Homeowners and residential landlords in England can apply for a grant of up to £5,000 (or £10,000 if they are owner occupiers on a low income) towards the cost of installing energy efficient and low-carbon heating improvements to homes.

The rest of the cost has to be funded by savings or by borrowing. The borrowing will typically take the form of a further advance added to the existing mortgage or some form of second charge lending.

This means mortgage lenders are potentially an important component in the scheme.

Since mortgage advisers may be involved it is desirable that they are familiar with the scheme, how it works and some of the current problems with it.

The scheme includes potential improvements which can save up to £600 a year on heating bills but it is important all the correct steps are taken to secure the grant.

The government will provide a voucher that covers up to two-thirds of the cost of qualifying improvements.

The maximum value of the voucher is normally £,.000 but if a member of the household is on a low income and receives one of the qualifying benefits a voucher up to £10,000 and 100% of the cost may be available.

Landlords cannot apply for the low income part of the scheme. The scheme only applies to England.

What the voucher covers

Vouchers must be used to install at least one primary home insulation or low carbon measure. Over and above this with a matching amount the voucher can then be used to fund secondary measures.

The primary insulation measures are solid wall or cavity wall insulation, floor insulation, loft insulation and insulation to flat roofs, rooms in roofs and park homes. The primary low carbon heating systems are biomass boilers, air source heat pumps, ground source heat pumps and solar thermal.

Having established that at least one primary measure is included the potential secondary measures may include draught proofing, double/triple glazing where replacing single glazing, secondary glazing, energy-efficient replacement doors, heating system controls and hot water tank thermostats and insulation.

The next steps

Applicants must check their eligibility and confirm what energy efficiency or low carbon improvements may be suitable for their home.

They must then find a certified installer in the locality who is able to carry out the work. Then apply for the voucher. More information about how to apply for the voucher is available on GOV.UK.

Following the announcement of the government’s ten-point plan for green initiatives the scheme has been extended by one year and applicants must now redeem their vouchers and ensure that improvements are completed by 31 March 2022.

Problems

The Green Homes Grant was designed to create skilled jobs and cut household emissions with a £2 billion programme and a target of helping 600,000 homes become more energy efficient by March 2021.

This target has not been met. Finding contractors to complete the work has been a problem. Contractors must be accredited against both TrustMark and Publicly Available Specification (PAS) standards. Very few general builders are PAS accredited.

The government says that there are 1,200 accredited suppliers registered with TrustMark with more being added all the time. However in a survey by the Environmental Audit Committee 86% of people rated their experience of the grant system poor or very poor.

Many applicants have complained about the complexity of the voucher application system and delays. The pandemic and a succession of lockdowns have compounded the problem.

The work cannot be started until the voucher is issued. Applicants who jump the gun and begin work before receiving the voucher will lose the grant.

Currently there is no pressure for the system to be scrapped. Insulation specialists and heating contractors have campaigned for years for a government subsidy programme to inject demand into their sector.

Extending the deadline to March 2022 may result in more applications for both grant vouchers and associated mortgage lending resulting in a reduced carbon footprint and some warmer homes.

Peter Glover is a surveyor and author of ‘Building Surveys’ and ‘Buying a House or Flat’