The Green Homes Grant - A worthwhile yet confusing scheme explained

by Luke Betts

The foreshadowing of an economic apocalypse post-lockdown is actually proving to be more of a benefit than a cost to the British public. Finally updated for August – The Chancellor has detailed the anticipated eligibility criteria for his “green recovery” home improvement plan, projected to reach up to 600,000 homes across England.

£2 billion has been put aside for this scheme, which is inviting homeowners and landlords to improve their properties’ energy efficiency with ‘vouchers’ for specific home improvements up to the sum of £5,000 (up to £10,000 for lower income households).

The easiest way to explain this scheme is that it consists of ‘primary’ and ‘secondary’ home improvements. The government will cover around 66% of the cost of primary upgrades, which subsequently allows access to the equivalent sum towards secondary upgrades.

Primary measures are:

·      Insulation (be it cavity wall, floor, loft or roof)

·      Low-carbon heating (solar systems and air/ground source heat pumps

Secondary measures are:

·      Double or triple glazing (only when upgrading from single glazing)

·      Secondary glazing (for conservation areas)

·      More efficient doors (replacements for doors from 2002 or earlier)

·      Draught-proofing

·      Upgraded hot water tanks, thermostats or smart heating controls

The government provided its own example for a better understanding: a homeowner installing cavity wall and floor insulation costing £4,000 would only pay about £1,320, with £2,680 being covered through a voucher. This therefore would allow this homeowner to an additional £2,320 (totalling £5,000) towards any of the secondary home improvements.

To reiterate the two most important stipulations in this scheme:

1.      A primary measure must be installed to be eligible for savings on a secondary measure

2.      Any voucher given towards secondary measures will be equal to the primary sum invested by the government (less if limit is reached)

As mentioned earlier lower income households can apply for a grant up to £10,000, this specifies anyone who claims one or more income-based or disability benefits. The scheme is designed to help those who fall into this category most – As 100% of all costs are paid by the government. Though renters on benefits cannot claim.

Still following? Good. Now before you go ordering your solar panels there’s more you need to know. Park homes are included but ALL new-build properties (domestic and non-domestic) aren’t eligible. Also if you think this is a good opportunity to update your older double-glazing or replace aged loft insulation, think again. Under the scheme you can only upgrade from single glazing or ‘top up’ original insulation.

The main aim of this exercise is to ultimately keep the plates of the economy spinning by encouraging spending and creating 140,000 “green jobs”. But Rishi’s predicted reduction of carbon emissions by “over half a megaton a year” is definitely a big green tick for the scheme, equivalent to “taking 270,000 cars off the road”.

And not forgetting the most obvious benefit of having a better energy rated home, saving hundreds a year on energy bills!

The Green Home vouchers are available from September this year up until March 2021.
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