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National Grid has announced the successful bids in the first round of its £150 million Warm Homes Fund.

The fund was set up following the sale of the company’s majority stake in its gas distribution business in order to pay for improvements in fuel poor households, which do not use mains gas as their primary source of heart.

A total of £33 million has been awarded to 35 local authorities and social landlords around the country, following the first round of bidding for grants.

The awards include £5 million to Stroud District Council and £3.5 million to Cornwall Council.

In addition, Greater Manchester Combined Authority will receive £1.8 million and the London borough of Islington will receive £1.5 million.

The fund itself is managed by Affordable Warmth Solutions, which is a community interest company established by National Grid in 2008 to tackle fuel poverty.

A total of  £150 million will be awarded through three funding rounds and bids are now being invited for the second round.

National Grid’s chief executive, John Pettigrew said the aim of the fund was to cut energy bills, make fuel poor homes warmer and improve people’s health.

“Around 4.5 million households across the country are in fuel poverty with people not able to heat their homes enough to stay warm and healthy,” added Pettigrew.

“Many are struggling on low incomes and relying on heating systems that are expensive to run or don’t heat their homes properly.

“In many cases, because of their circumstances or the type of property they live in, they can’t apply for existing grand schemes.”