The government should offer loans to help homes reduce their energy bills and boost their home's efficiency, according to the Local Government Association (LGA).
According to the LGA, there are ten million homes that do not have adequate insulation, a fact which contributes to their carbon emissions and could keep them in fuel poverty.
In anticipation of the LGA's climate change conference next week, chief executive Paul Bettison called on the government to "give councils more powers to unlock the job-creating potential of the low-carbon economy".
He added: "We want the government to introduce a national loans fund to allow residents to invest in solid-wall insulation ? where they have an older home ? and install other measures such as solar power."
Last year Gordon Brown launched a plan to offer all homes free or low cost insulation.
Grants are also available to households through the Low Carbon Building Phase I scheme.
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