The government has unveiled its planned £6bn funding drive for energy efficiency and heating in a bid to cut carbon emissions and energy bills for households.

Originally announced in the 2022 Autumn budget, the Department for Energy Security and Net Zero (DESNZ) have now detailed how the £6bn funding will be assigned between 2025 and 2028, confirming 200,000 low income homes will receive targeted grants alongside a £1.5bn increase to the Boiler Upgrade Scheme which presently offers grants of £7,500 to households (which has increased from £5,000 earlier this year) switching to heat pumps.  

So far, the 50 per cent increase in the Boiler Upgrade Scheme from £5,000 to £7,500 has led to a 57 per cent increase in applications of the grant. It is hoped that the additional funding will further increase the uptake of heat pumps throughout the UK

As part of the funding allocation, local authorities will be receiving £500m for local retrofit schemes supporting 60,000 low income households with insulation and energy efficiency measures for their homes. The pre-existing Social Housing Decarbonisation Fund will also be able to access an additional £1.25bn of funding from 2025 in order to drive energy efficiency and green retrofit across UK households.

Energy Secretary Claire Coutinho said: “Cutting energy bills is my top priority. Today’s funding will help those who are the most in need and keep around a million more families warm during the winter… We have already made excellent progress with nearly 50 per cent of properties in England now having an EPC of C – up from just 14 per cent in 2010.”

The additional funding will feed into other schemes designed to improve energy efficiency, including:

  • A not yet named £400m energy efficiency grant launching in 2025 which will help households make changes such as better insulation and bigger radiators.
  • The Green Heat Network Fund will be allocated £485m to help 60,000 homes access affordable heating and energy efficiency solutions.
  • The Heat Network Efficiency Scheme will be allocated £45m to improve 100 existing heat networks in a move to reduce bills and improve reliability.
  • The Industrial Energy Transformation Fund will receive £225m to help businesses make the low carbon transition.


Are you looking to save energy and improve efficiency? Refer to our How To Save Energy guide for practical advice, tips and solutions.  

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