A new auction system that will help councils access money from utility companies to make homes more energy efficient, cut fuel poverty and reduce carbon emissions has been established.

The Local Government Association (LGA) has appointed ENACT to implement its Carbon Emission Reduction Target (CERT) Clearing House. One of the main recommendations of the LGA Independent Climate Change Commission, it will be known as the CROSS Funding Partnership.

Councils and registered social landlords (RSL) will group together the number of cavity wall, loft insulation or other energy efficient measures needed in their social housing stock. They will then pass these details to Enact - indicating the percentages that are in a priority group - which will then auction the work that is required to the energy suppliers. The supplier which is prepared to contribute the highest price towards these measures will win the contract to install them.

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Commenting on the announcement, Cllr Paul Bettison, Chairman of the LGA Environment Board, said: "This simple system will give councils a new way to access funding, which will help fight fuel poverty and combat climate change. Establishing a clearing house was one of the Independent Climate Change Commission's key recommendations, and in setting it up the LGA has demonstrated its total commitment to improving the energy efficiency of our housing stock.

"Climate change is the most significant threat to our long-term prosperity and stability. It is only councils that have both the knowledge of a local area and a strong connection with households. The new clearing house will help local authorities ensure that as many cavity wall and loft insulation jobs are carried out as possible over the next three years.

"Making our homes more energy efficient is the best way to combat climate change. We need a comprehensive drive to insulate every home in the country to cut carbon emissions and lift people out of fuel poverty. The CROSS Funding Partnership will play an important role in helping to achieve this."

(CD/JM)