New grant scheme to cut home fuel bills

Annex – Green Homes Grant Voucher Scheme Further Details

  1. Who is the scheme for? • The voucher scheme is open to owner occupiers (freehold/leasehold), park homeowners and landlords who let privately or through the social rented sector in England. It is not open to non-domestic properties or to new build homes which have not yet been occupied. • Homeowners can apply for a voucher that funds up to two thirds of the cost of hiring trades people to upgrade the energy performance of their homes – up to a maximum contribution of £5,000. Low income and vulnerable homeowners, including park homeowners and those on certain benefits, will be eligible for a voucher covering up to 100% of the cost, up to £10,000. • The Green Homes Grant Local Authority Delivery element will focus on owner occupiers, those in the private and social rented sector, with a household income of under £30,000. Local Authorities will set out detailed eligibility criteria in due course.
  2. What are the specific benefits of the Green Homes Grant to the consumer?

• The Green Homes Grant scheme will deliver energy efficiency improvements to over 600,000 homes, supporting over 100,000 jobs if all vouchers are claimed. It could help save families up to £600 a year on their energy bills. • It will make people’s homes warmer and more environmentally friendly. It will deliver average savings of nearly £300, and significantly more per year for those living off the gas grid in the low-income and vulnerable households’ scheme. 3. What can the voucher be spent on? • Vouchers will contribute towards the cost of specific home insulation and/or low carbon heating measures. Homeowners and social and private landlords will be required to install at least one of the following, using a voucher which they will receive before works commence:

Primary Measures 1. Solid wall, under-floor, cavity wall, loft, flat roof, room in roof or park home insulation; or 2. Where the home is suitably insulated, air source or ground source heat pump, solar thermal, biomass boiler or hybrid installation.

• A voucher may be used to help meet the costs of installing top-up insulation (for instance top-up loft insulation) but may not be used to cover the costs of removing and replacing existing insulation.

• In addition, households can use their voucher for further energy saving measures. These include one or more of the following:

Secondary Measures 1. Draught proofing: draught-proofing your home (for example around windows and doors) can block up unwanted gaps that let cold air in and warm air out.

3

  1. Windows and doors: Double/triple glazing (where replacing single glazing), secondary glazing (in addition to single glazing), upgrading to energy efficient replacement doors (where replacing single glazed or solid doors installed prior to 2002). 3. Hot water tank thermostats and insulation 4. Heating controls: e.g. appliance thermostats, smart heating controls, zone controls, delayed start thermostat, thermostatic radiator valves • The total amount households get towards the cost of secondary measures cannot exceed the total amount they get for primary measures.

Consumers can check their eligibility for the voucher and receive tailored advice at the Simple Energy Advice website and make applications at the following website: https://www.gov.uk/apply-green-homes-grant

  1. How can I participate in the scheme as a business/tradesperson?

To carry out work under the scheme, all tradespeople and businesses will need to be certified to install energy efficiency or low carbon heat measures to relevant standards and to register their certification with TrustMark. Registered businesses can sign up to take part in the scheme at https://www.gov.uk/register-as-green-homes-grant-installer.

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6 Comments

  1. Aden
    Posted October 3, 2020 at 4:45 pm | Permalink

    And raise taxes…

  2. Jess
    Posted October 3, 2020 at 4:47 pm | Permalink

    The operative would is “could” help save £600. It won’t but it could. It’s just a gimmick to help sell insulation for favoured companies and to buy a few votes.

    • Alan Jutson
      Posted October 11, 2020 at 9:15 am | Permalink

      Jess

      The correct insulation installed properly will save money on fuel consumption absolutely no question, but some of the benefits may also be taken by the householder in being more comfortable, with the higher temperatures gained in the property with that insulation when fitted.
      The amount money saved will vary, and will depend upon the scale of work completed.

  3. Mark
    Posted October 3, 2020 at 5:18 pm | Permalink

    The maths:

    £5,000 as a 2/3rds contribution to labour cost implies up to £7,500 per project on labour. It is hard to imagine the cost of kit to be less than £2,500 if it costs so much to install.

    So we can say £10,000+ per project to save £300 per year, or an average payback period of 33 years. Or at an interest rate of 3%, a project that never pays off.

    This is the kind of lunacy that can only come from government/civil service ideas about investment where a proper return is never called for.

    I propose that these projects should show a 7 year payback as a maximum. That way, we know that they are offering a good return on investment, and are aimed at the cases that have a proper energy payback too. Even then experience teaches us that theoretical savings are rarely if ever matched in practice, as the work of Prof Mike Kelly has shown.

  4. Alan Jutson
    Posted October 4, 2020 at 10:29 am | Permalink

    Shame a competent homeowner cannot claim anything if wanting to install such items themselves in their own house.
    By eliminating the labour cost, the spend on materials could mean a far more comprehensive project could be completed.
    An opportunity lost, such work could be notified to building control, inspected after completion to ensure standards were maintained.

    Fact of the matter is many existing and new companies will register under the scheme, many will employ unskilled cheap labour to complete the work, much of it in an unsatisfactory manner.
    As someone who has sat on British Standards Committee’s, been Vice Chair of the National Loft insulation Contractors Association, and also on the Cavity Wall Insulation Association many years ago, I’ve seen it happen before, it will happen again, then once the scheme ends all those so called new jobs will go.

  5. UKQanon
    Posted October 4, 2020 at 5:35 pm | Permalink

    Another load of government BS.

  • About John Redwood


    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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