18 Dec 2023

CIH welcomes announcement of government funding for energy efficiency and low-carbon heating

Government has confirmed the allocation of funding for the installation of energy efficiency measures and heat pumps in domestic homes, including improving heat networks and the largest wave of the Social Housing Decarbonisation Fund to date. 

The announcement includes:

  • The allocation of £1.25 billion to the Social Housing Decarbonisation Fund to support up to 140,000 social homes to be insulated or retrofitted.
  • The Boiler Upgrade Scheme has been allocated a further £1.5 billion to support households in England and Wales to install low-carbon heat pumps.
  • A new £400 million energy efficiency grant will be launched in 2025, for households in England to make changes such as bigger radiators or better insulation.
  • The establishment of a new local authority retrofit scheme, which will be allocated £500 million to support up to 60,000 low-income and cold homes, including those off the gas grid, with measures such as insulation.
  • The Green Heat Network Fund has been allocated £485 million to help up to 60,000 homes and buildings access affordable, low carbon heating through new heat networks.
  • The Heat Network Efficiency Scheme has been allocated £45 million to improve around 100 existing heat networks.

Responding to the news, CIH's chief executive Gavin Smart CIHCM said:

“With high energy prices here to stay, improving the energy efficiency of our homes is one of the surest ways of cutting carbon, reducing fuel poverty, and improving housing quality.

"That’s why CIH has continually called for additional government investment in energy efficiency schemes, and we are delighted to see these announcements, especially the largest wave of the Social Housing Decarbonisation Fund to date. The announcements recognise the leading role that local authorities and housing associations have played in pioneering the retrofit of existing homes, enabling beneficiaries to live warmer, healthier, and happier lives. Taken together, these schemes will make a huge difference in supporting the ambitions of many housing providers and homeowners to improve the energy efficiency of their homes and transition to low-carbon heating, as well as unlocking significant amounts of private investment.

"We look forward to working with the department and our members to maximise the impact of these schemes for residents and providers alike.”

More detail on the government announcement can be found here.