Government announces big energy plans: are you eligible for an insulation grant?

An extra 300,000 homes could benefit from financial support for insulation, the government announced today. It's part of a much larger plan for an 'energy revolution' to boost the country's energy security and independence, reduce household bills and continue towards a Net Zero carbon emissions ambition. 

More chargepoints for EV owners, extra funding to change your gas boiler to a heat pump, a plan to make electricity bills cheaper and changes to planning rules to make it easier to install low-carbon technology were among today's raft of announcements for plans affecting both households and businesses.

The plans should 'bring bills down, keep them affordable, and make wholesale electricity prices among the cheapest in Europe', according to the government.

The Great British Insulation Scheme will provide grants for energy efficiency measures, including insulation and boiler controls, for more people. Unlike the previous ECO scheme, households in council tax bands A-D will be eligible.

The government plans to 'power more of Britain from Britain' with support for more green energy generation within the UK, which it says will also open up jobs in green industries. 

It says it will set out plans to make electricity bills cheaper and speed up electrification for homes and businesses in the next year. We don't know much detail beyond that it will 'rebalance gas and electricity costs in household bills'. Electricity is currently around three times more expensive per unit than gas.

Energy bills are still higher than ever. Head to our 10 ways to save on household energy for ways to help keep yours in check.

Insulation grants for an extra 300,000 homes 

If your home is in council tax band A-D, you may well be eligible for financial support to make it more efficient, as part of the newly announced Great British Insulation Scheme.

Up to 80% of people whose homes are in band A-D will qualify, according to the government – 300,000 more than under the present scheme.

Improvements could include loft insulation and cavity wall insulation. These energy-saving improvements could save you £300 to £400 per year on your energy bills.

The Great British Insulation Scheme is the new name and model for the ECO scheme, which has already been helping to insulate inefficient homes for several years, predominantly for those who receive means-tested benefits. 

The new scheme will begin in spring and run until March 2026. It will target two groups:

• The 'general group' applies to homes with an EPC rating of D-G and in council tax bands A-D in England or A-E in Scotland. You will only be able to receive one energy-saving improvement.
• The 'low-income group' applies to homes with an EPC rating of D-G that also receive means-tested benefits or are the least energy-efficient social housing. This group will be able to get heating controls as well as insulation.

Suppliers must deliver at least 20% of their annual targets to households in the low-income group. 

If you rent privately or live in social housing, eligibility will be more restricted. 

You'll be able to apply for the scheme yourself from this summer, when a portal will launch on gov.uk. 

The government will put legislation together in the summer to bring its plans into action, but energy suppliers shouild be able to start helping households before then.

Find out more about the ECO grant scheme and other home grants you could be eligible for.

New investment for electric cars, heat pumps and other green energy 

It's not just insulation that the government plans to invest in. Other consumer-facing elements of today's announcement include a plan for tens of thousands of new electric vehicle (EV) chargers to be be installed as part of the Local Electric Vehicle Infrastructure fund and On-Street Residential Chargepoint Scheme.

Our research has found that a lack of charge points is one of the main reasons people don't consider an EV for their next car. Overall, two thirds said they didn't plan to buy an EV next. 

The government also announced it will consult on plans that car and van manufacturers must sell a higher percentage of vehicles that have zero emissions from 2024.

See the best electric cars for 2023.

The Boiler Upgrade Scheme, which gives a grant of up to £5,000 towards buying a heat pump, will be extended until 2028. Plus the government is investing £30m to try to boost the manufacture and supply of heat pumps in the UK – something that will be essential if the industry is to meet growing demand.

Find out more about the Boiler Upgrade Scheme and how you can benefit or why the heat pump grant scheme is under fire for low take up.

Further plans for British energy overhaul 

Other announcements today include:

• Progressing Carbon Capture Usage and Storage projects; 
• A £160m fund to support floating offshore wind;
• A £240m fund for new green hydrogen projects;
• Incentivising investment in renewable energy through the fifth round of Contracts for Difference with a £205m budget;
• A competition (called Great British Nuclear) to find the best Small Modular Reactor technologies;
• Reforming the planning process so that solar power and offshore wind projects can be built faster;
• Working towards sustainable aviation fuels with a £165m second round of its Advanced Fuels Fund.

Rocio Concha, Which? director of policy and advocacy, said:  'The government's new energy efficiency proposals are an important step in the right direction.

'The rebranded ECO+ scheme will extend government support so that homeowners in council tax bands A-D are able to access grants to improve the insulation of their homes. This will help to reduce energy bills in the long term – making homes warmer and more comfortable and cutting carbon emissions. 

'Alongside these changes, the government needs to ensure households that are not able to access funding from the ECO scheme or other government programmes do not face unreasonable barriers to insulating their homes. This means working with key businesses to make sure consumers can access good quality information and advice on making their homes more energy efficient, making it easier to find a qualified and reliable installer, and helping to make insulation measures affordable for everyone.'