Homeowners to get £5,000 energy-saving vouchers

New government grant scheme aims to cut emissions 

Chancellor Rishi Sunak has revealed that hundreds of thousands of homeowners will get vouchers of up to £5,000 for energy-saving home improvements, with the poorest getting up to £10,000.

Chancellor Rishi Sunak said: "From September, homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient and create local jobs.

"The grants will cover at least two thirds of the cost, up to £5,000 per household.

"And for low income households, we’ll go even further with vouchers covering the full cost, up to £10,000."

Homeowners will be able to spend the money on things like insulation, eco-friendly boilers, low energy lighting and energy efficient doors.

The Green Homes Grant is a £2 billion initiative available to homes in England.

The Treasury also said that the grants could help create more than 100,000 jobs.

How does the Green Homes Grant work?

Under the Green Homes Grant, the Government will pay at least two-thirds of the cost of any home improvements that save energy.

For example, a homeowner could install a cavity wall and floor insulation costing £4,000.

Using the grant, the homeowner would pay £1,320, while the Government will cover the remaining £2,680.

How do you apply for the grant?

Homeowners will be able to apply online for the Green Homes Grant from September.

Vouchers will be issued once an accredited supplier has provided a quote and the work needed on your home has been approved.

The scheme is not available to renters.

How much could you save?

Better insulation could save some homes around £600 a year on energy bills, according to Treasury estimates.

Sarah Broomfield, energy expert at Uswitch, welcomed the move.

She says: “The extra heating and electricity used during lockdown is predicted to add £195 a year to the average home’s bills.

“So the Chancellor’s initiative to help hundreds of thousands of people make their homes more energy efficient could not come at a better time - especially as energy consumption is set to hike as soon as the temperatures drop.

“It is particularly important that half of the fund will focus on helping the poorest households, but it’s disappointing that those who rent their home will miss out."

Experts say that while the scheme is a step in the right direction, the Government needs to do more to help renters reduce their emissions too.

Matt Clemow, chief executive of Igloo Energy, says: “The pledge to spend half the fund on making improvements to the poorest households is vital. These are the homes who will benefit the most from cheaper energy bills.

"But the government must also work to help renters who want to reduce their emissions but cannot make such drastic changes to their homes. We cannot leave part of the country behind as we transition to a greener economy.”