Across the UK, hundreds of thousands of homeowners could receive up to £5,000 in vouchers for energy efficiency home improvements, the poorest could receive up to £10,000.
A £2bn grant scheme is due to be set out by Chancellor Rishi Sunak in England for energy related projects such as insulation. This will form a part of a wider £3bn plan to reduce carbon emissions. These grants could help to support more than 100,000 jobs in the sector, according to the Treasury.
Labour, the opposition party stated that those who are renting could be left out and called for a “broader and bigger” plan to reduce emissions.
The above comes ahead of a summer statement from the Chancellor on Wednesday, there is also speculation that he may announce a cut on stamp duty and VAT.
A former chancellor and numerous business leaders want more and have called for radical action to boost the economy in these trying times, primarily due to the coronavirus crisis.
The Treasury has said that the government will pay for at least 66% of the cost of home improvements that save energy, this comes under the Green Homes Grant. As an example, a homeowner could install cavity wall and floor insulation for a cost of £4,000 – he/she would pay £1,320, with the government contributing the remaining £2,680.
The new initiative is set to launch in September, recommended energy efficiency measures and information surrounding accredited local suppliers will be published alongside the online application process at a later date. A voucher will be valid once a supplier has offered a quote and the work passes approval.
Alok Sharma, the Business Secretary said that double glazing would also be included under the scheme and that the poorest households across the country could receive up to £10,000 towards costs. He added: “What [the scheme] ultimately means is lower bills for households, hundreds of pounds off energy bills every year, it’s supporting jobs and is very good news for the environment.”
Half of the total fund – which is due to be spent in one financial year – will go to the poorest homeowners, according to the government. This group will not be asked to contribute anything towards the improvements. Improved insulation could save some households £600 each year on energy bills.
This investment would “kick-start our economy” said Mr Sunak. Thousands of jobs would be created for the many existing skilled workers in the UK. Especially important at a time when the country looks to recover from the coronavirus pandemic.
“As Britain recovers from the outbreak, it’s vital we do everything in our power to support and protect livelihoods across the nation,” he added.