The loan would be linked to your property, rather than to you, and is designed to help spread the cost of energy saving improvements by allowing households to pay back the loan from the energy savings made each year.

The ‘save-as-you-pay’ initiative is part of the Governments plan to cut emissions from all 22 million UK households by 29% by 2020.

Installing solar panels can reduce energy bills by up to 80%, and can even earn money from selling energy back to the grid. But many are unable to fund the initial cost of installing such measures, which can amount to around £7000-£10,000.

Whilst this new scheme would help to reduce this initial investment, critics argue that new home owners could be forced to pay for the previous owners loans, and could lead to problems selling a home in the first place.

“I think it could have a detrimental effect on the housing market. Just the principle of attaching a loan to the property complicates things unnecessarily and it interferes with the free market value of the house,”  Gary Smith, President of the National Association of Estate Agents says.

However, Ed Miliband argues that the improvements made to the home, and therefore the energy savings, would far outweigh any loan attached to the property:  “You’ll find that the energy bills are significantly lower so, say, you’ll be having a few hundred pounds off your energy bills and offsetting that you’ll have a couple of hundred pounds in payments.”

The Conservatives argue that any loan paypack should be linked to household energy bill, allowing greater transparency: “It would not be a debt attached to the home, we would pay it off over time through the electricity bill,” Greg Clark, the Conservatives energy spokesman.

The Goverment is due to launch a new Feed in Tariff for solar panels and wind turbines in April, allowing homes to sell energy back to the grid in return for tax-free cash. This is coupled with existing grants available towards the cost of cavity wall and loft insulation.

Whatever your view, it seems evironmental policy, and specifically how to encourage households to cut emmissions, will be a popular point of discussion in the run up to this year’s general election.

A combined £1.9 billion in extra fuel payments is expected, as the demand for gas and electricity continues to rise during the so-called Big Freeze.

It seems the rising demand has come as a surprise to companies such as the National Grid, who have reported a limited supply, causing prices to escalate even further.

Many argue that it is another example of poor planning and forecasting on behalf of the energy companies, and once again the public have no choice but to pay prices far in excess of most other European countries.

An increase of almost 50% on this months fuel bill is likely to hit those on lower incomes and benefits the hardest, many of whom are already struggling to afford to heat their homes.

Aside from winter fuel allowances, the Government could have issued advice on how to keep warm this winter. This information could have included tips on ensuring valuable heat stays inside your home.

With recent news that funding for insulation grants is coming to an end later in the year, the Government needs to do more to ensure that households in Britain are not forced into choosing between heating their home, or putting food on the table.

More information and advice on insulating your home is available, as well applying for insulation grants for your home.

A wait of 6 months for free insulation

Those applying for 100% grant are being told they face a wait of up to 6 months for work to be done, as the amount of funding is due to be halved in 2010. The Warm Front scheme has made 2 million UK home more energy efficient since its launch in 2000, cutting the amount of wasted energy emitted and saving millions of pounds off the cost of energy bills across the country.

The Government has pumped just shy 0f £1 billion into the scheme in the last 3 years, but according to reports, the Chancellor is due to announce that money available in 2010 is to be cut to £195 million. The result? Waiting times for those looking for 100% insulation grants will rise from the current 50 days to 6 months.

Those who are able to pay shouldn’t be affected.

It’s not clear whether funding for those who not on benefits will face similar waiting times. Currently, if a homeowner, tenant or landlord is not on benefits, or are under 70, they are classed as Able To Pay (ATP). This group still receives some funding from the government, but can usually expect to see insulation installed and fitted within days, rather than months. Why? Because they lengthy process of applying for the relevant grant is bypassed, and insulation contractor can receive payment immediately.

The future of insulation grants

So what does this mean for the future of free insulation grants? It’s not yet clear whether the amount of funding available will be reviewed again before next years budget. Energy Minister David Kidney is lobbying the government to increase the funding available for the Warm Front scheme, but it seems likely that a) funding will be cut b) waiting times for those applying for 100% grant will increase and c) those able to pay for part of the cost shouldn’t be affected.

“It is shocking that so many families have to borrow money to pay for essentials such as heating… families cannot continue to scrape by like this,” Fergus Drake, Save the Children’s UK Director said.

Those who  earn less than £12,000 said they would struggle this winter, and over half said they would be forced to borrow money to pay for heating during Christmas.

According to Save the Children,  those most likely to go cold this winter are families where parents earn less than £30k per annum combined. However,  where these families receive certain benefits, insulation grants are available to cover up to 100% of the cost of home insulation, therefore making instantly cutting an annual energy bill by around £250, for free.

Cavity wall or loft insulation could help to prevent heat escaping from the home and thus reduce bills by up to 20% a year. The effect is instant and the work takes just a few hours to complete.

According to recent reports, 3.5 million eligable homes have not yet claimed a free insulation grant. Find out  if you’re eligable to receive a free insulation grant towards cavity wall of loft insulation.

More heat is lost through your walls than any other part of your home. Cavity wall insulation helps to instantly reduce heat loss by 40% by plugging the gap between the two layers of brick that make up your outer wall. By filling this gap with insulation, it makes it difficult for heat to pass from the inside of your house, to the outside world.

The actual insulation material used can vary, but is typically made up of pockets of air, which prevents convection from occurring and greatly reduces any heat loss

Not all houses can receive cavity wall insulation. As the name suggests, there needs to be cavity, or gap, between the two layers of brick which make up your outside wall. If your home was built between 1930 and 1995, you are most likely to be suitable.

The installation process is simple and relatively quick. Cavity wall insulation can be installed within about 2 hours within minimal disturbance inside your home. Holes of around 25mm in diameter are drilled into the outer layer to reach the cavity inside. Several holes are drilled a metre or so apart and the insulation material is blown or injected in.

Cavity wall insulation can help to:

* Reduce your heating bills by up to £115 per year   (source: Energy Saving Trust)

* Increase the value and saleability of your home

* Increase your energy rating

*Create a warmer and more comfortable environment for your family

Is my home suitable for cavity wall insulation?

It is very important to check the suitability of your home for receiving cavity wall insulation before any work is done. A survey should always be carried out prior to any work being done, and a qualified surveyor will be able to assess suitability. He or she will consider the exposure of outside walls to wind and rain, and also the method of construction used.

If you have a problem with damp or moisture inside your home, you should notify the surveyor of this before any work is carried out.

Similarly, if there has been any frost or structural damage to the walls in the past, the surveyor also needs to be made aware of this.

Can I receive a grant towards the cost of my insulation?

In 2008, the Government announced a scheme to help homeowners and tenants with the cost of insulating their home. Insulation grants are available to homeowners and tenants looking to reduce their energy bills, and make their home more eco-friendly by installing insulation.

The grants are part funded by the government, and part funded by the energy companies (at a cost of £910 million! Source: Energy Saving Trust).

Calculate your insulation grant eligibility here.

Households will be expected to save around £120 a year off their energy bills, and the project is also predicted to cut CO2 emmissions by 88,000kg per year as a result of the new insulation scheme.

Full story: http://www.hounslowchronicle.co.uk/west-london-news/local-hounslow-news/2009/11/02/fuel-bill-relief-for-1-100-hounslow-homes-109642-25073685/

With the cost of fuel set to continue to rise, the Council has agreed to work in partnership with agencies to “ensure that the residents Aberdeenshire get access to the most cost-effective ways ofpaying for their domestic fuel”.

Energy efficient measures, including cavity wall and loft insulation, have already been installed in 3,800 council homes, and the Council agreed this figure should increase over the next 2-3 years.

It is yet another example of where insulation can be used to dramatically reduce heating bills.

Full story: http://www.deesidepiper.co.uk/news/Support-for-fuel-poverty-action.5793798.jp