The Green Homes Grant, to be announced by the Chancellor of the Exchequer this week, will give hundreds of thousands of homeowners vouchers of up to £5,000 for energy-saving home improvements, a move which the Treasury hopes will help to support more than 100,000 jobs in the industry.
Rishi Sunak is due to set out a £2bn grant scheme in England for projects such as insulation as part of a wider £3bn plan to cut carbon emissions.
Under the Green Homes Grant, the government will pay at least two-thirds of the cost of home improvements that save energy, the Treasury said.
For example, a homeowner of a semi-detached or end-of-terrace house could install cavity wall and floor insulation for about £4,000 – the homeowner would pay £1,320 while the government would contribute £2,680.
The scheme will launch in September, with online applications for recommended energy efficiency measures, along with details of accredited local suppliers. Once one of these suppliers has provided a quote and the work is approved, the voucher is issued.