Families in badly insulated homes set to pay £340 more in gas bills

 As the new energy price cap comes in, people who live in badly insulated homes will be facing gas bills around 50% higher than homes who have met government energy performance targets, analysis from the Energy and Climate Change Intelligence Unit (ECIU) finds.

Those set to be paying around £340 more are living in some of the leakiest homes in England, which means the heat produced by gas boilers quickly escapes the building.

ECIU energy analyst Jess Ralston said: “For millions living in cold, leaky homes, insulation is crucial for lowering bills.”

Last September, Prime Minister Rishi Sunak scrapped plans that would have forced private landlords to ensure their properties had a minimum level of insulation.

But the government did announce that £75 million will support some of the lowest income households to warm their homes and save on energy bills

The free energy efficiency upgrades are taking place in thousands of social homes across England and the money will spent on heat pumps, double glazing and insulation.

It’s estimated that this will support some of the lowest income households, and that by warming their homes like this, they could save as much as £400 a year on energy bills.

The funding will be offered to 42 councils and housing associations to help them co-fund installations in up to 8,000 homes. This is also intended to support more than 1,300 jobs in the UK’s retrofit industry.

Energy Secretary Claire Coutinho said: “We want to support hard-working families to make changes, rather than burdening them with unnecessary costs. The funding announced today will give housing associations the certainty and confidence they need to plan and deliver more retrofit projects, tackle fuel poverty, and improve their residents’ homes.” 

How do I insulate my home?

If you get income-related benefits or you are living on a low income, you may be entitled to a grant from your local authority to fund energy-efficient upgrades to your home.

Similarly, you can apply for support from the Great British Insulation Scheme. If your home  has an energy performance certificate (EPC) of D to G –( check your EPC) or is in Council Tax bands A-D in England or A-E in Scotland or Wales, you could be eligible for support.

You can be a homeowner, landlord or tenant (either renting privately or from a housing association). If you’re a tenant, speak to your landlord before you apply because you’ll need their permission before any insulation can be installed.

I’m struggling with energy bills – what should I do?

The first thing you should do if you’re struggling to pay your energy bill is get in touch with your supplier. Some providers offer grants to help customers in need. Find out more in our guide on financial help from your energy supplier. You can also check whether you’re getting all the benefits you’re entitled to, by using our free benefits calculator.

There may be a few things you can try at home that could help cut costs. Find out how to save energy.

And if your income is no longer covering your bills, find out for free about the solutions available to help people struggling with debt. You may be surprised at just how much help is out there.