The government has announced plans for a £1 billion scheme – called ECO+ – which will see hundreds of thousands of homes receive new home insulation.

This will mostly by those homes in the least energy efficient homes in the lower council tax bands.

And in a sharp reversal of a decision by humiliated former Prime Minister Liz Truss, there will after all be a £18m campaign giving the public advice on how they can save hundreds on their energy bills “without sacrificing comfort”.

In detail the ECO+ scheme will extend support to those who do not currently benefit from any other government support to upgrade their homes. Joining the existing £6.6 billion Help to Heat energy schemes this new £1 billion funding will – according to the government – ensure hundreds of thousands more households benefit from new home insulation.

Around 80 per cent of the £1 billion funding will be made available for those households who are in some of the least energy-efficient homes in the country – that is, those with an EPC rating of D or below – and in the lower council tax bands. Around a fifth of the fund will also be targeted to those who are the most vulnerable, including those on means tested benefits or in fuel poverty.

On top of this, the government says it will significantly expand its Help for Households campaign to help customers to reduce their own household energy usage and bills, while also giving vulnerable groups the right information for doing this without harming their health.

Business and Energy Secretary Grant Shapps says: “The government put immediate help in place to support households in the wake of global energy price rises caused by Putin’s illegal march on Ukraine. Today, we launch the first of many measures to ensure the British public are never put in this position again as we work towards an energy independent future.

“A new ECO scheme will enable thousands more to insulate their homes, protecting the pounds in their pockets, and creating jobs across the country. And in the short term, our new public information campaign will also give people the tools they need to reduce their energy use while keeping warm this winter.”

And Chancellor of the Exchequer Jeremy Hunt adds: “With Putin’s war driving up gas prices worldwide, I know many families are feeling worried about their energy bills this winter and beyond. Our extensive energy support package is insulating people from the worst of this crisis, but we’re also supporting people to permanently cut their costs.

“In the longer term, we need to make Britain more energy independent by generating more clean, affordable, home-grown power, but we also need more efficient homes and buildings. Our new ECO+ scheme will help hundreds of thousands of people across the UK to better insulate their homes to reduce consumption, with the added benefit of saving families hundreds of pounds each year.”

Since it was launched in January 2013 the Energy Company Obligation schemes – known as ECO – has apparently delivered 3.5m energy-efficiency measures in around 2.4m homes. The ECO+ scheme, which will run from spring 2023 for up to three years, extends that support even further and will see hundreds of thousands of households receive new insulation, saving them around £310 a year according to government figures.

By rolling out predominantly low-cost insulation measures such as loft insulation and cavity wall insulation, the ECO+ scheme will support the government’s new ambition to reduce the UK’s final energy consumption from buildings and industry by 15 per cent by 2030. T

A statement from Shapps’ Business, Energy and Industrial Strategy department says that Improving the energy efficiency of UK homes is a crucial part of the government’s strategy. 

It claims that thanks to government support so far, the number of homes with an energy efficiency rating of C or above is at 46 per cent and rising, up from 13 per cent in 2010. 

The £18m public awareness campaign – originally scrapped by Liz Truss in September – will complement existing government support schemes. such as the Energy Price Guarantee and the Energy Bills Support Scheme and, the government claims, “the information provided will save households money.”