Hundreds of thousands of homes across the country are expected to get free home insulation under a three-year scheme announced by the government today.
The plan, dubbed 'ECO+' will run from April 2023 to March 2026, according to Business Secretary Grant Shapps.
The scheme will hand out loft and cavity wall insulation, saving eligible homes with a D or worse efficiency rating an average of £310-a-year off their energy bills.
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However, the £1bn plan is thought to be worth a third of the £3bn called for by industry chiefs. And Labour blasted it for helping a "tiny fraction" of those in the cost of living crisis.
Here is everything we know about the plan so far.
What has been announced?
ECO stands for Energy Company Obligation (ECO) and involves energy suppliers helping you retrofit your home to make it more energy efficient. It has been running since 2013.
The existing ECO4 phase is for social housing, low income or fuel-poor tenants. Under the new phase, which runs from April 2023 to March 2026, people in certain homes will be able to get loft insulation and cavity wall insulation.
These are among the cheapest home upgrades but have a big effect - the government claims it could save eligible households £310 a year in bills. It is part of Chancellor Jeremy Hunt's bid to cut Britain’s energy use 15% by 2030.
Who will be eligible?
Details are quite scant but the government has laid out basic principles. For most of the help you’ll have to fulfil two criteria at the same time - your home must be in a “lower council tax band” and also have an EPC of D or worse.
Lower bands are classed as A-D in England, A-E in Scotland, A-C in Wales. The remaining 20% of the help will be focused instead on the most vulnerable, including those on means-tested benefits or in fuel poverty, the government said.
It is not yet clear how this eligibility will be decided, with the details set to be thrashed out in a consultation starting today.
How much help will I get?
Officials expect around 410,000 households to benefit from the scheme, which on average works out at just under £2,500 each.
It is not a grant scheme so you won’t be given cash directly, and there is no set amount you’ll get. However, insulation tends to be at the cheaper end of the spectrum.
And for the 80% of people in the ‘general eligibility’ group, they may have to pay some of the cost of pricier measures themselves.
Suppliers will be “incentivised to achieve an average level of consumer contribution”, and “have flexibility to achieve this average by leveraging higher contributions from wealthier households and for more expensive measures.”
Reports had claimed people would also be offered smart energy controls like thermostatic radiator valves, but these are only being offered to the poorest 20% of people if they are also getting insulation.
How do I apply?
People can contact their energy supplier or local authority to see if they are participating in the scheme. This is because it is an obligation on suppliers to administer, rather than a grant scheme.
A new Gov.uk website will also provide information on eligibility.
Is this the same as the energy saving ad campaign?
No. Separately an £18m publicity blitz is confirmed today to urge people to turn down their boiler flow temperature from 75C to 60C - saving £160 a year off bills for a typical home. Families will also be urged to turn down radiators in empty rooms, and draught-proof windows and doors.
Energy-saving tips will be available on the existing government website, https://helpforhouseholds.campaign.gov.uk/ .
But the campaign's budget is less than original rumours of £25m.
What do supporters say?
Business Secretary Grant Shapps said people would see the scheme "protecting the pounds in their pockets, and creating jobs across the country." Saving energy will cut costs to taxpayers, because the government is propping up bills until 2024.
Chancellor Jeremy Hunt said: "It will help hundreds of thousands of people across the UK to better insulate their homes to reduce consumption, with the added benefit of saving families hundreds of pounds each year."
What do critics say?
Shadow Climate Change Secretary Ed Miliband said: "This reheated announcement with no new resources, is far too little too late and will help only a tiny fraction of the millions of people facing a cost of living emergency this winter.
"Labour’s Warm Homes Plan would insulate up to 2 million homes a year, saving pensioners and families up to £1,000 off their energy bills. Rishi Sunak wants to crawl towards warmer homes and cheaper bills for our country. Labour will sprint for it."
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