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Everything you need to know about the Green Homes Grant

Everything you need to know about the Green Homes Grant 

Earlier this month, Chancellor Rishi Sunak announced the new Green Homes Grant scheme which will be officially launched in September. The Green Homes Grant scheme will see eligible home owners be issued with a voucher up to £5,000 to help pay for environmentally friendly home improvements, such as wall, loft and floor insulation and double glazing.

The Government will put aside £2 billion for green home upgrades. The scheme is designed to help home owners and promote energy efficiency whilst helping boost the economy by creating jobs during the pandemic.

At the moment there is relatively little information about the scheme, so in this article we look through what we know so far.


How will the Green Home Grant work?

Once the scheme is officially launched in September, home owners will be able to apply for a voucher up to £5,000 for energy efficient home improvements. They will then be able to use this voucher to pay for some, and in some cases all, the works required.

The Green Homes Grant only applies to England, so home owners inScotland, Wales or Northern Ireland won’t benefit from the scheme.


What will the Green Home vouchers cover?

The Government haven’t released a full list of items which you can spend the voucher on yet so we’re unable to detail exactly what is included. During the initial announcement, the Treasury said the vouchers can pay for “improvements such as loft, wall and floor insulation”, the Business Secretary Alok Sharma also indicated that double glazing will also be included.


How much will the Green Home vouchers be worth?

The vouchers can be up to a maximum value of £5,000. However, the vouchers are expected to be the value of approximately two-thirds of the work, up to a maximum of £5,000.

The Treasury gave an example of a home owner installing cavity wall and floor insulation, at a cost of £4,000. In this case, the home owner would pay around £1,320 with the Government paying the remaining £2,680 through the Green Home voucher scheme.

Anyone on a low income will be able to apply for the Government to pay for the full works and the voucher could increase up to £10,000.


Who can apply for the Green Home vouchers?

We are still waiting for confirmation on exactly who will be eligible for the grant, however, the Chancellor gave the impression in his speech the Green Home vouchers would be open for all home owners and landlords at any income level.

The Treasury has said they hope the Green Home scheme will help pay for improvements in over 600,000 homes, so the vouchers should be widely available.

For Landlords with properties below the required energy efficiency rating of E, could hugely beenfit from this scheme by bringing their rental properties back to a letable energy efficiency rating, opposed to selling it on and reducing their portfolio.

The higher voucher level of £10,000 will be available for those on lower income,though the threshold has yet to be confirmed.


Applying for a Green Home voucher

The vouchers will be applied for online but there is very little information of exactly what the application will entail at the moment,

It is believed that following the announcement of the measures which the vouchers can be used for in September, along with recommended accredited suppliers, a home owner can request a qoute for the works they require and supply this as part of the application. Then, if approved, a voucher will be issued. There is no information on how long it could take for an application to be approved and a voucher supplied, yet.


Which firms will I be able to use?

The Government has said the vouchers will be able to be spent with ‘local accredited suppliers’, but is yet to release a list of those suppliers or what the criteria might be to become one of those firms.

Further information on this is expected to be released in September prior to the vouchers being launched.

As it stands, we are eagerly awaiting more information and will update this article once it has been released.


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