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Around 500 British homes are to undergo 鈥渆nergy makeovers鈥� as part of a government trial to test ways of financing the refurbishment of the country鈥檚 existing housing stock.

Energy minister Ed Miliband announced today that a group of local authorities and businesses have been chosen to carry out projects under the 拢4m Pay as You Save scheme. They are Birmingham City Council, Gentoo, Sunderland, British Gas, B&Q UK and Stroud District Council.

The announcement was timed to coincide with the first day of talks in Copenhagen, which aim to secure a global deal on climate change.

The pilot projects will allow householders to invest in energy efficiency and microgeneration technologies with no upfront cost. They will then repay the cost over a long enough period of time that repayments are lower than predicted energy bill savings.

Miliband said: 鈥淭he next two weeks in Copenhagen are crunch time for the planet. The UK has taken a lead in putting solutions on the table throughout the process so far and I鈥檒l not rest until we have the most ambitious, effective and fair deal possible.鈥�

He added: 鈥淥ne quarter of the UK鈥檚 total emissions come from homes, so householders have to be a part of the solution to climate change. Increasing the energy efficiency of homes not only helps reduce emissions, but will also help reduce fuel bills.鈥�

The Energy Bill also receives its second reading in the House of Commons today.