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Government’s £1bn insulation scheme could cut £400 off energy bills

Rebecca Goodman
Written By:
Rebecca Goodman
Posted:
Updated:
21/11/2023

Households could save up to £400 on average from their energy bills with a new insulation scheme from the Government.

It said more than 300,000 families could benefit from the latest £1bn pot of money from the Great British Insulation Scheme, aimed at making homes more energy efficient.

The insulation scheme runs alongside the Energy Company Obligation (ECO) scheme, offering free home energy efficiency improvements to families on low incomes.

Here’s everything we know so far.

What measures are available?

There are a range of measures available to improve the energy efficiency of homes including the following:

  • cavity wall insulation
  • solid wall insulation (internal or external)
  • loft insulation
  • flat or pitched roof insulation
  • underfloor insulation
  • solid floor insulation
  • park home insulation
  • room-in-roof insulation

Who can benefit?

A range of people will be able to apply for insulation under the scheme although it is primarily for low-income households in low council tax bands who have poor energy efficiency ratings. It’s available in England, Wales and Scotland but not in Northern Ireland.

The Government said 300,000 families will benefit from the £1bn money and this is on top of 2.4m homes that have already benefitted from new energy efficiency measures under existing Government support schemes.

Homes that fall into council tax bands A-D in England and A-E in Scotland and Wales, with an Energy Performance Certificate (EPC) of D or below will be eligible.

There is a new online tool which people can visit to check if they are eligible for this help.  Those who are eligible will be referred to their energy supplier to arrange for the measures to take place. Anyone who is unable to use the online service can call the Great British Insulation Scheme helpline on 0800 098 7950.

Homeowners, landlords, and tenants are able to apply (but tenants need to check with their landlords before an installation is carried out).

How much will it cost?

Eligible households who are able to improve the energy efficiency of their homes will cut their annual energy bills, on average, by between £300 and £400.

Most energy measures should be free for the energy customer but if there is anything to pay, the energy firm will outline these costs when it does its initial assessment of the property. It’s then up to the customer whether they want to go through with the installation or not.

If you were to pay for the installation costs, the overall price depends on the size of the home and what measures are being installed. However, as a rough idea of costs, cavity wall insulation for a mid-terrace house costs an average of £1,500, and loft insulation is £880, according to the Energy Saving Trust (EST)

What does the Government say?

Energy security secretary Claire Coutinho, said: “We are determined to help families keep their homes warm through the winter months and save on their energy costs.

“Our Great British Insulation Scheme will help hundreds of thousands of people, including some of the most vulnerable in society, get the upgrades their homes need, while cutting their energy bills.”

Lord Callanan, minister for energy efficiency and green finance, said: ”Boosting the energy efficiency of homes creates the best long-term protection against fuel poverty for the most vulnerable.

“That’s why we are helping families with extra support to make their homes warmer, while saving hundreds on energy costs.”

What other help is available?

Energy customers who live in homes which do not run on the gas grid may also qualify for support.

A separate tool has been launched for them, to see if they are eligible for a Home Upgrade Grant. This money, for up to 25,000 homes, will provide measures including insulation, new windows, heat pumps and solar panels. Those who are eligible will be referred to their local council to arrange for the measures to be carried out.

Mike Thornton, chief executive of the Energy Saving Trust, said: “Improving the energy efficiency of our homes is a vital part of addressing both the energy crisis and climate emergency.

“By reducing demand for fossil fuels, it provides a triple win long-term solution for cutting energy bills, decreasing carbon emissions and improving energy security.

“The launch of the Great British Insulation Scheme is therefore a welcome development as it will mean more households are eligible for financial support for insulation measures and comes at a crucial time as we approach the colder winter months.”