler for those heat regulations, priming the supply chain and ensuring a higher number of low-income households receive the support they need to transition to clean heat to meet the new requirements, which they would otherwise not be able to afford. For the HUG scheme to achieve its target of upgrading 250,000 homes, it would need approximately 30% of households in the eligible pool to sign up to the scheme; this will be challenging (for context, the Energy Company Obligation has a roughly 10% conversion rate of approached households). We are therefore interested in key barriers to scheme uptake (particularly low-carbon heating uptake), and how our policy might be refined to overcome these barriers.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-12018066-fce7-43a4-90b1-dcdd5ea03cfa
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/6dbc4b2d-e8e9-4184-a5a8-0d825b90299d
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Framework
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Call-off from a framework agreement
Tender Suitability
SME
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

73 - Research and development services and related consultancy services

CPV Codes

73110000 - Research services

Notice Value(s)

Tender Value
£49,955 Under £100K
Lots Value
Not specified
Awards Value
£49,955 Under £100K
Contracts Value
Not specified

Notice Dates

Publication Date
25 Oct 20214 years ago
Submission Deadline
13 Aug 2021Expired
Future Notice Date
Not specified
Award Date
22 Sep 20214 years ago
Contract Period
12 Sep 2021 - 12 Nov 2021 1-6 months
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
UK SHARED BUSINESS SERVICES LIMITED
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
SWINDON
Postcode
SN2 1FL
Post Town
Swindon
Country
England
Major Region (ITL 1)
TLK South West (England)
Basic Region (ITL 2)
TLK7 Gloucestershire and Wiltshire
Small Region (ITL 3)
TLK71 Swindon
Delivery Location
Not specified
Local Authority
Swindon
Electoral Ward
Rodbourne Cheney
Westminster Constituency
Swindon North

Supplier Information

Number of Suppliers
1
Supplier Name

BEHAVIOURAL INSIGHTS

Further Information

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts. 

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