How to share in £630m of grants to improve energy efficiency

Tens of thousands of households will soon be able to apply for £630 million for energy efficiency improvements, including free insulation and heat pumps.

That’s because the government just put that money into its Home Upgrade Fund, which is open to low-income homes and some other homes that aren’t energy efficient — as long as they live in the right areas.

The idea is that 25,000 homes can receive financial assistance to improve energy efficiency.

Think of free exterior wall insulation, cavity wall insulation, attic insulation, new windows and doors and draught-resistant measures, but also heat pumps and solar panels.

The government estimates that this upgrade work could save households on average between £220 and £400 a year in energy bills.

Emma Pinchbeck, managing director of the charity Energy UK, said: ‘Improving the energy efficiency of drafty homes and buildings in Britain is the best way to permanently reduce energy bills, while also increasing the UK’s energy security and carbon emissions are reduced.”

But the exact details of the Housing Upgrade Fund are still being worked out.

Here’s everything we know so far about how the scheme works, who’s eligible and how they get their hands on money to upgrade their home.

Who is eligible for the Home Upgrade Fund?

The scheme is open to households that do not have a gas network, have a low income or have an energy-efficient home in bands D to G – the lowest bands.

This also applies to homeowners and renters, although the latter need their landlord’s permission – and the landlord may have to pay a third of the work.

But the scheme is a postcode lottery, as not all UK households can apply for it.

The Department for Business, Energy and Industrial Strategy issues the money to local authorities, who in turn pass it on to households in their area.

Not a fan: the new scheme also allows installation of heat pumps depending on where you live, but not all Brits want the appliances installed

Not every municipality applied for the money, and not all municipalities that applied were successful.

Here’s how much each region in the UK receives from the Home Upgrade Fund:

• West Midlands: £152.7 million
• East Midlands: £3.2 million
• London: £12 million
• North West: £83.8 million
• South West: £77.5 million
• South East: £161.2 million
• East of England: £23.5 million
• North East: £28.5m
• Yorkshire and the Humber: £41.1 million

The scheme runs from April 2023 to March 2025.

What do I get from the Housing Upgrade Fund?

This is where it gets a little vague.

Each municipality has the flexibility to manage the money in a slightly different way and will have slightly different requirements.

So in some areas homeowners get money right away, while in others the council hires a contractor and pays them to do the job.

For example, councils such as Dorset, Bournemouth, Christchurch and Poole have not yet announced what they will do with their money.

In Oxfordshire County Council, eligible properties must not have household income in excess of £31,000.

The municipality then gives priority to appropriate insulation and then to sustainable heating, including air source heat pumps. Next come solar panels.

In areas such as North Yorkshire County Council, properties require a household income of £30,000 or less to qualify, or a means-tested benefit.

They are then given a council survey and line up for up to £25,000 in cash to upgrade their homes.

This includes exterior and interior insulation, solar panels and heat pumps.

How can I apply for the Housing Upgrade Fund?

You must apply directly to your municipality once the scheme starts in April 2023.

Some local authorities already have mailing lists you can sign up to right now, so you’ll be the first to know when programs finally start.

You can find your municipality and their contact details via this government website.