Thousands of low-income households could save up to £400 a year on their energy bills
THOUSANDS of struggling households could see their energy bills fall by up to £400 a year with a new £75 million fund.
New funding for a free energy efficiency improvement program will help social and low-income households reduce their bills.
Thousands of homes with poor insulation and outdated heating systems are in line for upgrades, the government has announced.
The funding will be offered to 42 councils and housing associations across England to help them co-finance installations in up to 8,000 homes.
The government said it will also support more than 1,300 jobs in the UK retrofit industry.
It follows the latest round of awards from the Social Housing Decarbonisation Fund (SHDF), which has allocated more than £1 billion since 2019 to help around 100,000 households modernize by September 2025.
Under the scheme, households can retrofit their homes with wall and loft insulation, double glazing, heat pumps and solar panels.
They will not be limited to one installation and can have their home insulated and their doors and windows modernized to reduce heat leakage and lower their energy bills.
If eligible, those living in social housing do not need to do anything as their housing provider will contact them.
Other households will need to check what their local authority has to offer and may need to apply for help.
Different local authorities provide the funding in different ways, so you should check directly with your council.
North Yorkshire Council, Portsmouth City Council, Wandle Housing Association in London and Gentoo Group in Sunderland are among those receiving funding from this round, which is open to applicants who had not received SHDF funding in the previous wave.
Energy Minister Claire Coutinho said: “Our Social Housing Decarbonisation Fund helps families keep their homes warm and their bills low.
‘We want to support hardworking families to make changes, instead of burdening them with unnecessary costs.
“This funding will help a further 8,800 households today save around £400 a year on their energy bills.”
Kate Henderson, chief executive of the National Housing Federation, said: ‘Housing associations play a vital role in helping the country meet net zero targets and are already leading the way in energy efficiency, but funding is essential to support this work to maintain.
“The funding announced today will give housing associations the certainty and confidence they need to plan and deliver more renovation projects, tackle fuel poverty and improve the homes of their residents.”
The fund is part of a wider government support package to improve the energy efficiency and low-carbon heating of homes and businesses across the country, reducing reliance on fossil fuel heating and lowering household energy bills.
About £20 billion has been allocated to the current Parliament and the next.
This includes money going towards measures such as the Boiler Upgrade Scheme, which helps households switch from fossil fuel heating systems to cleaner, low-carbon alternatives.
Last week the government announced that rules requiring boiler companies to increase the number of heat pumps they sell – prompting companies to introduce a so-called “boiler tax” – have been postponed for a year.
The clean heat market mechanism, which initially required boiler manufacturers to match or replace 4% of their boiler sales with heat pumps or face a £3,000 fine for each missed installation. This mechanism would be introduced on April 1.
Campaigners accused Ms Coutinho of pandering to major boiler manufacturers after previously accusing companies of “price gouging”.
Ministers also announced changes to the £7,500 heat pump grants offered by the Government, with households no longer required to install loft and cavity wall insulation in their homes to qualify for the funding.
The measures are part of a goal to phase out gas boilers and deliver 600,000 clean electric heat pump installations per year by 2028.
What energy bill help is available?
There are a number of different ways to get help paying your energy bills if you’re struggling to make ends meet.
If you get into debt, you can always approach your supplier to see if they can put you on a repayment plan before imposing a prepayment meter.
This means that you pay off what you owe in installments over a certain period.
If your supplier offers you a payment plan that you don’t think you can afford, contact them again to see if you can get a better deal.
Several energy companies have subsidy schemes available for customers who have difficulty paying their bills.
But the eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers who are struggling to pay their energy bills can receive grants worth up to £1,500.
British Gas is also providing assistance through its British Gas Energy Trust and Individuals Family Fund.
You don’t have to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power are all also offering grants to struggling customers.
Thousands of vulnerable households are missing out on extra help and protection by not registering with the Priority Services Register (PSR).
The service helps support vulnerable households, such as the elderly or ill, and some of the benefits include advance warning of power cuts, free gas safety checks and extra support if you’re struggling.
Contact your energy company to see if you can submit an application.