London mayor Sadiq Khan has set aside £43m to boost his Warmer Homes programme, which seeks to support those in poorly insulated properties.
With energy bills expected to rise again this winter, amid a cost of living crisis, Khan is looking to create grants of between £5,000 and £25,000 available to low-income households.
Energy regulator Ofgem has forecast bills to increase by another 40 per cent in October, the equivalent of £800.
The grants will be used for energy efficiency upgrades, such as heat pumps, insulation for walls, lofts and floors, heating system improvements or repairs, draughtproofing and solar energy installations.
The scheme, which has so far supported around 14,700 London households, has received £63m worth of funding since 2018, including the latest injection.
“With the unprecedented cost of living crisis and soaring energy prices, I am particularly concerned about those on lower incomes whose energy bills are likely to take up a larger share of their outgoings,” the mayor said in a statement.
“I’m proud to be helping deliver long term solutions to avoid future crises and protect Londoners in stark contrast the governments short-term sticking plaster approach.”
While the mayor has welcomed the government’s U-turn on the windfall tax for energy giants, which have been reporting record profits during the crisis, he urged ministers ensure benefits match the rate of record inflation.
“Ministers must do more, starting with restoring the universal credit £20 a week uplift and increasing benefits by the actual level of record inflation as soon as possible,” he said.