It is among the energy efficiency schemes to be funded from a £6 billion package announced in 2022’s autumn statement.
The funding covers the period 2025 to 2028, with ministers now confirming which new and existing schemes will benefit.
The boiler upgrade scheme in England and Wales, designed to encourage a shift to heat pumps, will benefit, with £1.25 billion also going to a social housing decarbonisation fund.
A new local authority retrofit scheme for low-income homes will also open in 2025, backed by £500 million. A new £400 million energy efficiency grant will also go to households, again from 2025, to fund bigger radiators and better insultation.
Energy Secretary Claire Coutinho said: “Cutting energy bills is my top priority. Today’s funding will help those who are most in need and keep around a million more families warm during winter.”
Mike Thornton, chief executive at the Energy Saving Trust, welcomed the funding for the schemes.
He said: “We look forward to learning more about the detail including plans for rollout and engagement, as well as how we can help the UK Government to ensure they are as successful as possible in supporting people to get the right measures into their homes.”
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