From September, homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient, in a £2bn investment by the government.
The grant, announced today by Chancellor Rishi Sunak (pictured), will provide up to £5,000 per household.
Low income households will be able to receive up to £10,000.
Sunak said: “This is going to be a green recovery with concern for our environment at its heart.
“Taken together, we expect these measures to make over 650,000 homes more energy efficient, save households up to £300 a year on their bills, cut carbon by more than half a megaton per year.”
David Cox, chief executive at ARLA Propertymark, said: “Since the withdrawal of LESA (Landlords Energy Saving Allowance), we’ve been calling for a simple grant scheme to help private homeowners and landlords make their properties more energy efficient.
“Today’s announcement is a big step forward to ensure that they can take the necessary steps to do this and ultimately create a greener property sector in the UK.”
Peter Earl, head of energy at Comparethemarket.com, said: “Building greener homes is an essential part of creating a more sustainable future, and this grant is a tentative step in the right direction.
“Lower household bills, annual savings for millions of households, and a greater focus on measures that help our planet are all welcome news for households across the UK.
“However, it’s important to put the amount pledged into context; whilst it is enough to upgrade 650,000 homes, this only represents 2% of all households in the UK.
“One action households can take today is switching to a fixed-term energy tariff.
“Switching is an effective way to reduce your energy costs, and with an increasing number of tariffs that provide renewable energy on the market, going green doesn’t need to cost the earth.”