Transition to GD3
The transition to GD3 has been informed by five years of delivery and stakeholder insight.
Key learning includes the need to remain flexible in response to changing demand, recognise the sustained impact of the cost-of-living crisis, and embed vulnerability support within core business operations. The importance of long-term partnerships, collaboration across sectors, and the use of both data and lived experience to inform delivery, has been central to shaping the GD3 approach.
GD3 governance changes
GD2 Vulnerability and Carbon Monoxide Allowance
- Focused on individual VCMA projects
- Governance mainly at project level
- collaboration encouraged, but informal
- Different approaches across GDNs
- Oversight through annual VCMA report
- Funding model: use-it-or-lose-it
GD3 Vulnerability and Carbon Monoxide Initiatives (VCMI)
- Whole-system vulnerability governance
- Covers VCMA and BAU vulnerability activity
- National oversight (NSP & Delivery Group)
- Joint GDN strategy and shared priorities
- Stronger collaboration and cross-utility working
- Focus on outcomes, transparency and learning
Published 1 April 2026
Look ahead Priorities from April 2026 to March 2027
NGN has committed to delivering an ambitious GD3 programme supported by a £19.1 million VCMA allocation alongside additional funding for business-as-usual activity and shareholder support. Delivery will focus on providing in-depth support for high-risk households, expanding cross-utility collaboration, increasing PSR registrations, and improving inclusivity across all projects. Early GD3 activity includes the progression of 58 projects, ensuring continuity of support and enabling a smooth transition from GD2. Priority areas identified for further development include support for digitally excluded groups, rural communities, and emerging vulnerabilities linked to economic pressures.
At the start of GD3, contracts were progressing for 58 projects, including 40 NGN company-specific initiatives, 16 collaborative projects with other gas distribution networks, and a further 2 cross-utility collaborations. A key focus during this transition period has been prioritising GD2 projects to ensure continuity of support for customers and delivery partners, avoiding disruption to established services. To support this approach, a higher level of spend has been forecast in Year 1 of GD3, enabling a responsible transition and the gradual tapering of funding for higher-risk services, such as Centres for Warmth. Drawing on learning from GD2, NGN has already begun implementing a stronger delivery model for GD3, including improved linkage between related projects, greater consistency and efficiency of delivery across the network, and an increased emphasis on cross-utility collaboration to maximise impact and reach.
