Section 15(1) of the Social Security Act 199013 (as amended by section 142 of the Housing Grants, Construction and Regeneration Act 199614) provides that the Secretary of State may make, or arrange for the making of, grants towards the cost of work or advice to improve thermal insulation or otherwise to reduce or prevent energy wastage in dwellings.

The Secretary of State’s functions under this provision were made exercisable, in relation to Wales, by the National Assembly for Wales by virtue of article 2 of, and Schedule 1 to, the National Assembly for Wales (Transfer of Functions) Order 199915. They are now exercisable in relation to Wales by the Welsh Ministers by virtue of section 162 of, and paragraph 30 of Schedule 11 to, the Government of Wales Act 200616.

The Home Energy Efficiency Scheme (Wales) Regulations 2007 (“the 2007 Regulations”)17 set out the schemes for providing grants to persons on low incomes who have children, or are elderly, disabled or in poor health. They also provided for eligibility to receive a grant, determination by the Assembly of categories of works, the maximum levels of grants available, the purposes for which grants may be approved and the method of applying for a grant.

These regulations revoke and replace the 2007 Regulations in full.

Regulation 2 sets out the definitions of certain terms used in the regulations.

Regulation 3 contains revocation and transitional provisions. A person who applied for a grant under the 2007 Regulations will have their application dealt with in accordance with these regulations, where (at the time of these regulations coming into force) either (a) the application has not been approved or rejected, or (b) approval has been received but works have not been commenced.

Regulation 4 provides for the Welsh Ministers to appoint an area agency to administer the Home Energy Efficiency Scheme (the “Scheme”), to allocate money to the area agency for the purpose of making grants, and to pay grant monies directly to the person who undertakes the improvement work.

Regulation 5 deals with the eligibility of persons to apply for a grant or for advice under the Scheme. In general, applications may only be considered where the applicant is either the householder, or lawfully occupies the property as his or her only or main residence (“occupant”) and intends to remain there for the long term. But it is not necessary for the applicant to be the freehold owner or to have a formal tenancy arrangement.

An application for advice may be considered from any person who is an occupant of the dwelling to which the application relates.

In respect of an application for works, the dwelling must be in private occupancy (i.e. not council or social housing), the occupant must be in receipt of one of the means-tested benefits listed in Regulation 2, and the dwelling must have an asset rating of 38 or less. “Asset rating” has the meaning given in regulation 2(1) of the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 200718.

A partial grant application (i.e. one for which only roof and wall insulation may be approved) may be considered from vulnerable households, being those where the applicant is aged 60 or over, disabled or chronically ill, pregnant, or occupies the dwelling with a child or young person under the age of 25.

The eligibility criteria may be changed from time to time by the area agency, with the consent of the Welsh Ministers.

Regulation 6 sets out the purposes for which a grant may be approved for giving advice, carrying out works, or both. The area agency may add to or change these purposes, set conditions, and minimum standards of workmanship and so on, in each case with the consent of the Welsh Ministers.

Regulation 7 allows the Welsh Ministers to determine maximum amounts of grant, or for the area agency to do so with the Welsh Ministers' consent.

Regulation 8 sets out the procedures and requirements for making an application.

Regulation 9 requires the area agency to impose such conditions on the giving of any grant as are relevant, including the circumstances in which a grant might become repayable, the means of securing any such repayment (for example by a charge on the property), and the securing of landlord’s consent (where the applicant is not the freehold owner) not to increase the rent as a result of the improvements carried out. Further conditions may be imposed by the area agency with the consent of the Welsh Ministers.