The funding will be allocated in three areas: £31m to help vulnerable homes keep warm this winter, £10m to begin the Green Deal with ‘Pioneer Places’ projects and £5m to establish collective switching schemes.

Local authorities and third sector organizations will use the funding to help Britons keep energy bills down and ensure households are warm this winter, and in the future as well.

Energy Secretary Edward Davey said that the government need to find novel ways to help people with their energy bills, working with communities and councils across Britain.

"This £46million will help local councils across England upgrade inefficient heating kit as well as creating demand for and installing insulation under the Green Deal in homes across their local areas," Davey added.

"Funding will also be used to drive forward collective purchasing and switching initiatives at a local level, helping consumers get a better deal on their energy bills.

"I am delighted so many organisations want to run new co-operative schemes to help people, especially the fuel poor, to get the best deals in the market."