Government announces Great British Insulation Scheme extending grants to council tax bands A-D

The government announced on 30 March 2023 that an extra 300,000 homes could receive financial support for insulation under a rebranded scheme, the Great British Insulation Scheme¹. The scheme is the new name and model for the ECO scheme, which has already been funding insulation for inefficient homes, predominantly for those receiving means-tested benefits¹.

Unlike the previous ECO scheme, households in council tax bands A to D will be eligible¹. Up to 80% of people whose homes are in band A to D will qualify, according to the government, which is 300,000 more than under the present scheme¹. The scheme will begin in spring and run until March 2026¹. It targets two groups:

Suppliers must deliver at least 20% of their annual targets to households in the low-income group¹. Improvements could include loft insulation and cavity wall insulation, which the government says could save households £300 to £400 per year on energy bills¹. Eligibility will be more restricted for people who rent privately or live in social housing¹. Households will be able to apply for the scheme themselves from this summer, when a portal launches on gov.uk¹. The government will put legislation together in the summer to bring its plans into action, but energy suppliers should be able to start helping households before then¹.

Alongside the insulation scheme, the government said the Boiler Upgrade Scheme, which gives a grant of up to £5,000 towards buying a heat pump, will be extended until 2028¹. It is also investing £30m to try to boost the manufacture and supply of heat pumps in the UK¹. Other announcements included a plan for tens of thousands of new electric vehicle chargers under the Local Electric Vehicle Infrastructure fund and the On-Street Residential Chargepoint Scheme, and a consultation on plans that car and van manufacturers must sell a higher percentage of zero-emission vehicles from 2024¹. Further measures included a £160m fund to support floating offshore wind, a £240m fund for new green hydrogen projects, a £205m budget for the fifth round of Contracts for Difference, and a £165m second round of the Advanced Fuels Fund for sustainable aviation fuels¹. The government said it will set out plans to make electricity bills cheaper and speed up electrification for homes and businesses in the next year, with little detail beyond a commitment to "rebalance gas and electricity costs in household bills"; electricity is currently around three times more expensive per unit than gas¹.

Why it matters for households

Households in council tax bands A to D in England, and A to E in Scotland, with an EPC rating of D to G fall into the general group, and those on means-tested benefits or in the least energy-efficient social housing fall into the low-income group¹. The change extends eligibility beyond the previous ECO scheme, which focused predominantly on people receiving means-tested benefits¹. The scheme runs until March 2026, and applications through a gov.uk portal open in the summer of 2023¹. The government says the improvements could save £300 to £400 per year on energy bills¹. Private renters and social housing tenants face more restricted eligibility¹. The Boiler Upgrade Scheme grant of up to £5,000 towards a heat pump continues until 2028¹.

What happens next

The scheme begins in spring 2023 and runs until March 2026¹. A gov.uk application portal launches in the summer of 2023, and the government will put legislation together in the summer, though suppliers should be able to start helping households before then¹. The government will set out plans to make electricity bills cheaper and speed up electrification in the next year¹. A consultation on requiring car and van manufacturers to sell a higher percentage of zero-emission vehicles from 2024 has been announced¹.