You are here: Home - Household Bills - News -

Low-income households to save up to £700 a year

Written by:
More than 100,000 low-income households could see their energy bills slashed by up to £700 a year through the government’s Help to Heat funding.

The 130,000 social housing and low-income properties in England could be upgraded with external wall and loft insulation, energy efficient doors and window, heat pumps and solar panels.

The Department for Business, Energy and Industrial Strategy (BEIS) said households will be able to have multiple measures installed in a single home “to considerably improve the energy performance”.

Overall, the upgrades could help households save around £400 to £700 a year on energy bills.

As part of the £1.5bn Help to Heat funding, social housing providers and local authorities will need to submit bids for a share of the cash, with upgrades scheduled to take place from early next year until March 2025.

To be eligible social housing must currently have an energy performance certificate (EPC) of D or lower while funding will also be made available to people who are most vulnerable to fuel poverty living in privately-owned (rented and owner-occupied) off gas-grid homes and on low incomes. You can visit the government website to check eligbility for Help to Heat here.

Up to £1.5 billion is being made available through the Social Housing Decarbonisation Fund and Home Upgrade Grant schemes, allowing social housing providers and local authorities to submit bids for funding to upgrade the properties of around 130,000 households.

The news comes after the government energy price guarantee which will freeze unit rate and standing charges for the next two years, meaning the average household will pay £2,500 a year on bills.

Businesses will also be helped with soaring energy prices as the government announced the energy bill relief scheme costing the taxpayer £25bn as it slashes their bills by half to stop firms going bust this winter.

‘Homes warmer and cheaper to live in’

Business and energy secretary, Jacob Rees-Mogg, said: “Putin’s illegal war in Ukraine would have had dire consequences on the energy bills of both households and businesses this winter, without the government’s decisive action. Today, I am cutting costs even further for the most vulnerable households for years to come.

“By making homes warmer and cheaper to live in, we are not only transforming the lives of households across England, we are creating huge growth in the economy, backing the green energy sector and supporting thousands of high-skilled jobs.”

Figures from the government reveal in 2010, just 14% of properties had an EPC of C or above, however it is now at 46% and rising. The social housing sector is up from 18% in 2008 to around 66%.

The government added that “energy efficiency improvements are one of the most effective ways to save money on energy bills at a time of rising global gas prices”.

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.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week