The Green Homes Grant 2020
The Green Homes Grant — laying the foundations for a green recovery was one of the major updates in the government’s Summer Statement introduced by chancellor Rishi Sunak. Unsurprisingly, it was perhaps overshadowed by the Stamp Duty Holiday!
The Green Homes Grant will provide vouchers to help homeowners make their property more energy-efficient. When launched, the government will pay two-thirds of energy-efficient home improvements up to £5,000.
The announcement followed a dire Spring for the UK economy, which contracted by 25% due to the Covid-19 pandemic. The scheme is expected to create thousands of new jobs, and the government believes it will help the UK meet its 2020 target of achieving net-zero carbon emissions.
So, what is the Green Homes Grant?
The grant will provide £2bn for projects such as ensuring houses are properly insulated. This is part of a wider £3bn plan to cut carbon emissions. They will be provided as vouchers which can be used towards making energy-efficient improvements to residential homes.
The Treasury claims that the improvements made using these vouchers could save families up to £300 a year on energy bills.
How does the Green Homes Grant work?
To get a voucher, homeowners will need to make an online application detailing the energy efficiency measures they hope to make. These details will then be forwarded to accredited local suppliers. Once one of the suppliers has issued a quote, and the work has been approved, the government will issue the voucher towards the work.
Who can apply for the vouchers?
Homeowners and landlords would be eligible. The chancellor confirmed that up to 650,000 homes will be covered by the grant. Further clarification will be provided of course.
How much are the vouchers worth?
The government will pay at least two-thirds of the cost of home improvements that save energy, up to £5,000. For example, if you install a new, more energy-efficient boiler installed for £2,000, the voucher would pay £1,333 and the homeowner would pay £666.
Poorest households will be eligible to receive up to £10,000 towards improvements. These homeowners will not have to contribute anything to the cost. Criteria and qualification to be confirmed.
What doe the do vouchers cover?
Households will be able to spend these vouchers on a variety of improvements, including:
Loft and floor insulation
New, more efficient boilers
Double or triple glazed windows
When will the grant be available?
Applications will open in early September 2020.
How will I claim Grant Vouchers?
From September, it will be possible to apply for the grant online. We'll be updating this page as further details become available.
What else should I consider?
While the vouchers will provide a much-needed boost, especially for low-income households, the £5,000 cap - or £10,000 for the poorest homeowners may not be enough for more extensive energy efficiency improvements to be completed.
For example, external wall insulation on a three-bedroom house is likely to cost in the region of £10,000, while a larger detached home will cost £8,000-£15,000. Vouchers up to the value of £5,000 will not cover two-thirds of the costs in these instances.
There are of course more details to follow, we'll update this blog and include the link for applying as soon s possible. Alternatively, click here for the government website.
Wed 22 Jul 2020