Portsmouth secures extra funding after strong home-upgrade performance

The project, funded by the Department for Energy Security and Net Zero, has supported thousands of homes across a consortium of 31 local authorities led by Portsmouth. It offers free energy-efficiency upgrades such as insulation, solar panels and low-carbon heating.

A new report to the Cabinet Member for Climate Change and Greening the City outlines the final results of the Home Upgrade Grant Phase 2 (HUG 2), which closed earlier this year. It also sets out plans for the next phase, the Warm Homes: Local Grant (WH:LG), running until at least 2028.

HUG 2 faced what officers describe as “significant issues” during delivery, including restrictive eligibility rules, low cost caps and delays caused by a new government funding process. These affected councils nationwide. Portsmouth and other authorities pushed for changes, which led to policy improvements in 2024/25.

Despite the early challenges, the consortium exceeded its revised target. A total of 1,162 homes were upgraded, 16 per cent above the requirement, with £23.8m spent.

Portsmouth saw 29 homes improved with 49 measures installed, including heat pumps, solar panels and insulation. Estimated annual bill savings for those households amount to £24,600.

Across the whole region, upgrades are expected to save residents £1.1m per year on energy bills and cut emissions by around 2,000 tonnes of CO2 annually.

The next stage of the programme is already under way. Portsmouth secured £26m for WH:LG earlier this year and has since been awarded an extra £1.5m after being named one of the “strongest performing” councils in the country.

By October, 103 homes across the consortium had been upgraded under the new scheme, including 36 in Portsmouth.

Demand is high, with applications now being added to a waiting list for the next financial year.

Figures can be found on the council website, the cabinet member for climate change, Cllr Kimberley Barrett, will note the report on November 27.