The new scheme will see the government fund up to two-thirds of the cost of home improvements of over 600,000 homes, supporting over 100,000 jobs in green construction.

Tradespeople must register for TrustMark or Microgeneration Certification Scheme (MCS) accreditation to take part in the scheme, which will cover green home improvements ranging from insulation of walls, floors and roofs, to the installation of low-carbon heating, like heat pumps or solar thermal – measures that could help families save up to £600 a year on their energy bills.

The government is today setting out further details of the range of measures included and how consumers in England will be able to claim the new vouchers, which are worth up to £5,000 for homeowners. Households on low income can receive vouchers covering 100% of the cost of the improvements, up to a maximum of £10,000.

Business and Energy Secretary Alok Sharma said: 'Green home improvements will save people money on their energy bills, help to cut carbon emissions, and create new work for many thousands of builders, plumbers and other tradespeople.

'Our TrustMark scheme will guarantee that building work is completed to a high standard by accredited tradespeople, ensuring consumers are fully protected.'

TrustMark is the government-endorsed quality scheme covering work a consumer chooses to have carried out on their home. Households will be able to choose from approved tradespeople in their areas to carry out the work, but only approved and accredited installers will be able to be commissioned, ensuring high standards and consumer protection.

The Chancellor of the Exchequer, Rishi Sunak said: 'The Green Homes Grant is a vital part of our plan for jobs as we secure the UK’s economic recovery from coronavirus. This is going to be a green recovery with concern for our environment at its heart.

'It will help to protect and create jobs, while also saving people money and cutting carbon.'

The Green Homes Grants will give homeowners, including owner occupiers and social/private landlords, vouchers to install one or more of the following:

• solid wall, under-floor, cavity wall or roof insulation

• air source or ground source heat pump

• solar thermal

In addition, households can use their voucher for further energy saving measures. These include one or more of the following:

• double or triple glazing/secondary glazing, when replacing single glazing

• upgrading to energy efficient doors

• hot water tank/appliance tank thermostats/heating controls

Later this month, homeowners across England will be able to access advice and support on improving the energy efficiency of their homes from the Simple Energy Advice (SEA) service. SEA will suggest appropriate home improvements that homeowners may be able to apply for support in funding.

Households will be offered a list of approved TrustMark and MCS registered tradespeople in their local area to carry out the work. Once the works are agreed, vouchers will start to be issued from the end of September so work can commence.

For example, if a homeowner of a semi-detached or end-terrace installed cavity wall and floor insulation, costing around £4,000, the homeowner would pay just £1,320 – with the government paying £2,680. Doing so could save the owner over £200 annually on their bills and reduce their carbon footprint by cutting 700 kg of CO2 a year from their home alone.

Chief executive of the Energy Saving Trust, Mike Thornton, said: 'The Green Homes Grant is a significant investment by the government in energy efficiency which will provide long term benefits to householders and the environment by cutting fuel bills and reducing carbon emissions. It will particularly help low-income households access much-needed funds to make their homes warmer. I would really encourage homeowners to apply for the scheme.'

The funding will mean warmer homes for 600,000 households, with those on low income who are owner occupiers and in receipt of income-based or disability benefits, getting 100% subsidy up to a maximum government contribution of £10,000. As part of this package, £500 million will be earmarked specifically to support low-income, fuel poor households, including those living in rented accommodation.

Chief executive of the Federation of Master Builders, Brian Berry, said: 'The Green Homes Grant is a really welcome boost for the building industry as it recovers from the impact of COVID-19. The vouchers will be a significant benefit to households wanting to make their homes more energy efficient and reduce their energy bills, whilst providing much needed work for accredited installers at this difficult time.'

Chief executive of TrustMark, Simon Ayers, said: 'Consumer confidence is not only essential to the recovery of the UK’s economy, but also to the protection and creation of key jobs that will support the long-term delivery of quality green home improvements.

That’s why having TrustMark accredited tradespeople will provide households with the confidence they need that those working on their homes have been thoroughly vetted for technical competence, customer service and trading practices.

Heating buildings accounts for almost a fifth of UK greenhouse gas emissions and reducing carbon dioxide from homes will be essential to reaching net zero by 2050.

The government’s wider green package, announced earlier this month by the Chancellor, also includes an additional £1 billion programme to make public buildings, including schools and hospitals across the UK more energy efficient. An additional £50 million will pilot innovative approaches to retrofitting social housing at scale.

Start of a long-term plan

BEAMA said it hopes the Green Homes Grant scheme can be the start of long-term plan for high quality green refurbishment of UK homes.

It said the announcement is a welcome boost to manufacturers whose products are included, given the current economic uncertainty, and hopes that this approach can now be used as a basis for a longer-term housing refurbishment program.

BEAMA said the inclusion of heat pumps as a primary measure, and heating controls as secondary measure is welcomed. For the former technology this is evidence of the importance of a move towards low-carbon heating, for heating controls further recognition of the vital role of managing heating systems and gaining the benefits of insulation measures. We know that there are additional measures that can improve the energy efficiency of existing homes and make them ready for wider electrification and grid flexibility. We hope that Government will engage with industry at an early stage so that these can be included in future incentive schemes.

The group added that it was pleased to see that measures installed under this scheme will be installed by Trustmark registered installers as it believes this is the correct way to take the overall energy efficiency industry forward and it was essential that the householders receiving measures have the best possible experience of the installation, that they have confidence in the work, and receive the full benefit of potential energy and cost savings. 

Howard Porter, BEAMA chief executive, said: “As the former chair of the Implementation Board of Each Home Counts, I welcome today’s announcement as an endorsement of the collaboration between industry, government and consumer groups to deliver the quality systems now managed by Trustmark. BEAMA members will continue to provide quality products for UK householders, and we encourage all installers to follow the Trustmark quality standards.”