Government announces energy efficiency upgrades for low-income households

Thousands of households across England are expected to see energy bills reduced by up to £200 a year, as the government announces £67m to install insulation and clean heating.

Up to 4,300 low-income households will receive the energy efficiency upgrades to cut bills, through the first instalment of the £950m Home Upgrade Grant.

The funding will be allocated to local authorities to improve off-gas grid households, which are reliant on alternatives such as bottled gas and oil to heat their homes.

Grants will pay for energy efficiency measures such as wall and roof insulation as well as new low-carbon heating systems, thermostats and room heating controls, expected to be delivered before the end of March 2023.

Business and Energy Minister Lord Callanan said: ‘This funding will make a real difference to thousands of low-income households – saving them up to £200 a year on their energy bills through upgrades like better insulation.

‘This is just the first round of the £950 million funding we have committed over the next 3 years and will ensure we help those most in need. It will keep more money in people’s pockets, at the same time as making homes warmer, more comfortable and greener.’

£950m was allocated to the Home Upgrade Grant (HUG) scheme by the government last year, and will be available until 2025.

Around 1,300 jobs in the green energy sector are expected to be supported as a result of this latest funding.

The £67m of HUG funding will go to 22 local authorities across England.

The funding builds on the Sustainable Warmth Competition in December, which saw £152 million allocated to more than 250 other local authorities to drive improvements in the energy efficiency of homes.

In related news, Cornwall Council has been awarded £7.8m to help make 400 homes more energy efficient and lower carbon emissions.

Photo by Erik Mclean