Government to aid UK households minimise cost of energy

The UK government has announced its goal to assist households in lowering expenses through an expanded energy scheme. According to the government, UK households can save £310 every year through the new scheme to insulate the draughtiest UK homes.

Starting next spring, the government plans to spend £1 billion on grants for UK households that are in reduced council tax bands and possess low energy efficiency ratings.

According to the Department for Business, Energy, Industry, and Skills (BEIS), households not benefiting from other government support would have an upgrade for their homes under the Energy Company Obligation(ECO+) scheme.

UK Government wants to insulate more homes

The Secretary for Business and Energy, Grant Shapps, said the grant would assist millions of Britons in minimising the cost of energy this winter and beyond. He said this on Monday, as part of the government's plans to drive the UK to meet its target of becoming energy independent.

Shapps also mentioned that the ECO+ scheme would allow thousands of Britons to insulate their households, thereby protecting their money and enabling job creation in the country.

According to BEIS, the grant will enable UK households to finance low-cost measures like cavity and loft wall insulation. This will lower the expected average heating cost for each household to only £1,500.

BEIS stated that a public information campaign of £18 million will help UK households cut their energy usage and bills while staying warm in the winter. Some of the government's top recommended actions include:

• Turning down the boiler flow temperature from 75⁰C to 60⁰C.
• Reducing heating loss from properties by draught proofing windows and doors.
• Turning down radiators in empty rooms.

BEIS stated that 46% of UK households currently have an energy efficiency rating of C or over, up from 10% in 2010.

In his Autumn Statement, Chancellor Jeremy Hunt unveiled a new goal to minimise the demand for energy by 15% in 2030.

BEIS stressed that the goal would be funded by an extra £6 billion investment after 2025, adding that the ECO+ scheme would assist many people in improving the insulation of their households.

Georgia Walker, the Greenpeace UK energy campaigner, stated that almost 7 million households had difficulty with fuel poverty, while 19 million households in Wales and England were poorly insulated.

ECO+ to support more UK households

The existing ECO scheme (known as ECO4) targets people who need support most; those in social housing, on a low-income or fuel poor. However, the government plans up to 80% of ECO+ to help a wider customer base. This will include people who struggle with the significant rise in energy bills but are currently ineligible for support under existing government-sponsored energy efficient schemes.

The UK Government plans to devise the necessary laws for the scheme to launch in spring 2023 and run until March 2026. However, it is possible for the government to collaborate with energy suppliers for early delivery in 2023.

The consultation will take place from 28 November to 23 December.