The funding for 2026/27 comes as reports presented to members of the council’s Climate Change Committee highlighted the significant impact of its retrofit and energy efficiency programmes across both council and privately owned housing.

Climate Change Committee chair, Cllr Kate Willis, said: “Securing £5.4m of external funding for 2026/27 is a hugely positive result for the Highlands and reflects the Council’s strong track record in attracting investment to tackle fuel poverty, improve housing quality and reduce carbon emissions.

“These programmes are making a real difference to residents by helping create warmer, healthier homes, reducing energy costs and supporting our journey towards net zero. At a time when many households continue to face financial pressures, this investment will provide important support to communities across the Highlands.

“While significant progress has been made, we remain committed to securing further funding to improve the energy efficiency of Highland homes, supporting the alleviation of fuel poverty and improving health and wellbeing.”

This latest funding builds on a strong track record of delivery. Since 2023, the council and its delivery contractor have secured more than £28m in external funding, supporting energy efficiency improvements in over 1,500 homes across the Highlands.

Benefiting both council-owned housing (48%) and owner-occupied or privately rented homes (52%), the programme is reducing energy demand, tackling fuel poverty, lowering household energy costs, and cutting carbon emissions.

Members welcomed the council’s ongoing commitment to improving the energy efficiency of its housing stock. The approved HRA Capital Plan 2027-2032 includes £116.151m of investment in existing council housing stock, an increase of approximately £28m compared to the previous five-year programme.

Members also noted that an independent evaluation recognised Highland Council’s approach to domestic energy efficiency and fuel poverty reduction as “highly effective and innovative”, with stakeholders describing its model as an example of best practice in local authority-led retrofit delivery. The evaluation highlighted the tangible benefits being delivered for residents, communities and the environment.

Further recognition has been received through the upcoming CIH Scotland Awards, where the council’s D-C project has been shortlisted as a finalist in the Net Zero in Housing category. The project delivered more than 1,000 energy efficiency improvements to council homes across Highland and has been recognised for its contribution to reducing carbon emissions, improving energy efficiency and mitigating fuel poverty among households.