The three-year scheme, which will provide up to £15,000 to middle-income households, will begin in April 2023.

According to reports, Grant Shapps, the business secretary, will announce next week a plan to offer grants of up to £15,000 to middle-income households to make their homes more energy efficient.

The “eco plus” programme will begin in April and will allow middle-income people to fund home improvements such as cavity wall insulation or smart heating controls.

According to the Times, the government has set aside £1 billion for the initiative, which will target people in council tax bands A to D.

The plan is to target 70,000 homes over three years, covering 75% of the cost of any home energy efficiency upgrades.

At a time when oil and gas prices have risen as a result of Russia’s invasion of Ukraine, the push to encourage people to install upgrades in their homes is intended to drive significant cost savings.

The housing stock in the United Kingdom is the oldest and least energy efficient in Europe, and the government has been forced to intervene in the market to protect people from skyrocketing energy bills.

According to the Energy Saving Trust, installing loft insulation costs between £455 and £640, depending on the type of property, and can save a household between £330 and £590 per year (EST).

Cavity wall insulation ranges in price from £580 to £1,800 and can save between £235 and £690 per year.

Unlike the green homes grant scheme, which was axed last year and offered £5,000 or £10,000 to install insulation or low-carbon heating, the funding will be administered by energy suppliers.

The scheme is part of the chancellor’s larger ambition, announced in the autumn statement, to reduce energy consumption in buildings and industry by 15% by 2030.

“Reducing demand by this much means, in today’s prices, a £28bn saving from our national energy bill or £450 off the average household bill,” he said.

The government is expected to approve a £25 million social media and advertising campaign on how households can reduce their winter energy consumption before Christmas.

The tips will include things like turning off radiators in empty rooms, lowering the temperature of the boiler, and taking showers rather than baths.

Michael Gove, the levelling up secretary, stated that the advice would not be “nannying,” but would instead direct people to “authoritative sources of advice” on energy management.

An earlier attempt to launch a public information campaign about energy-saving measures was reportedly thwarted by Liz Truss’ administration.

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