Hillingdon Council Cabinet Member and Officer Decisions
Housing Revenue Account Works to Stock Programme 2024/25 - Planned Replacement of Domestic Boilers and Associated Works within Housing Properties Release No 4
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Democratic Services
Location: Phase II
Ext: 0692
DDI: 01895 250692
CMD No: 1129
To: COUNCILLOR MARTIN GODDARD
CABINET MEMBER FOR FINANCE
COUNCILLOR JONATHAN BIANCO
CABINET MEMBER FOR PROPERTY, HIGHWAYS
AND TRANSPORT
c.c. All Members of the Corporate Resources &
Infrastructure Select Committee
c.c. Mike Emmett – Place Directorate
c.c. Karrie Whelan – Corporate Director of Pace
Date: 11 June 2024
Non-Key Decision request Form D
CAPITAL RELEASE REPORT (April 2024)
DEPARTMENT: Place
SERVICE AREA/ PROGRAMME: Housing Revenue Account Works to
Stock 2024/25 Programme: Planned Replacement of Domestic
Boilers and Associate Works
RELEASE NO: 4
Dear Cabinet Members,
Attached is a report requesting that a decision be made by you as an individual Cabinet
Member. Democratic Services confirm that this is not a key decision, as such, the Local
Authorities (Executive Arrangements) (Meetings and Access to Information) (England)
Regulations 2012 notice period does not apply.
You should take a decision on or after Wednesday 19 June 2024 in order to meet
Constitutional requirements about publication of decisions that are to be made. You may
wish to discuss the report with the Corporate Director before it is made. Please indicate your
decision on the duplicate memo supplied and return it to me when you have made your
decision. I will then arrange for the formal notice of decision to be published.
Ryan Dell
Democratic Services
Title of Report: Housing Revenue Account Works to Stock 2024/25 Programme: Planned
Replacement of Domestic Boilers and Associate Works. RELEASE NO: 4
Decision made:
Reasons for your decision: (e.g. as stated in report)
Alternatives considered and rejected: (e.g. as stated in report)
Signed ……………………………………………………… Date……………………..
Cabinet Member for Finance / Cabinet Member for Property, Highways and Transport
Capital Release Report – 11 June 2024 Page 1
Part I – Public
CAPITAL RELEASE REPORT (April 2024)
DEPARTMENT: Place
SERVICE AREA/ PROGRAMME: Housing Revenue Account Works to
Stock 202 4/25 Programme: Planned Replacement of Domestic
Boilers and Associate Works
RELEASE NO: 4
Cabinet Members Councillor Martin Goddard
Councillor Jonathan Bianco
Cabinet Portfolios Cabinet Member for Finance
Cabinet Member for Property, Highways and Transport
Officer Contact Mike Emmett – Place Directorate
Papers with report Appendix A – Capital Release Request for Approval
HEADLINES
Summary
This report seeks Cabinet approval to release the budget allocation
for the 2024/25 Planned Replacement of Domestic Boilers and
Associated Works within Housing Properties.
Putting our
Residents First
Delivering on the
Council Strategy
2022-2026
This report supports our ambition for residents/ the Council of:
Live in good quality, affordable homes in connected communities.
This report supports our commitments to residents of:
Thriving, Healthy Households.
Financial Cost The recommended release of £4,670k for the 2024/25 programme
to be funded from the Housing Revenue Account Works to Stock
Capital Programme.
Relevant Select
Committee
Corporate Resources and Infrastructure Select Committee.
Relevant Ward All Wards.
RECOMMENDATION
That the Cabinet Member for Finance and the Cabinet Member for Property, Highways &
Transport agree to the following capital release request of £4,670k from the Gas Boilers
workstream within the Housing Revenue Account Works to Stock Programme 2024/25 for
the planned replacement domestic boilers within Housing Properties.
Capital Release Report – 11 June 2024 Page 2
Part I – Public
Reasons for recommendation
There are 8,636 gas boilers within the London Borough of Hillingdon’s housing stock. 985 boilers
are 15+ years old. The inefficiency of these older boilers contributes significantly to carbon
emissions and causes Council tenants to spend more on their energy bills than necessary.
With the advancements in boiler technology in recent years, many manufacturer s have stopped
producing parts for older boilers that are no longer in production. It is becoming increasing difficult
to obtain major part replacements for boilers more than 15 years old. This can cause significant
delays trying to source parts, if possible, leading to discomfort and frustration to tenants who rely
on their boilers for heating and hot water.
The planned replacement programme 2023/24 saw 2,006 new boilers installed plus two full
system installations of Air Source Heat Pumps.
In 2035, the current Government proposal is to ban the sale / installation of gas fired domestic
boilers and move domestic heating and hot water systems to “air to air” or “ground sourced” heat
pump installations. These installations require significant improvement s to building fabric
insulation levels and the installation of PV Panels (in most cases) to offset the increase in
electricity usage associated with heating and hot water provision to a domestic property.
Therefore, the planned boiler programme will allow Council time to improve fabric insulation levels
in our housing stock. It is also expected that “heat pump” technology will further improve over the
coming years and the current high costs of installations will reduce with technological
improvements.
Therefore, it is crucial that budgets support the enhanced boiler strategy to mitigate the impacts
of the significant costs linked to the installation of air-sourced heat pumps in 2036.
All new boilers are high efficiency “A” rated units.
Boiler Installations will be carried out by TSG Ltd, the approved term contractor appointed by
Cabinet in 2023.
Alternative options considered/ risk management.
Wherever practical, economical, and safe to do so, boilers are repaired. Boilers that are beyond
repair because parts cannot be obtained or are beyond sensible economic repair, are replaced.
Boilers that are Immediately Dangerous ('ID') and cannot be repaired are disconnected. This
leaves the resident without hot water or heating; therefore, these boilers require replacement.
Select Committee comments
None at this stage.
SUPPORTING INFORMATION
Boiler manufactures on average provide a 7-year warranty. In respect of Boiler Efficiency, all new
boilers must be “A” Rated and meet all requirements of the Part L of the Building regulations. The
“Boiler Plus legislation” was introduced to increase the efficiency of homes across the UK by
Capital Release Report – 11 June 2024 Page 3
Part I – Public
stating that all gas boilers must meet certain requirements. One of those requirements was with
the efficiency level of all boilers installed needing to be at least 92% efficient.
Officers estimate the energy savings at the current energy rates to be a minimum of £190 per
property per annum and an estimated carbon saving of 30% per property, though this is
dependent on usage, and the dwelling current Standard Assessment Procedure ( SAP) rating.
This will have a positive impact on the property SAP (Standard Assessment Procedure) rating
(energy / environmental performance of dwellings).
It is expected that there will be a requirement to replace 1 ,917 boiler installations within the
2024/25 year.
The budget estimates in Table 1 have been calculated using the schedule rates for replacing the
domestic boilers within the Council’s Planned B oiler Installations term contract with TSG Ltd,
appointed by Cabinet in 2023.
Table 1: Planned Boiler Replacement Programme Cost Plan
Item Total Cost (£)
Planned Boiler Replacements in 1,917 properties 4,447,440
Project Management Fees 5% 222,372
Total Estimated Cost 4,669,812
Financial Implications
Budget £4,670k Previously Released/ Pending Release £NIL, Capital Release Requested
£4,670k
This report is seeking the release of £4,670k for the planned replacement of obsolete boilers with
new high efficiency boilers, to spend against an approved Cabinet contract. The release request
is based upon the schedule rates within the Council’s planned boiler installations term contract
and includes a project management fee of 5% of the estimated replacement costs.
The 2024/25 HRA Capital Programme, approved by Cabinet and Council in February 2024,
includes a capital budget for the Works to Stock programme of £26,767k. Within this, the Gas
Boiler workstream budget is £4,510k, with the contingency allocation contributing a further £80k.
The works are programmed to commence upon release of the funds and the availability of the
approved term contractor’s resources. The additional budget required above the initial allocation
can be covered from this year’s contingency budget within the HRA WTS Programme.
TSG Ltd, the approved term contractor who will undertake the work, was approved by Cabinet in
2023.
The current MTFF Works to Stock programme budget for Domestic boiler replacements 2024-28
is £17,344k.
Capital Release Report – 11 June 2024 Page 4
Part I – Public
RESIDENT BENEFIT & CONSULTATION
The benefit or impact upon Hillingdon residents, service users and communities
The replacement of inefficient and obsolete boilers will reduce energy usage for our tenants and
improve reliability of heating and hot water systems in their homes. The replacement of domestic
gas boilers would contribute to the C ouncil’s overall carbon reduction targets. It would also
improve air quality within Hillingdon by reducing the number of air pollutants released from older
boilers.
Consultation carried out or required
None undertaken. The provision of effective heating and hot water services is a landlord's
statutory responsibility.
CORPORATE CONSIDERATIONS
Corporate Finance
Corporate Finance has reviewed the report and concurs with the financial implications set out
above, noting that the recommended action to agree a release of £4,670k for the Planned
Replacement of Domestic Boilers within Housing Properties will be funded from the approved
2024/25 HRA Works to Stock Planned Domestic Boiler Replacement capital budget. The release
request has been calculated using schedule rates within the approved Council’s planned boiler
installations term contract and includes a project management fee of 5% of the estimated
replacement costs.
Legal
Legal Services confirm that the Council, as a landlord, is responsible for this function pursuant to
section 11 of the Landlord and Tenant Act 1985 and the standard terms and conditions of its
tenancy agreements. Moreover, new consumer standards for housing, effective from 1
st April
2024, have been introduced by the Regulator of Social Housing under section 193 of the Housing
and Regeneration Act 2008. The standards include the Safety and Quality Standard. This
Standard, amongst other things, requires the Council to provide safe and good quality homes for
their tenants and an effective, efficient and timely maintenance and planned improvements for
their housing. The Council must meet these standards otherwise it may be subject to enforcement
action by the Regulator of Social Housing pursuant to section 198A of the Housing and
Regeneration Act 2008.
This report states that the boiler installations will be carried out by TSG Ltd, the Council’s
approved term contractor. The use of a term contractor is permissible under the Council’s
Procurement & Contract Standing Orders. Thus, there are no legal impediments to the Council
following the capital release recommendations set out in this report.
As noted in this report, Part L of the Building Regulations 2010 is relevant to the planned boiler
installations. This Part requires reasonable provision to be made for the conservation of fuel and
power in buildings, which the new energy-efficient boilers will do. Approved Document L provides
further guidance on how to meet Part L of the 2010 Regulations.
Capital Release Report – 11 June 2024 Page 5
Part I – Public
Infrastructure/ Asset Management
Asset Management officers authored the report.
Capital Release Protocol
The release of all capital funds, and certain revenue funds, held by the Council is to be made by
a formal democratic decision. No expenditure can be placed or committed by officers until this
formal approval is given by Democratic Services. Release of funds must be for identified projects
only and strictly not for the general release of funds for projects to be identified at a later date. No
block releases of capital or funding will be allowed, except if authorised by the Leader of the
Council in advance t o Corporate Finance. The release of funds will only be made if previous
Council, Cabinet or Cabinet Member agreement has been given to the project and only if there is
an approved budget.
BACKGROUND PAPERS
NIL.
Capital Release Report – 11 June 2024 Page 6
Part I – Public
APPENDIX A – CAPITAL RELEASE REQUEST FOR APPROVAL
Housing Revenue Account Works to Stock Programme 202 4/25: P lanned
Replacement of Domestic Boilers within Housing Properties. Release No 4
Location
Project /
Expenditure
Title
Information
Funds
Release
Sought
£000’s
Approve Hold
More
Information
Required
Various
Housing
Properties
Planned
Replacement of
Domestic
Boilers
Domestic Boiler
Replacement
Planned
Programme for
2024/25 –
4,670
Total seeking release 4,670
Previously released 0
Budget 4,670
Remaining budget 0
View Decision / Minutes Text
Executive Decision Notice – 27 June 2024
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
OFFICIAL EXECUTIVE DECISION NOTICE
PUBLISHED BY DEMOCRATIC SERVICES
Notice is hereby given that the following decision(s) have been made today by
Cabinet Members at the London Borough of Hillingdon:
Title of decision CAPITAL RELEASE REPORT (April 2024)
DEPARTMENT: Place
SERVICE AREA/ PROGRAMME: Housing Revenue Account
Works to Stock 2024/25 Programme: Planned Replacement
of Domestic Boilers and Associate Works
RELEASE NO: 4
Reference No. 1129
Date of decision Thursday 27 June 2024
Call-in expiry date Thursday 4 July 2024
Relevant Select
Committee
Corporate Resources and Infrastructure Select Committee
Relevant Wards All Wards
Decision made
Cabinet Members
making the decision
Councillor Jonathan Bianco – Cabinet Member for Property,
Highways and Transport
Councillor Martin Goddard – Cabinet Member for Finance
Decision Approved
That the Cabinet Member for Finance and the Cabinet
Member for Property, Highways & Transport agree to the
following capital release request of £4,670k from the Gas
Boilers workstream within the Housing Revenue Account
Works to Stock Programme 2024 /25 for the planned
replacement domestic boilers within Housing Properties.
Reason for decision The replacement of inefficient and obsolete boilers will reduce
energy usage for our tenants and improve reliability of heating
and hot water systems in their homes. The replacement of
domestic gas boilers would contribute to the C ouncil’s overall
carbon reduction targets. It would also improve air quality within
Hillingdon by reducing the number of air pollutants released from
older boilers.
Alternative options
considered and
rejected
None at this stage.
Classification Part I – Public
Link to associated
report
Here
Executive Decision Notice – 27 June 2024
This notice is a public document also available to view on the Council's website www.hillingdon.gov.uk
Relevant Officer
contact & Directorate
Mike Emmett – Place Directorate
Any interest declared
by the Cabinet
Member(s) /
dispensation granted
N/A
Implementation of decision & scrutiny call-in
[Internal Use only]
When can this
decision be
implemented by
officers?
Officers can implement Cabinet Member decision in this notice only
from the expiry of the scrutiny call-in period which is:
5pm on Thursday 4 July 2024
However, this is subject to the decision not being called in by
Councillors on the relevant Select Committee. Upon receipt of a
valid call-in request, Democratic Services will immediately advise
the relevant officer(s) and the decision must then be put on hold.
Councillor scrutiny
call-in of this
decision
Councillors on the relevant Select Committee shown in this notice
may request to call-in this decision. The request must be before the
expiry of the scrutiny call-in period above.
Councillors should use the Scrutiny Call-in App (link below) on their
devices to initiate any call-in request. Further advice can be sought
from Democratic Services if required:
Scrutiny Call-In - Power Apps (secure)
Further information These decisions, where applicable, have been taken under The
Local Authorities (Executive Arrangements) (Meetings and Access
to Information) (England) Regulations 2012.
This is the formal notice by the Council of the above executive
decision, including links to the reports where applicable.
If you would like more information on this decision, please contact
Democratic Services on 01895 250636 or email:
democratic@hillingdon.gov.uk.
Circulation of this decision notice is to a variety of people including
Members of the Council, Corporate Directors, Officers, Group
Secretariats and the Public. Copies are also placed on the
Council’s website.
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