The Homes and Communities Agency (HCA) has announced that 46 areas of the country will share a fund of up to £84m to help insulate social homes, reducing fuel bills for tenants and cutting carbon emissions.

The Social Housing Energy Saving Programme (SHESP), first announced in April's 2009 Budget, will provide cavity wall insulation for thousands of homes. The initiative forms part of the government's Housing Stimulus Package.

The funding, payable over two years, is expected to insulate up to 110,000 difficult-to-fill homes. It is anticipated that works will start this summer.

The majority of the SHESP funding will be allocated to London-based social housing providers, due to the capital’s housing stock having a higher proportion of flats than the rest of the country.

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In total, 50 bids were received from a range of social landlords - including local authorities (14 bids), Registered Social Landlords (16 bids) and Arms Length Management Organisations (20 bids). Of these, 46 were successful.

Commenting on SHESP, Sir Bob Kerslake, Chief Executive of the HCA, said: "We are very pleased with the response; the quality of the bids was extremely high. Despite the quick turnaround time required for submission of the bids, we had a very strong response from social landlords. Housing is responsible for more than a quarter of carbon emissions, and this funding has come at a time when the need to tackle climate change has never been greater.

"The funding will therefore not only be a welcome boost to improving insulation in existing social housing stock, but will also provide an employment boost to the cavity wall insulation industry. The programme also contributes to the HCA's commitment to reducing energy emissions in homes. At the same time, tenants will be able to significantly reduce their energy bills."

(CD/JM)