The Government is set to propose legislation to require an estimated £910 million commitment from energy companies including, for the first time, electricity generating companies, to invest in making homes more energy efficient.

The Home Energy Saving Programme will assist to householders to make their homes more energy efficient, and gives help with fuel bills this winter for households most vulnerable to fuel poverty, including all pensioner households – through the winter fuel payments and lower energy company tariffs.

This will be in addition to the existing obligation on companies to spend £2.8 billion over the next three years helping customers save energy.  Together with the Government’s own spending programmes, this will create a £6.5 billion programme of improvement to the nation’s housing stock - the largest since the introduction of North Sea gas. The Government’s aim is the insulation of all Britain’s homes, where practical, by 2020.

Around £560 million of this £910 million will add to the existing energy efficiency programme CERT (Carbon Emissions Reduction Target) - which funds subsidised improvements such as loft and cavity wall insulation. Eleven million elderly and low income households qualify for these measures at no cost. This extra funding could benefit up to two million households.

The remaining £350 million of the £910 million from energy suppliers and electricity generators will go towards a new Community Energy Saving Programme. Throughout the country, local councils, voluntary organisations and energy companies will carry out house-to-house calls to offer help in some of the most deprived areas of the UK.

This could result in as many as 100 schemes across the country.

The government is also urging people to compare suppliers to get the best energy deals, use direct debit, and take advantage of money off deals on energy efficient products.

In addition to measures announced previously in the Budget the package also includes further, new support for those most at risk of fuel poverty, increasing Cold Weather Payments from £8.50 to £25 per week this winter.

Around 40,000 households could see their fuel bills reduce by £180 per year on average, thanks to an extra £74 million of public money over the next two years to the Government’s Warm Front scheme. This offers up to £2,700 worth of central heating and energy efficiency measures to low income and pensioner households.

This is in addition to the measures announced in the Budget, which were for households with someone over 60 will receive an extra £50 on their Winter Fuel Payment (up from £200 to £250) with an extra £100 for over-80s households (up from £300 to £400).

Around 600,000 customers’ accounts could benefit from discounted tariffs by the end of the year and around three quarters of these will be benefiting from a price freeze this winter.

'In a world where prices are likely to remain high, it’s time for all of us to get more energy efficient,” said Business Secretary, John Hutton. “Thanks to Government and energy companies working closely together, an extra £1 billion will be available to spend on measures that will bring a lifetime of savings.'

Money saving tips: the average UK household can save over £27,000 throughout the course of a lifetime and decrease their carbon footprint by making small, everyday changes to the way energy is used in the home, according to a new report. Find out how here. 

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