Ellie Ames 18 December 2023

£6bn allocated for energy efficiency schemes

£6bn allocated for energy efficiency schemes image
Image: KingTa / Shutterstock.com

The Government has revealed how it plans to spend £6bn improving the UK’s energy efficiency.

The funding, available between 2025 and 2028, was announced by chancellor Jeremy Hunt in last year’s Autumn Statement.

The Boiler Upgrade Scheme, which helps households replace fossil fuel heating systems with heat pumps or biomass boilers, will receive £1.5bn.

A further £1.25bn will be go towards insulating or retrofitting social homes through the Social Housing Decarbonisation Fund.

Through a new local authority retrofit scheme, £500m will be available to households on low incomes, including those off the gas grid.

A new ‘energy efficiency grant’ will receive £400m, with further detail on the scheme to be announced ‘in due course’.

The Government said the schemes were ‘subject to business case approval and value for money assessments’.

Energy Saving Trust chief executive Mike Thornton said: ‘We welcome these new schemes and additional funding, which will help provide much needed incentives to encourage more people to upgrade their homes.

‘We look forward to learning more about the detail including plans for roll out and engagement, as well as how we can help the UK Government to ensure they are as successful as possible in supporting people to get the right measures into their homes.’

Plans for a new energy efficiency taskforce, which would support a target to reduce the UK’s energy use by 15% by 2030, were also announced in last year's Autumn Statement.

But the taskforce, set up in March, was scrapped after six months, with its work to be ‘streamlined’ into other government activity.

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