The business secretary, Grant Shapps, will announce a plan next week to offer grants of up to £15,000 to middle-income households to make homes more energy efficient, according to reports.
The scheme, called “eco plus”, runs from April and is aimed at middle earners to enable them to finance work on their homes, such as installing cavity wall insulation or smart heating controls.
The government has set aside 1 billion pounds for the initiative, which will target people in council tax bands A to D, according to the Times.
The intention is to target 70,000 homes over three years, covering 75% of the cost of any energy efficiency improvement to people’s homes.
The push to encourage people to install upgrades in their homes is set to create significant cost savings at a time when oil and gas prices have risen as a result of Russia’s invasion of Ukraine.
Britain’s housing stock is the oldest and least energy efficient in Europe and the government has been forced to intervene in the market to shield people from skyrocketing energy bills.
Installation of ceiling insulation costing between £455 and £640, depending on the property typeand can save a household between £330 and £590 a year, according to the Energy Saving Trust (EST).
Cavity wall insulation costs between £580 and £1,800, and can save between £235 and £690 a year.
The financing will be administered by energy suppliers, in contrast to the green housing support scheme that was discontinued last year and which offered £5,000 or £10,000 to install insulation or low-carbon heating.
The scheme is part of a wider ambition announced by the Chancellor, Jeremy Hunt, in the Autumn Statement to reduce energy use from buildings and industry by 15% by 2030.
“Reducing demand by this much means, in today’s prices, a saving of £28 billion from our national energy bill, or £450 off the average household bill,” he said.
The government is expected to approve a £25 million pre-Christmas social media and advertising campaign on how households can reduce their winter energy consumption.
The advice will include a number of tips, such as turning off radiators in empty rooms, lowering the temperature of the boiler and taking showers rather than baths.
The development secretary, Michael Gove, said the advice would not be “nannying” but would point people towards “authoritative sources of advice” on managing energy use.
An earlier attempt to introduce a public information campaign on energy saving measures was reportedly blocked by Liz Truss’s administration.