Great British Insulation Scheme: Co-Funding Willingness

The Department of Energy and Climate Change of the United Kingdom has launched the Great British Insulation Scheme, a revolutionary programme that aims to considerably improve the energy efficiency of homes across the country. 

With a primary concentration on reducing energy bills and ensuring homes are warm and secure, the programme is also aligned with the ambitious Net Zero goals of the UK government, thereby enhancing national price shock resilience.

The implementation of the programme targets the least efficient homes, including a “general eligibility group” of households in lower council tax bands with an Energy Performance Certificate rating of D or lower. In addition, a “low-income category” includes those receiving means-tested benefits, those living in the least energy-efficient social housing, and those identified as low-income or vulnerable by local authorities or energy suppliers.

Participating suppliers will offer insulation measures, such as loft insulation and cavity wall insulation, with partial or complete cost subsidies. 

Co-funding will be required for eligible homeowners facing costly repairs, ensuring accessibility for those in need.

The Great British Insulation Scheme is a timely response to the escalating fuel poverty crisis, which has afflicted millions of households in the United Kingdom since 2021. National Energy Action reports that fuel poverty has increased by more than 50 per cent, leaving approximately 6.7 million households unable to afford energy costs.

Insulation measures with partial or whole cost subsidies. For the general eligible category, the homeowner may be required to fund a portion of implementing a more expensive remedy.

Since 2021, global shortages and increased prices in oil, gas, and electricity markets have caused millions of UK households to fall into fuel poverty. According to National Energy Action, 6.7 million UK households were in fuel poverty at the beginning of April 2022, an increase of more than 50% in just six months.

The British government is establishing the Great British Insulation Scheme, a new supplier duty and subsidy scheme to improve energy efficiency. A new consultation for the scheme, offers the advantages of installing solar panels.

Energy efficiency measures offer the ability to:

• Lower energy bills over the long term
• Strengthen the security and resilience of the energy system
• Ensure homes are warm and safe
• Achieve the UK government’s Net Zero goals

The scheme will work alongside existing schemes (such as ECO4, which targets low-income households, those least able to pay, and those living in fuel poverty) to install measures in as many homes as possible. 

The programme will target the least efficient households and include a ‘general eligibility group’, with an EPC of D and below, and a ‘low-income group’ targeting individuals on means-tested benefits, in the least efficient social housing, or recommended via a collaborating local authority or energy supplier and judged to be low-income or vulnerable. 

Check your EPC Rating

Energy Performance Certificates

An Energy Performance Certificate (EPC) tells you how energy-efficient a property is. It would be best if you had an EPC  in England and Wales when you’re:

• selling a property
• renting out a property
• building a new property

You must order an EPC for potential buyers and tenants before you market your property to sell or rent.

In Scotland, it is not compulsory to have an EPC rating though there is talk of legislation changing this in the future.

An EPC contains:

• information about a property’s energy use and typical energy costs
• steps to improve a property’s energy efficiency and save money

An EPC gives a property an energy efficiency rating from A (best) to G (worst) and is valid for 10 years.

Low-income housing could also provide additional heating controls where insulation measures are simultaneously installed. For the general eligible category, the homeowner may be required to fund a portion of implementing a more expensive remedy. The programme will target homeowners with low energy performance certificates (EPC) and those in lower council tax bands.

To increase the number of families that could benefit from the scheme, the Department for Energy Security and Net Zero commissioned this study to determine the extent to which owner-occupants are willing to co-fund the installation of home retrofit measures.