DESNZ will push Treasury for top-up to Warm Homes: Social Housing Fund, senior civil servant says

Speaking at Homes UK 2024, Selvin Brown, director for net zero building domestic at DESNZ, said the department will go back to the Treasury for a top-up for years two and three.

“I was on my SLT [senior leadership team meeting] with my colleagues and we were discussing our approach to the Spending Review, which will be published in the spring, and we’ll be going back to the Treasury for a top-up on the £1.3bn for SHF for years two and three, where I expect them to meet your expectations in relation to expressions and push out for a year four or five,” he said.

“I’ll put my neck on the line here. I’m expecting from the Treasury at least the same again. And we’ll work together on making a dual allocation, signing of MOUs [memorandum of understanding] from April and then at some point through the year we’ll redo the MOUs, either separately or as an addition, to give you five years of certainty.

“We started SHF as a £30m demonstrator. For it to grow to a £3bn Wave 3 is extraordinary. It’s 100-fold, and it’s all testament to the work that all of you have done.”

Mr Brown revealed that expressions against the £1.29bn in the WSH:SHF Wave 3 were in excess of £2.17bn so while everyone will receive an allocation, these may not be to the full amount asked for in submissions. 

Devolution and innovation

Mr Brown said prime minister Sir Keir Starmer has made a “very clear position” on devolution, with the aim of of having a combined authority or mayor in every part of the country in the next 10 years.

He said decarbonisation is going to take the next 25 years and that he thinks devolution “can probably get us there easier than asking the Treasury to give us a 20-year deal”.

Mr Brown also said he genuinely believes devolution is a “better solution” than a nationally designed scheme.

“The scheme has got us here, and to demonstrate what can be done, and that the capacity is being built, but in terms of combining skills, supply chains, priorities, adaptation, flood risk, that really, I think, plays out much better locally,” he said.

On innovation, Mr Brown added that the 10 per cent pilot demonstrator in WH:SHF Wave 3 is for the sector to come up with “innovative ways of doing heat transition”.

“I’m looking forward to learning from you, working with you, working out how we can make this heat transition happen, but be as painless as possible,” he said.