According to new research from Pay4Later, a UK provider of point of sale credit, just 21% of those people planning to make energy efficient changes to their homes over the next 12 months are considering taking advantage of government subsidies in this area.

Some 37% are aware of government subsidies but won’t use them, while 18% do not know they exist.

Marketing manager at Pay4Later, John Wark, said: 'We believe that the low take-up of these government subsidies is down to a lack of awareness, the application process sometimes being too complicated and taking too long, and that many don’t want to pay for a survey to see if they qualify (the cost of this can be over £100). We also believe that people are increasingly waking up to the fact that they may find a more competitive financial deal elsewhere.'

He added: 'The amount of finance we have provided for energy efficiency home improvements increased by 83% between April 2014 and April 2015.'

Pay4Later’s research reveals that 58% of people are planning to make changes to their homes over the next 12 months to improve energy efficiency levels. Of these people, around 46% intend to spend over £1,000. Just over one in five (22%) will spend more than £5,000, and 6% will spend over £10,000.

Given the huge expenditure here, 39% intend to finance some or all of this through loans. Of these people, just over one in three will borrow up to £2,500, and 17% will borrow between £2,500 and £5,000. 8.6% - or 1.1 million people will borrow over £10,000.

In terms of the energy efficiency home improvements people plan to make, 35% intend to improve their property’s draught proofing, and 31% are looking to enhance insulation levels in their homes. Some 30% are looking to replace windows and doors.

John Wark added: 'Despite energy costs coming down, the average annual bill for a dual fuel customer is still £1,265. This coupled with the fact that many households have felt a financial squeeze in recent years, means making energy saving improvements to your home can be one of the best ways to cut your annual cost of living.'

Pay4Later offers energy efficiency suppliers and installers instant-decision consumer finance starting at 0% APR, for relevant home improvements via its green energy finance platform.