Man insulating house

£67m funding for local authorities to improve energy efficiency

The government has announced that £67m of funding will go to 22 local authorities across England to help upgrade insulation in homes and install low-cost clean heating, which will see thousands of low-income households see their energy bills reduced by up to £200.

The funding forms part of the government’s Home Upgrade Grant (HUG) scheme and will be allocated to local authorities across England to improve up to 4,300 low-income, off gas grid households, which are reliant on alternatives, such as bottled gas and oil to heat their homes. 

Grants will pay for energy efficiency measures, such as wall and roof insulation and new low carbon heating systems, thermostats and room heating controls, which are expected to be delivered before the end of March 2023.

The government said the money will help people who are most vulnerable to fuel poverty, who are on low incomes and living in off gas grid privately-owned homes, both rented and owner-occupied, with upgrades helping to reduce their bills and make their homes warmer.

It is the first round of funding from a total of £950m that was allocated to the HUG scheme by the government last year and will be available over the next three years to 2025.

Around 1,300 jobs in the green energy sector will be supported as a result of this latest funding, the government said.

It builds on the Sustainable Warmth Competition in December, which saw £152m allocated to more than 250 other local authorities to drive improvements in the energy efficiency of homes.

Commenting, Business and Energy Minister, Lord Callanan said:

“This funding will make a real difference to thousands of low-income households, saving them up to £200 a year on their energy bills through upgrades like better insulation. 

“This is just the first round of the £950m funding we have committed over the next three years and will ensure we help those most in need. It will keep more money in people’s pockets, at the same time as making homes warmer, more comfortable and greener.”

Energy efficiency upgrades from the funding announced will be delivered before the end of March 2023.

PSE will be hosting a Public Sector Decarbonisation in association with Liberty Charge virtual event on 17 March 2022. Join us for the full day event by registering here.

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