You are here: Home - Household Bills - News -

Green Homes Grant scheme funding slashed

0
Written by: Emma Lunn
11/02/2021
Funding for the home improvement voucher scheme is set to be slashed by about £1.5bn from March.

The Green Homes Grant scheme was announced in the Summer Budget in July as part of a £3bn investment package to support about 140,000 green jobs and upgrade buildings and reduce emissions.

Homeowners in England, including landlords, can get up to £5,000 to pay part of the cost of energy saving measures such as the ‘primary measure’ of insulation, including solid and cavity walls, lofts and park homes.

The government committed £2bn for the initiative, with £1.5bn of this earmarked for households, and the other £500m going to local authority led schemes.

When it first launched in September 2020, there was a tight six-month deadline to get any work done, but it was extended until 31 March 2022 after people complained about being unable to find a registered trader or installer and were worried they’d miss the deadline.

But it’s now been revealed in a written answer by minister of state for business, energy and industrial strategy (BEIS) Anne-Marie Trevelyan that the original £2bn in funding is only to be used in the 2020/21 financial year and any leftover cash won’t be rolled over.

As of 26 January, just 17,618 vouchers had been issued to households, accounting for just £73.1m of the cash set aside to fund the scheme.

Only £320m of funding has been set aside for the scheme in 2021/22.

Trevelyan was answering a question from Labour MP Catherine West.

The answer said: “The original funding for the Green Homes Grant voucher scheme was announced as a short-term stimulus, for use in the 2020/21 financial year only.

“In the 2020 Spending Review, my Rt. Hon. Friend Mr chancellor of the exchequer announced £320m of funding for the green homes grant voucher scheme for 2021/22, as part of funding allocated to make homes and buildings more energy efficient and less carbon intensive.”

The Department for Business (BEIS), which runs the Green Homes Grant scheme, confirmed that just £320m has been set aside for 2021/22.

MoneySavingExpert.com founder Martin Lewis tweeted that while the scheme was a “great concept”, it had been “hideously designed” and was “overly complex and tough to access”.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape for summer, and moving your cash savings to a higher paying deal is ...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
One in four have ‘low financial resilience’

The Financial Conduct Authority’s (FCA) Financial Lives survey found 14.2 million people have low financial resilience – up from 10.7...

Close