UPDATE: “Boilers not to be included” says Martin Lewis (MoneySavingExpert)
Martin Lewis has reported that the new Green Homes Grant Scheme will not be able to be used for the purchase of new boilers. You may still be entitled to a boiler grant (benefits related), apply here. If you do not claim benefits, considering buying your new boiler online and paying monthly via a website such as Heatable.co.uk.
Original article below
The UK government has just announced the Green Homes Grant scheme worth a mammoth £2billion, which is part of a larger green investment package worth £3billion.
The new grant has been made available to help homeowners and landlords pay for green home improvements, which includes upgrading old boilers to new, more energy efficient models.
Green Homes Grant – How Does it Work?
From September 2020 both homeowners and landlords in England will be able to apply for a grant worth up to £5,000, and £10,000 for the most deprived households.
To receive the grant, homeowners will need to apply online and will be directed to approved local suppliers who will provide a quote. Once work has been agreed upon, you will receive a voucher to cover the Government’s portion of the cost.
Low income households will not be expected to contribute anything to the cost and may be entitled to green home improvements up to the cost of £10,000.
How Much is the Grant?
The grant aims to cover the costs of 66% (two-thirds) of any work completed that meets the requirements. For instance, for the installation of a new boiler costing £2,000, you could potentially expect to receive a £1,333 voucher to help towards the costs.
Grants for a New Boiler
The purpose of the Green Homes Grant scheme is to help homeowners and landlords make their homes more energy efficient. This means that any work that helps to achieve this is approved for the new grant.
This includes home improvements such as the installation of new windows, insulation and the replacement of old, inefficient boilers.
New boiler models are much more efficient than those of yesteryear, being able to do their job using less energy and releasing less harmful emissions into the environment.
As Power to Switch highlights, if your boiler is more than 6 years old – and if older than this, is worth replacing with a newer model.
Newer models are 95% efficient, while older models are typically between 60% -70% efficient, helping you to make your money go further and reduce harm to the environment.
What is the Purpose of the Grant?
The government has stated that this new scheme aims to help stimulate the economy while at the same time, helping to make 650,000 homes more energy efficient. This is estimated to help the average home save £300 a year on bills.
This is also in line with a legally agreed upon target to cut greenhouse gas emissions to net zero by 2050.
What about Renters?
Currently, the announcements made by the Government about the green grant have stated that it will only be available to homeowners and landlords.
The Government opposition has pointed out this discrepancy in the scheme, highlighting that it will mean an estimated one third of the population will not be able to benefit from the scheme.