Grant Shapps the Business Secretary will draw up plans whereby middle incomes will receive energy subsidies. The grants, worth up to £15,000, would be used to make their homes more energy efficient, including through extra insulation.
The company secretary will announce plans next week that will help households insulate their homes and install smart heating units such as advanced thermostats.
Home insulation will make a big difference to households’ annual energy bills, as homes retain heat more effectively.
The £1bn scheme is called the ‘eco plus’ fund, which is aimed at those financially able to contribute some money to energy efficiency changes.
The plan differs from other energy grants offered to low-income households that cannot help with financing.
The £1 billion earmarked for funding for the next three years has already been drawn from existing budgets.
According to The timesthe scheme will help more than 70,000 households and ensure that households save hundreds of pounds every year.
Insulating the attic space alone could potentially save £640 a year and with an installation cost of £1,100 it will pay for itself in two years.
Under the plan, the government will fund 75 percent of the cost of any upgrades and ministers will be sent to decide whether to make the money available to those in municipal tax brackets A to D.
READ MORE: Jeremy Hunt urges households to reduce energy use
In another attempt by the government to tackle energy consumption during the energy crisis, the government will launch an information campaign.
The campaign will cost £25 million to encourage the public to use less energy as chancellor Jeremy Hunt called it a “national mission”.
The chancellor added that “ultimately everyone will have to take responsibility for their energy bills”.