Chancellor Rishi Sunak has outlined the Government’s plans to help families in England pay for green upgrades to their homes, in a bid to make them more energy efficient and environmentally friendly.
The Green Homes Grant will see £2bn being used to support households in England to pay for improvements such as loft and wall insulation and new double-glazing. It will also be part of a wider £3bn green package that aims to both rebuild the country’s economy in its recovery from the pandemic, and help meet sustainability targets.
Eligible homeowners can receive vouchers up to the value of £5,000, and those on the lowest incomes can claim grants of up to £10,000. In addition, a number of reports (opens in new tab) have revealed that the programme could see savings of up to £600 a year on typical household energy bills.
This, in conjunction with the huge savings possible by running an energy comparison (opens in new tab) and switching to a cheaper energy deal (opens in new tab), could see England’s households making significant reductions on their utility costs in the long term.
How does the Green Homes Grant scheme work?
The scheme is pencilled in to start in September, when online applications for energy improvement work will be available, alongside a list of recommended and accredited suppliers for different regions. The vouchers themselves will be issued subject to the work being approved.
According to MoneySavingExpert (opens in new tab), the vouchers will see the Government “pay for at least two-thirds of the cost of the work“. The Treasury says that in practice this would see a homeowner only paying £1,320 of a £4,000 insulation installation, with the remaining £2,680 covered by the vouchers.
However, those on “the lowest incomes could see the Government cover the full costs worth up to £10,000“ of their efficiency improvements.
Additional benefits for the country
The Chancellor also stated that the Green Homes Grant will be a “vital” part of Britain’s recovery from the pandemic. He added that the Government intends to “support and protect livelihoods across the nation”.
The Business Secretary, Alok Sharma, also championed the potential benefits (opens in new tab) for both UK households and the green energy industry. Alongside the ”hundreds of pounds” people could save on their energy bills, Mr Sharma believes the scheme will also help boost employment in the sector, and will be “very good for the environment”.
An opportunity to go green and save
In the meantime - and before the scheme is officially rolled out - homeowners may want to look into which energy saving upgrades they could make to their properties. This could help ensure you’re ready to capitalise on the Government’s support and start making savings on your energy bills as quickly as possible.
It's also a good idea to use an energy price comparison service, both to find a potentially greener deal, and to make sure you're not overpaying on your energy bills. (And if you haven't switched energy supplier (opens in new tab) or tariff for 12-18 months, you probably are.) This could see immediate savings being made, particularly while prices are still low.
Find the best energy deal for your home (opens in new tab)
We've partnered with MoneySupermarket to help you find the best tariffs in your area. Our energy comparison tool takes less than five minutes to use, and could save you hundreds on your energy bills. Just tell us your post code, and how much gas and electricity you use, and we'll show you the best tariffs in your area - plus our latest exclusive offers. Save money on your energy bills now (opens in new tab)