The business secretary says an extra £1bn will be spent to insulate the UK's least energy-efficient homes.
Grant Shapps says the new funding was part of a strategy of working towards an energy-independent future for the UK and would save those who benefitted around £310 a year.
The ECO+ scheme will target homes that have a low energy efficiency rating and are in the lower council tax bands.
The Department for Business, Energy, Industry, and Skills says households who currently did not benefit from any other government support would be able to upgrade their homes under the expansion of the scheme.