The government has unveiled a Warm Homes: Local Grant to help low-income homeowners and private renters with energy performance upgrades and cleaner heating.
This will replace the Local Authority Deliver scheme and will start in 2025.
The expression of interest window will be open to local authorities who wish to participate in October.
The grant will be available to low-income private tenants with the support of their landlords.
This will apply to households in England that are low income, have an Energy Performance Certificate (EPC) rating of between D and G, and are owned by an owner-occupier or private landlord.
Local authorities will provide energy performance upgrades and low-carbon heating such as insulation, solar panels and an air source heat pump where suitable.
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Guidance published with the announcement stated that the government expected the scheme to run for 3-5 years and the income threshold will be £36,000 or less.
People in receipt of certain benefits may also be eligible and self-declaration will not be accepted; local authorities will need to check a household’s eligibility.
New-build and self-built homes that have not been previously occupied will not be accepted.
There will be separate cost caps of £15,000 each for upgrades to improve a home’s energy performance and low-carbon heating measures, totalling £30,000 per home.
Private landlords may receive one home that is fully funded by the scheme, and they will need to contribute 50% toward the cost of any additional properties that need upgrading.
Tenants will not be required or expected to contribute towards any expenses.
The government will announce the final details of the Warm Homes Plan in the Spending Review, including how much funding will be available.
Minimum energy-efficiency standards
The government also announced it would consult on proposals to raise minimum energy-efficiency standards for private and social rented homes by 2030.
Described by the government as the “biggest potential boost to home energy standards in history”, it said intervention was “well overdue” regarding improving living standards and ensuring warmer, cheaper homes that are free from damp and mould.
The Energy Secretary Ed Miliband said he would “reverse these failures of the past and stand by tenants”, with a commitment to consult on a minimum EPC rating of at least a C for all rental homes by 2030.
Currently, privately rented homes can be let out if they are a minimum of an EPC rating of E, while social rented homes have no minimum standard.
It said this would lift more than one million homes out of fuel poverty.
