The Department for Business, Energy & Industrial Strategy (BEIS) has announced the first tranche of funding under the £950million Home Upgrade Grant (HUG), with £67m going to local authorities across England to improve low-income, off-gas grid households.
Grants will pay for energy efficiency measures such as wall and roof insulation as well as new low carbon heating systems, thermostats and room heating controls. Works are expected to be completed by the end of March 2023.
This first round of funding will go to 22 local authorities in England. The worst performing homes, ranging from Energy Performance Certificate (EPC) Bands ‘D’ to’ G’, are eligible to receive efficiency upgrades under HUG.
BEIS says up to 4300 low-income homes will benefit from this round of funding, and it expects them to see their fuel bills cut by up to £200 a year.
The money will help people who are most vulnerable to fuel poverty, who are on low incomes, and are living in off-gas grid, privately-owned homes – both rented and owner-occupied – with upgrades helping to reduce their bills and make their homes warmer.
A statement from BEIS said: “The funding is part of the £6.6 billion the government is investing this parliament to decarbonise buildings, of which over £2 billion is aimed specifically at lower-income households. This will play a significant role in helping the UK to reach its world-leading climate change ambitions and, with upgraded insulation making it easier to keep homes warm, it will save people money on their energy bills.”

