More homes to get insulation work

The insulation scheme is aimed at tackling rising gas and electricity prices

An extra 250,000 UK households will benefit from the government's cut-price insulation scheme this year, an industry body has said.

The National Insulation Association said the annual number of homes it can work on would increase to 1.5 million.

But the extra capacity will see less than 2% of the 15 million eligible homes insulated.

Prime Minister Gordon Brown last week announced free or half-price insulation for all homes.

It was part of a £910m package to combat soaring fuel bills.

Average household electricity bills are expected to increase to more than £500 per year by 2010, and gas bills to around £900.

Other measures in the package included an increase in cold weather payments from £8.50 to £25 per week and a freeze on fuel bills for 500,000 poorer households.

Loft and cavity wall insulation should save households around £275 per year.

The quicker people contact us - the quicker they can get their work done Neil Marshall, National Insulation Association

Some pensioners and low-income families qualify to have the work done free, while all households can expect a 50% reduction in the cost.

The government made clear the measures were part of a long-term strategy but many people have been frustrated at the length of time it will take to get the work done.

The industry initially said it only had capability to insulate 150,000 homes this winter but now says it can increase that number.

Neil Marshall, chief executive of the National Insulation Association, told BBC Breakfast it was important for people to get their applications in quickly.

"The quicker people contact us or their energy suppliers, the quicker they can get their work done," he said.

Under fire

Last week, Mr Brown came under fire for announcing that all pensioners would get the free insulation.

A Department for Environment, Food and Rural Affairs (Defra) spokesman later clarified that only those over 70 and some on benefits were eligible. Discounts are available for others.

Defra expects the work to be completed by 2020.