Homeowners will be able to spend the cash on loft, wall and floor insulation, eco-friendly boilers, heat pumps, double or triple-glazed windows, low-energy lighting and energy-efficient doors.
Thousands of households are to be handed vouchers for home improvements as part of Chancellor Rishi Sunak’s pledge to slash energy bills and make homes greener.
Under the Green Homes Grant, families will receive vouchers of up to £5,000 for energy-saving changes with the poorest getting up to £10,000.
This is equivalent to £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household.
The plan aims to create tens of thousands of new jobs while helping the UK meet its 2050 target of achieving net zero carbon emissions, the Treasury said.
“From September, homeowners will be able to apply for loans to improve their homes,” the Chancellor announced during the mini-Budget.
“This will cover two thirds of the cost – equivalent to 5,000 per household or 10,000 for low income households. This will also create thousands more jobs.”
The Green Homes Grant scheme will see households receive vouchers worth up to £5,000 to use on environmentally-friendly additions such as insulation, low-energy lighting, double glazing and energy-efficient doors.
The way it will work, according to the Treasury, is that the Government will pay at least two-thirds of the cost of home improvements that save energy, up to that value.
The grant could be as much as £10,000 for the poorest households, and will cover the cost of the renovations in full.
The programme could save families up to £600 a year on energy bills, according to Treasury estimates.
Sunak’s announcement will also include a £1billion programme to transform schools, hospitals and other public buildings so they are greener and more energy efficient.