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<p>We recognise that electrically heated homes typically have higher energy costs,
and that reducing these bills is key to addressing fuel poverty.</p><p> </p><p>Improving
energy efficiency is the best long-term solution to tackle fuel poverty, regardless
of the heating system used. The Energy Company Obligation, worth £640 million each
year, is focused on low-income and vulnerable households. The Green Homes Grant, launched
in September 2020, will help improve the energy efficiency of homes in England. £500
million has been allocated under the scheme to the Local Authority Delivery scheme
which is specifically for low income, vulnerable and fuel poor households.</p><p>
</p><p>We are also working to help fuel poor consumers transition away from forms
of heating with high running costs. Heat pumps are a highly efficient, low-carbon
heating solution, and benefit from government support through the Green Homes Grant
and Renewable Heat Incentive. Evidence indicates that a heat pump can lower fuel bills,
especially where it replaces a conventional electric heating system.</p><p> </p><p>In
addition to the available funding to support low-income households with improving
the energy efficiency of their homes, we recognise that some households may need more
immediate support and so also assist with energy bills for low income and vulnerable
consumers through the Warm Homes Discount, Winter Fuel Payments and Cold Weather Payments.</p>
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