The scheme would see homeowners offered a council tax discount of £100 a year if they added further insulation to their homes.

This would be offered for 10 years, meaning homeowners could save more than £1,000.

The party would also extend current home improvement schemes to include renewable heat and electricity.

In addition to these plans, the Liberal Democrats aim to ensure every home has the opportunity to be energy efficient by 2035.

Liberal Democrat leader and Deputy Prime Minister Nick Clegg said his party had implemented a number of green home policies during its time in government.

“We relentlessly pushed the green agenda over the last five years in government, in the face of strong resistance from the Conservatives,” he said.

“Yet despite much needed progress, people particularly from vulnerable households still suffer from homes that are too cold and bills that are too high.

“Energy efficiency is the most important fuel we didn’t know we had. Insulating millions of homes will significantly improve the cost of living and quality of life of people across the UK.”

Liberal Democrat Secretary of State for Energy and Climate Change Ed Davey said: “Lib Dems in government have a proud record of improving the nation’s leaky housing stock resulting in permanently warmer homes and cheaper bills, including beating our own target of getting one million homes more energy efficient through ECO and the Green Deal in the past two years.

“This is a solid start but I now want to see nothing less than a Green Homes revolution, delivering 10 million energy efficient homes by 2025 through ambitious targets and generous incentives for people who carry out work to make their homes warmer, cheaper and greener.”