Replace the failed Green Home Grants

MPs have called for the government to look into replacing the Green Homes Grant scheme, which was scrapped earlier this month.

The Environmental Audit Committee (EAC) this week has written to business secretary Kwasi Kwarteng calling for clarity for contractors and homeowners.

The Chancellor Rishi Sunark announced in his summer statement last year that The Green Homes Grant scheme will allow people to apply for up to £5,000 ($6,276) to fund green renovations on their homes. The cash could be used to fund insulation, eco-friendly boilers, and other energy efficient improvements. The grant was axed in March, after it reached just 10% of the 600,000 homes the chancellor promised to improve.

UK homes account for 20% of the country’s greenhouse gas emissions, with 19 million homes failing to achieve an EPC rating of C or above. The EAC committee said there was a pressing need to make homes more energy efficient.

Dunne noted that cutting emissions from UK homes would be a key part of reaching the government’s net zero by 2050 target. On Tuesday, the government announced even more ambitious targets for emissions reduction, pledging to cut carbon emissions by 78% by 2035.

There is still financial support available for properties via the Eco energy grant, also known as the Home Heat Cost Reduction Obligation, this obligation provides free boiler and insulation grants to those who receive certain means-tested benefits. It aims to reduce fuel poverty amongst low-income households by ensuring that heat is generated as efficiently as possible and is prevented from escaping from the home.

The latest phase will run until March 2022 and gives households that missed out on the initial two ECO programs an opportunity to benefit from warm housing policies. Under previous ECO schemes, grant funding was given for gas boilers, oil boilers, LPG boilers, and electric heaters. ECO3 is limited to gas boilers only.