Local Authority Delivery (LAD) Scheme - Phase 2

Phase 2 comprises a further £300m to support English Local Authorities that will be allocated through Local Energy Hubs (Hubs) for regional delivery in 2021.

The Local Authority Delivery (LAD) Scheme was announced in July 2020 by the Chancellor with the aims of saving householders money, cutting carbon and creating green jobs.

Phase 2 comprises a further £300m to support English Local Authorities that will be allocated through Local Energy Hubs (Hubs) for regional delivery in 2021.

The LAD 2 scheme operates in a different way to previous Government energy efficiency schemes by utilising Regional Energy Hubs. The scheme aims to harness both Local and Regional expertise to identify households which are most likely to be in fuel poverty and which would best benefit from energy efficiency upgrades. BEIS will use learnings from the Hubs to inform the design of future Government-funded fuel poverty schemes and the on-going role of Local Authorities and Regional Energy Hubs in moving this agenda forward.

The Midlands Energy Hub (MEH) is allocating funding to Local Authorities to deliver Phase 2 to improve the energy efficiency of homes of low-income households living in their area. The LAD scheme aims to raise the energy efficiency of low-income and low EPC rated homes, delivering progress towards: reducing fuel poverty, the phasing out of high carbon fossil fuel heating and the UK's commitment to net zero by 2050.

MEH will be receiving a total of £59.95m of LAD funding as part of Phase 2 of the Local Authority Delivery (LAD) element of the Green Homes Grant scheme, which will run from March 2021 to December 2021.

Local Authorities

To receive funding a Local Authority must sign and return their award letter which will release a mobilisation payment to support proposal development. The deadline for signing the letter is the 15th April. Once a Local Authority is satisfied that they meet the parameters, eligibility criteria, reporting and governance commitments, and they have signed the Award Letter, the LA can complete the required Proposal Form.

Proposals should be submitted electronically to the LAD inbox (MEH.LAD2@nottinghamcity.gov.uk). Proposals will be reviewed on three occasions, providing LA’s several opportunities to submit for review: 2nd April, 30th April and 24th May.

MEH will use the following assessment criteria to assess the proposals meet the project objectives:

• Strategic Fit: how well the proposal fits with the aims, desired outcomes and eligibility criteria of the LAD scheme.

• Delivery Assurance: an assessment of the feasibility and credibility of the project including detail on its timescales, procurement, quality assurance, auditing, monitoring, and evaluating requirements.

• Value for Money: The cost of the project in relation to its relative impact and proposed benefits to the housing stock it plans to improve.

For more details please refer to the guidance.


To help enable regional delivery, MEH are setting up two Dynamic Purchasing Systems (DPS) for Local Authorities to use to procure installers and professional services. The DPS will be live the w/c 12th April. Suppliers can sign up by completing the application on the portal and find further information by clicking the links below:

Installers: https://procontract.due-north.com/Advert?advertId=311cc179-6682-eb11-810b-005056b64545

Professional Services: https://procontract.due-north.com/Advert?advertId=b67d12ce-9882-eb11-810b-005056b64545

Get in touch

If you have any questions regarding the LAD scheme, please email

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