The government will offer £1billion in grants to fund the insulation of middle-income homes, saying it could save households £310 a year
- The Eco+ program will provide funding for attic and cavity wall insulation
- Subsidies were previously only available to low-income households
- Now those in lower tax brackets with inefficient homes will be eligible
- Energy companies have also been told not to increase direct debits based on estimates
The UK government has announced it will offer an additional £1billion in grants to insulate homes across the country from the start of 2023, which could save eligible households £310 a year.
The Eco+ program will focus on offering low-cost insulation measures such as loft insulation and cavity wall insulation to homes that have poor energy efficiency ratings and are in slabs lower taxes.
The government said the proposed scheme, which was previously only available to low-income households, would apply from early 2023 to March 2026 and help meet a recent energy consumption reduction target of 15 % by 2030.
The UK government has announced it will spend an extra £1billion to insulate homes across the country from the start of next year, with the aim of helping households save around £310 a year.
“Our new Eco+ scheme will help hundreds of thousands of people across the UK to better insulate their homes to reduce consumption, with the added benefit of saving families hundreds of pounds each year,” said Monday. Chancellor Jeremy Hunt in a statement.
Along with the launch of the scheme, the government has asked energy suppliers not to increase direct debit payments for customers who are trying to reduce their consumption.
Business Secretary Grant Shapps has written to energy suppliers asking them to ensure energy bills reflect what customers use, rather than overstating charges. He expressed concern that bills were rising as people reduced their energy use.
Ofgem has also been asked to consider making the bills more responsive.
According to government forecasters, Britain is currently facing its biggest squeeze in living standards on record, mainly due to soaring energy, food and fuel costs since the invasion of the UK. Ukraine by Russia which drove up natural gas prices across Europe.
Government subsidies for household energy bills are already expected to cost £25bn this financial year and £13bn in 2023/24.
Shapps said further rolling out the insulation scheme would help make Britain less dependent on imported energy.
The existing insulation aids are targeted at people in social housing or on low incomes.
Under the new plan, up to 80% of grants will be available for people who are not eligible for income-based support, but whose homes are not energy efficient and do not fall into the top tax brackets of dwelling.
The government has also launched an £18million public information campaign to encourage the public to draftproof their homes and switch off radiators in empty rooms.
The £1billion funding comes from a £12.6billion energy efficiency budget to cover the years up to 2028, which Hunt expanded in a budget statement on November 17.
UK energy companies proposed a similar scheme in September, and the precise details will be subject to public consultation and parliamentary approval.
Shapps also said the government was launching an £18million public information campaign to encourage the public to draftproof their homes, switch off radiators in empty rooms and run boilers on lower temperatures.
The government says if a typical household reduced their boiler flow temperature from 75⁰C to 60⁰C and refused radiators in empty rooms, they could save £160 a year on their energy bill at current prices.