Scheme set to continue for another year but funding to be slashed by about £1.4bn
Update Thu 4 Mar: Despite rumours that the scheme could be pulled altogether at the end of the month, the Government has confirmed that funding for the scheme will remain in place for 2021/2022.
However, it's set be slashed massively, after it was revealed that the original £2 billion in funding – which it was assumed would be available until the end of the scheme – is only for the current tax year.
Only £320 million is set aside for the new tax year, so while the scheme doesn't end until 31 March 2022, if it's something you are interested in, it's worth checking it out as soon as possible.
How the Green Homes Grant works in a nutshell
The Green Homes Grant gives homeowners in England vouchers to help cover the cost of energy efficiency improvements to their home – such as low-carbon heating systems, insulation or double glazing to replace single glazing.
Martin has neatly summarised the scheme in this video, courtesy of ITV's The Martin Lewis Money Show, which aired on Thursday 1 October 2020:
For most, the vouchers will be worth about two-thirds of the cost of the energy-efficient improvements, up to a maximum of £5,000 per household.
Most will still have to pay something towards it
As an example, if you install cavity wall and floor insulation costing £4,000, you'd only pay about £1,320, with the Government contributing the remaining £2,680.
However, if you're on a low income or certain benefits, you can get vouchers of up to £10,000 to cover the entire cost of installing the measures.
It ends on 31 March 2022, but there is a limited pot of cash – so don't wait The scheme ends on 31 March 2022 – extended from its original end date by a year – but while £2 billion was originally set aside, only £320 million will be available during the 2021/22 tax year, which starts in April.
So while you no longer need to rush to get in before the deadline, to avoid missing out, you may want to apply as soon as possible.
Important: You can't just pick and choose which improvements you want, there are restrictions. See the list of primary improvements you need to go for before you can get funding.
This article was originally published on the Money Saving Expert website on Thursday 4th March 2021.