The government's Department of Energy & Climate Change is set to spend £3.5 billion on making British homes more energy efficient which could result in cheaper electricity bills for consumers.
More help will be available to households to ensure they help the government meet its Carbon Emissions Reduction Target.
It will also ensure the UK complies with the new Community Energy Saving Programme.
Minister of state in the Department of Energy and Climate Change Joan Ruddock said: "Home energy efficiency has never been so important in achieving our long term goals on climate change and to making a real difference to householder's energy bills."
She added that community-level solutions were the key to fighting climate change in the most cost-effective way.
Earlier this year, the Local Government Association called on the government to toughen targets for cutting carbon emissions in the home, claiming that many energy companies are dodging their responsibilities.
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