Business Secretary Grant Shapps has been appointed to put in place plans that will see middle-income earners receive energy grants. The grants, worth up to £15,000, will be used to make their homes more energy efficient with features such as extra insulation.
The labor minister is set to announce plans next week that will help families insulate their homes and install smart heating units such as advanced thermostats.
Home insulation will make a huge difference to a home’s annual energy bills as homes will be more efficient at retaining heat.
The £1 billion scheme is called the ‘eco plus’ fund, which targets those who are financially able to contribute some money towards energy efficiency changes.
The plan differs from other energy grants offered to low-income families who are unable to help with financing.
The £1 billion earmarked for funding over the next three years has already been cut from existing budgets.
According to The Times, the scheme will help more than 70,000 homes and will ensure that families are able to save hundreds of pounds each year.
Just insulating a loft space can save £640 per annum and with an installation price of £1,100 it pays off in a couple of years.
Under the plan, the government will fund 75 per cent of the cost of any upgrades and ministers will be sent to decide whether to make the money available to those in council tax bands A to D.
Read more: Jeremy Hunt urges families to cut down on energy use
In another effort by the government to address energy use during the energy crisis, the government is preparing to launch a public information campaign.
The campaign is set to cost £25m to encourage the public to use less energy and councilor Jeremy Hunt has described it as a “national mission”.
“In the end, everyone will be responsible for their own energy bills,” the chancellor added.