The Government’s new £1bn scheme to help hundreds of thousands of homes receive new insulation falls short, climate change charity says.

The new ECO+ scheme, announced today by business and energy secretary Grant Shapps, will extend support to those who do not currently benefit from any other Government support to upgrade their homes.

Around 80% of the £1bn of funding will be made available for those households who are in some of the least energy-efficient homes in the country – that is, those with an EPC rating of D or below – and in the lower council tax bands.

The Government estimates that the new scheme will save consumers around £310 a year.

Mr Shapps also announced a new £18m campaign will give the public advice on how they can save hundreds on their own bills.

‘A new ECO scheme will enable thousands more to insulate their homes, protecting the pounds in their pockets, and creating jobs across the country,’ he said.

‘And in the short term, our new public information campaign will also give people the tools they need to reduce their energy use while keeping warm this winter.’

Simon Brammer, head of cities at climate solutions charity Ashden, welcomed the move but said the Government needs to go much further if it is to reach its net zero targets.

‘Ashden welcomes Grant Shapps' announcement of an extra £1bn for energy efficiency. However, this covers just a few hundred thousand homes over the next three years, compared to 19 million homes that must be insulated by 2035 to hit the government's own net zero targets,’ he said.

‘Most importantly, and quite incredibly, the funding doesn’t come into effect until April next year at the end of winter, so what are the government doing to protect vulnerable people right now during the cold months before April?

‘To reach the target of 19m homes insulated, the government must also urgently tackle the retrofit skills crisis, working with local councils and FE colleges to train people across the country. We need a 10-year plan with committed funding.’