Government pledges £80m to cut energy bills in decarbonisation bid

Thousands more social housing tenants will be helped to cut energy bills with additional government grants available for home energy efficiency upgrades.

Energy Security and Net Zero Secretary Claire Coutinho announced up to £80m in additional funding through the Social Housing Decarbonisation Fund – which will cut energy bills by around £240 a year and increase for some of the lowest-income households.

More than 100,000 households in England are already benefiting from the scheme, and today’s funding is enough to upgrade an additional 9,500 homes.

What measures will help cut energy bills and reach net zero?

Measures range from installing new wall, loft, or underfloor insulation to supporting families to switch to low-carbon heating. This will help to cut energy bills and support around 2,000 jobs.

As part of the government’s new pragmatic and proportionate approach to reaching net zero, eligible tenants will receive the energy efficiency upgrades free of charge through their social housing provider, whether local councils or housing associations.

Secretary of State for Energy Security Claire Coutinho stated: “We are delivering net zero in a way that supports the British public and does not burden hardworking families with additional costs.

“Our Social Housing Decarbonisation Fund is delivering warmer homes and energy bill savings of around £240 for some of the lowest income families, as well as supporting thousands of jobs.”

The UK is committed to increasing energy efficiency

The government has a strong record on energy efficiency, with the proportion of homes in England with an EPC rating of C or above up from 14% in 2010 to nearly half of all homes now.

energy efficiency, cut energy bills
© shutterstock/NicoElNino

Today’s funding to cut energy bills will help drive up the energy performance of homes with an EPC rating of D or below.

The scheme forms part of the government’s commitment to reduce overall UK energy demand by 15% by 2030, as well as supporting the ambition for the UK to move towards ever-greater energy security and independence.

The government also plans to run a consultation on energy efficiency standards in the social rented sector.

“The UK is a trailblazer when it comes to reducing carbon emissions, cutting them faster than any other G7 country,” said Lord Callanan, Minister for Energy Efficiency and Green Finance.

“By supporting families to improve their household energy efficiency and cut energy bills, this additional funding will deliver measures such as new insulation and low-carbon heating for even more households – helping them save money and cut emissions.”

Local and combined authorities, registered providers of social housing, and charities that own social housing will be able to bid for the additional funding to install energy efficiency upgrades in November.

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