The chancellor, Rishi Sunak has announced a new scheme offering England’s homeowners up to £5,000 in vouchers to fund energy-efficient improvements.

The £2 billion Green Homes Grant scheme was set out in the chancellor’s summer statement on Wednesday 8 July. It is part of a package of measures aimed at kickstarting the economy following the coronavirus pandemic.

The money will pay for cavity wall and floor insulation in an effort to cut carbon emissions, while helping to sustain thousands of jobs.

From September, homeowners will be able to apply online to join the scheme and find details of accredited local suppliers. Once a customer has approved a quote from the supplier, a voucher will be issued, with the government picking up at least two-thirds of the bill – or all of it in the case of the poorest households.

Mr Sunak said: “As Britain recovers from the outbreak, it’s vital we do everything in our power to support and protect livelihoods across the nation.”

The grants are part of a wider £3 billion package of green measures aimed at helping the UK reach net zero carbon emissions by 2050. Other moves including better insulation for public buildings and a £50 million fund to retrofit improvements to social housing properties.

Improved insulation could also save people around £600 a year on energy bills. Business Secretary, Alok Sharma said: “What [the scheme] ultimately means is lower bills for households, hundreds of pounds off energy bills every year. It’s supporting jobs and is very good news for the environment.”

While broadly supporting the scheme, Labour have called for the government to do more for people in rented homes.

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