The government is introducing a £2bn ‘Green Homes Grant’ to help homeowners increase the energy efficiency of their properties.
The grant was announced by chancellor Rishi Sunak today (July 8) in the Summer Statement in a bid to create “green jobs” in the building and construction sector.
Homeowners and landlords will be able to apply for vouchers from September that will cover at least two-thirds of the cost of updating their property, up to £5,000 per household.
For low income households, Mr Sunak said the government will “go even further” with vouchers covering the full cost, up to £10,000.
In a post on his Twitter page today (July 8) the chancellor said the £2bn grant would help “unlock work for thousands of plumbers, builders and tradespeople”.
The chancellor also announced funding of £1bn to improve the energy efficiency of public sector buildings, and £50m of funding to pilot “the right approach” to decarbonise social housing.
The government expects the measures to make over 650,000 homes more energy efficient and support around 140,000 “green jobs”.
Guy Harrington, CEO of residential lender Glenhawk, described the Green Homes Grant as a “positive measure, given the long-term benefits it will have in creating jobs across all regions in the UK whilst also reducing household bills”.
Colin Fyfe, chair of the BSA Green Finance Taskforce and CEO of Hinckley & Rugby Building Society, said: "The step taken today as the UK government launches its £2bn Green Homes Grant is positive, although only a first step.
"It will promote the creation of very necessary jobs and raise consumer awareness about the economic and environmental value in making properties more energy efficient.
"Now we will need to show them how they do that, and what support can be offered if the £5,000 per household vouchers do not cover the full costs. Building societies are committed to play their part to help house-owners make these positive changes.”
Alongside the Green Homes Grant, the chancellor also confirmed a temporary increase in the residential stamp duty threshold, as part of the government’s plan to create jobs amid concerns of rising unemployment and support the housing market.