Economy

Government Eco+ program offers grants to home insulation

The government will offer £1bn in grants to finance middle-income home insulation, claiming it could save households £310 a year.

  • The Eco+ scheme will offer financing for loft insulation and cavity wall insulation
  • Previously, the grants were only offered to low-income households.
  • Those in the lower council tax brackets and with inefficient homes will now be eligible
  • Energy companies have also been urged not to increase direct debits based on estimates.

The UK government has announced it will offer an additional £1bn in grants to insulate homes across the country from early 2023, which it claims could save eligible households £310 per year on their heating bills. Energy.

The Eco+ scheme will focus on offering low-cost insulation measures such as loft insulation and cavity wall insulation for homes that have low energy efficiency ratings and are in the lower council tax bands.

It is an extension of the previously announced Eco4 scheme, which offers help with insulation costs to low-income households, those in social housing, low-income or who are classified as fuel poor.

The government said 80 per cent of the new Eco+ funding would go to those who had not previously been eligible for government support.

The UK government has announced it will spend an additional £1bn on insulating homes across the country from early next year, funding improvements such as hollow wall insulation.

Homes will need to have an Energy Performance Certificate (EPC) rating of D or lower to apply for this tranche of financing, and will need to be in ‘lower’ council tax bands, although the government has not specified which ones.

Around a fifth of the fund will also go to those who are the most vulnerable, including those with means-tested benefits or in energy poverty.

The new scheme, which is subject to consultation, will run from early 2023 to March 2026 and would help meet a recent target of reducing energy consumption by 15 percent by 2030.

“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 every year,” Chancellor Jeremy Hunt said in a release.

Along with the launch of the scheme, the government has asked energy providers not to increase direct debit payments for customers who are working hard to reduce their usage.

Business Secretary Grant Shapps has written to energy providers asking them to ensure energy bills reflect what customers are using, rather than overstate charges. He said he was concerned that bills would rise even as people cut back on their energy use.

Ofgem has also been asked to look at how to make the bills more responsive.

Britain is currently facing its biggest decline in living standards in history, according to government forecasters, driven largely by a rise in energy, food and fuel costs since the Russian invasion of Ukraine sent prices up. of natural gas throughout Europe.

Government subsidies for household energy bills are already forecast to cost £25bn this fiscal year and £13bn in 2023/24.

Shapps said further rollout of the insulation program would help make Britain less dependent on imported power.

Existing insulation allowances are targeted at people in social housing or who have low income.

Under the new plan, up to 80 percent of the subsidies will be available to people who do not qualify for income-based assistance, but whose homes are not energy efficient and fall outside the upper bands of the municipal tax.

The Government Has Also Launched A £18 Million Public Information Campaign To Encourage The Public To Draft-Proof Their Homes And Turn Off Radiators In Empty Rooms.

The Government has also launched a £18 million public information campaign to encourage the public to draft-proof their homes and turn off radiators in empty rooms.

The £1bn of funding comes from a £12.6bn energy efficiency budget to cover the years to 2028, which Hunt expanded on in a tax return on November 17.

British energy companies suggested 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 a £18m public information campaign to encourage the public to draft-proof their homes, turn off radiators in empty rooms and run boilers at lower temperatures.

The government claims that if a typical household reduced the boiler flow temperature from 75⁰C to 60⁰C and switched off the radiators in empty rooms, it could save £160 a year on its energy bill at current prices.

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Jacky

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