Vulnerable households could apply for £200 a year to help with energy bills

A new government scheme could see households save around £200 a year on their energy bills.

Thousands of people in the UK overpay by hundreds of pounds a year on bills as a result of poor insulation.

But in the "mini" Budget on September 23, the government announced it's expanding the energy company obligation.

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This funds the suppliers to provide eligible households with energy efficient improvements.

It can include funding for home improvements, like insulation and heating controls.

The scheme will be available to low-income and vulnerable households in council tax bands A-D.

However, the government is yet to confirm full details of who is eligible and how people can claim.

But in documents released after the budget, it said the help will be worth £1billion over the next three years, starting from April 2023.

Richard Neudegg, head of regulation at, said: "Energy efficiency improvements allow heat to be held inside our homes, which could make a significant difference to bills while reducing our reliance on gas.

"Any legislation that supports this is welcomed, although far more urgency will be required to meet the true scale of this challenge."

It comes after the government announced the energy price guarantee which will freeze bills at £2,500.

The help will be in place from October 1 to help households deal with soaring energy bills.

Prime Minister Liz Truss announced the scheme to replace Ofgem's price cap which would have seen bills surge to £3,500.

But Martin Lewis, founder of MoneySavingExpert, warned the bills could still rise.

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