Nick Clegg

The Deputy Prime Minister, Nick Clegg, has announced that at least £540 million of the government’s £1.3bn per year home energy efficiency programme will be targeted at helping the poorest.

In his speech, Nick Clegg said: “We will be requiring the energy companies to provide an estimated £1.3bn a year of support for energy efficiency in our homes with at least £540m to fund energy saving improvements in the worst off homes.

“It is shameful that the UK still has so many families unable to heat their homes. By delivering lasting improvements, each year this money will help 180,000 of the poorest households make their homes cheaper to heat for good.”

The Energy Company Obligation will now target support, worth an estimated £540m every year, to fund energy saving improvements in the worst-off households.


• Approximately £350m a year to deliver heating and insulation measures to around 270,000 low income and vulnerable households by 2015, helping them to heat their homes to a healthy level and supporting the Government’s commitment to tackling fuel poverty. This will focus assistance where fuel poverty rates are highest, and ensure help is available for those most in need. 

• Following the responses to the recent public consultation on the Green Deal the Government is considering ways to provide more targeted support for the lowest income homes. This could mean that for those living in the poorest areas, including in social housing, specific support worth around £190m a year will be available from the energy companies to upgrade homes and flats with loft and cavity wall insulation, as well as other insulation measures.