The new strategy will also be good for jobs, with up to 65,000 jobs required in the green homes industry as a result, for example installing and manufacturing energy saving measures or providing home energy advice.
The strategy will be implemented in a three stage plan:
* To insulate 6 million homes by the end of 2011
* To have insulated all practical lofts and cavity walls by 2015
* To have offered up to 7 million eco upgrades by 2020; all homes to have smart meters.
The main elements of the Warm Homes, Greener Homes Strategy include:
1. Action to dismantle the financial barriers to energy efficiency
* Legislating to allow new 'pay as you save' green loans to be tied to the property, which will avoid the up-front cost of eco upgrades
* Help those in private rented accommodation whose landlords have little incentive to take action and who endure poorly insulated and cold accommodation.
2. New local approach
* Energy companies and local authorities teaming up to make homes more energy efficient - with energy companies required to help householders become more energy efficient. The new local partnership approach will take over from 2013, once the current Carbon Emissions Reduction Target ends
* Building on the Local Carbon Framework pilots announced by Communities Secretary John Denham in December, which are a new approach for local authorities to set targets and put in place plans to reduce carbon emissions.
3. Help to those who need it most
* Direct help to those that need it most with energy companies targeting work towards lower income groups
* A new 'Warm Homes' standard for social housing will see all social tenants receive free energy upgrades for their homes from energy companies, including fitted smart meters, leading to savings of up to £300 a year on bills
* Consult on setting minimum energy efficiency standards for rented property to help tenants left in poorly insulated, cold and energy wasting properties - and ensuring standards are met before they are rented out
4. Better information and standards for consumers
* One stop shop energy helpline for people to access trust-worthy information about how to benefit from energy efficiency measures
* New set of standards for workmanship and products to protect consumers from the threat of cowboy eco-builders and dodgy products
* A new network of eco show homes to demonstrate the range of money saving and money generating technology available
* Proposals to overhaul the scope of Energy Performance Certificates, to give householders a better understanding of what they can do to improve the energy efficiency of their homes, including an online modelling system so homeowners can do a virtual green makeover before taking action.
5. As part of our work with the corporate sector to promote behaviour change, DECC is funding a new initiative collaborating with a small group of leading employers to mobilise their employees to insulate their homes. Later this month, the 'Insulate Today' pilot programme will be launched by Aviva, HSBC and Sainsbury's reaching around 250,000 staff members, making it easier, cheaper and more appealing for them to insulate their homes and saving them money and energy.
Today's new strategy builds on the progress already made in making the UK's homes more energy efficient. Between 2002 and April 2008, the Government has helped 5 million homes become more energy efficient. Government support has already been aimed at vulnerable groups including the fuel poor. Warm Front - the Government scheme for the fuel poor - has helped over 2 million vulnerable households, across England, since its inception in June 2000, including half a million households in the last two years alone.