Could you claim up to £5,000 to make your home more energy efficient?

A new £2 billion ‘Green Homes Grant’ scheme was unveiled by Chancellor Rishi Sunak last week, which could see eligible homeowners claim up to £5,000 to help pay for energy efficient home improvements.

The scheme won’t be available until September, and full details of how it will work have yet to be announced, but here’s what we know so far.

What is the Green Homes Grant?

The Green Homes Grant will provide at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household. For example, if you were having cavity wall and floor insulation fitted at a cost of £4,000, you’d only have to pay £1,320 and the government would pay the remaining £2,680.

For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household, so these homeowners won’t be required to contribute at all. The government has yet to confirm the level of income you’ll need to be on to qualify for a fully funded grant.

Why has it been introduced?

The aim of the grants is to help homeowners make their properties more energy efficient, so that they’ll use less energy and be warmer in winter and cooler in the summer. It is hoped that the scheme will allow over 600,000 homes across England to be upgraded.

As well as the benefits for homeowners and landlords, the scheme has been set up to support over 100,000 green jobs and help strengthen a supply chain that will be vital if the government is to meet its target of ‘net zero’ greenhouse gas emissions by 2050. Net-zero means that wherever possible fossil fuels will no longer be used, and every tonne of CO2 emitted is matched by a tonne that is removed from the atmosphere.

Which home improvements will the grants cover?

The government has yet to provide a comprehensive list of the energy efficient home improvements the grants can be used for, but the Treasury has said that it can be put towards things like loft, wall and floor insulation. It’s thought that double-glazing will also be covered by the scheme.

Can I claim the grant anywhere in the UK?

No, unfortunately it’s only available to homeowners living in England, so if you live in Scotland, Wales or Northern Ireland, you won’t be able to apply. However, there may be other financial support you’re eligible for to help you make your home more energy efficient. Find out more about the grants and loans that might be available to you here.

How do I claim the grant?

A website will be launched in September where you can apply for a grant online and see the different ways you can make your property more energy efficient. Accredited suppliers who are able to do the work for you will be listed on the site. You’ll need to apply for the grant and arrange quotes for the work. You’ll receive a voucher once the work has been completed.

What are the benefits of making my home more energy efficient?

Making your property more energy efficient not only makes it warmer in winter months, but it will reduce your impact on the environment and can also have significant financial benefits.

According to the Chancellor, the scheme could help save people £300 a year on their energy bills. You don’t have to wait until the scheme is introduced to start exploring ways to make your property more energy efficient. For example, quick tips such as using low energy light bulbs, turning electrical devices off (rather than on standby) and using less water in the kettle each time can all add up to big savings. You can find out other ways to be more energy efficient in our article Save money on your energy bills.

How else can I save money on my energy bills?

Making sure you’re on the most competitive energy tariff possible can also help you reduce your energy bills. Energy regulator Ofgem says that savings can be as much as £305 for someone switching from a typical default standard variable tariff to a cheaper tariff.

The best tariff for you will depend on where you live and on how much energy you use. The three big decisions you will need to consider are price, customer service and your impact on the environment. You can use our energy switching service to compare providers and see how much you could save, as well as seeing the customer service ratings for the suppliers listed.

You can also search for ‘green’ only tariffs, if you are happy to pay a bit more but want to minimise your environmental footprint. There are two types of green tariff, those with 100% renewable electricity and those with both 100% renewal electricity and 100% carbon offset gas which typically cost a little more.

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10 thoughts on “Could you claim up to £5,000 to make your home more energy efficient?

  1. Avatar
    Sophie on Reply

    Would they help with a new roof? It would be pretty cold without one??!
    Or if I had a new roof AND solar panels would they help with both as pointless putting solar panels on a failing roof?
    I’m on minimum wage on my own, although I own the property.

    1. Avatar
      Helen on Reply

      Hi Susan. Thank you for your comment. Our understanding is that it hasn’t yet been confirmed whether energy efficient boilers will be covered by the grants. Mel, our finance journalist, is keeping a close eye on things and will update this article as soon as there is official confirmation.

  2. Avatar
    Anonymous on Reply

    We are planning on replacing some double glazed windows as the existing ones are now faulty. Should we wait until September/is this likely to be included in Green payments?

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