Energy Secretary Kwasi Kwarteng has announced that the scheme would stop on Wednesday 31 March.

Some of the money for the Green Homes Grant (GHG) is to be reallocated to separate insulation funds run by councils and targeted at lower income households. The Green Homes Grant Local Authority Delivery Scheme and Social Housing Decarbonisation Fund Demonstrator will receive £300 million to add to the existing pot of £500 million.

This means that households in England with an annual income of more than £30,000, the limit for the existing grants, are currently no longer able to benefit from government help, leaving the need for a new initiative to replace the GHG.

The scheme was designed to provide a short-term economic boost while tackling the UK's contribution to climate change. Applications made before the end of March deadline will be honoured and any vouchers already issued may be extended upon request.

Last week a parliamentary committee of MPs had issued a highly critical report recommending that the scheme be urgently overhauled, but not scrapped.

BEIS figures from December 2020 show that just under 60,000 vouchers had been applied for. And as of 8 February 2021, 22,165 vouchers had been issued to customers, when the scheme was expected to help improve 600,000 homes. 

The scheme, which was originally due to close on Wednesday, had been extended to March 2022, a decision which has now been reversed. 

Business and Energy Secretary Kwasi Kwarteng, focusing on the reallocation of funding, said: “Upgrading the country’s homes with energy efficiency measures means we can cut emissions and save people money on their energy bills.

“Today’s funding boost will mean even more households across England are able to access these vital grants through their local authority.

“This latest announcement takes our total energy efficiency spending to over £1.3 billion in the next financial year, giving installers the certainty they need to plan ahead, create new jobs and train the next generation of builders, plumbers and tradespeople.”