Govt Home Insulation Scheme

Jul

12

Chancellor Rishi Sunak unveils Green Homes Grant Scheme

You may already have seen that Rishi Sunak, the current Chancellor of the Exchequer, announced the Green Homes Grant Scheme on Wednesday, which offers vouchers for as much as £5,000 for households to cover energy bills around the UK. But what is the scheme and how will it benefit you?

Read How To Apply for the Green Homes grant vouchers in September 2020.

What is the Green Home Grant Scheme?

The Green Scheme initiative is one of the many ways in which the government is attempting to rebuild the UK economy after the knock it has taken due to the coronavirus pandemic, alongside reducing VAT in the hospitality sector, amongst other initiatives.

This scheme gives funding to households in the form of vouchers, which are worth up to £5,000. These vouchers will be provided by the Government from September, and they are to be used to fund energy- saving improvements around the home.

It aims to not only restart the UK economy, which has been suffering horrendously due to Covid-19, but also so that the UK can meet its 2050 target of net zero carbon emissions, which the government has been increasingly pressured to focus on.

The Chancellor estimates that this voucher will cover up to 66.6% (two thirds) of the cost per household, leaving homeowners and landlords to pay the remaining third. However, poorer households could possibly receive a maximum amount of £10,000 towards paying for greener household solutions, and the Government “will cover the full cost” of any eco-friendly measures up to that price.

This scheme will account for £2 billion of the Government’s £3 billion plan to restore the UK economy to its former glory, after struggling significantly through the pandemic and lockdown. When asked about how this scheme will help Britain by the BBC, Alok Sharma said that this means “lower bills for households, hundreds of pounds off energy bills every year” and its “very good news for the environment”.

This scheme also indicates an attempted restoration of the UK economy as we start to reintegrate with society after isolation for the past few months and a return to normality.

How will the scheme work?

Once the scheme (which is expected to launch in September 2020) is open, homeowners and landlords alike will be able to apply online to receive this funding for the installation of eco-friendly features. The application will, additionally, list approved suppliers in your local area. You will receive the voucher from the Government once a quote for the job is provided.

Who is eligible and what sort of things do these vouchers cover?

All homeowners and landlords in the UK are eligible to these vouchers. They are expected to cover various energy saving methods, including:

  • i. Double Glazing
  • ii. Energy saving light bulbs
  • iii. Home Insulation
  • iv. Energy efficient doors
  • v. Draught proofing
  • vi. Renewable energy - solar thermal / air & ground source heat pumps

Chancellor Sunak has estimated that this scheme could save the British public up to £600 a year on their home energy bills.

How will this scheme help?

Greenpeace has welcomed the introduction of the Green Homes Grant Scheme, stating that it is a “strong start” in the fight to protect the environment. However, they have warned that there needs to be a lot more funding, especially in cleaner transport and the power sector.

Rosie Rogers, a representative of Greenpeace UK said “All roads must now lead to a green recovery- there is no alternative option”, whilst Groundwork’s chief executive Graham Duxbury happily stated that “It’s encouraging that we’re starting to see the Government deliver on its promises to invest in a green recovery”

This scheme is a response to the increase in calls for a green recovery, especially as there have been widespread calls for the government to deliver its promise to invest £9.2 billion in schemes to protect the environment, and also help the planet recover from the damage of the UK’s carbon footprint.

Kate Davies, an executive director at IMLA, stated: “The Government is absolutely right to direct resources towards making our homes more environmentally friendly. [...] homes are a big contributor to carbon emissions”.

This scheme makes it so much more affordable to reduce your energy consumption at home and protect the environment. These environmentally friendly installations will make it a lot easier for the UK to reach its target of Net 0% carbon emissions by 2050, improving the UK economy and helping to restore the environment to its original state.

We will, of course, keep you up to date with all the rules, eligibility criteria and restrictions as they become available, but this could spell great news to homeowners across the UK that are looking to make their homes greener and more energy efficient.

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