Almost £1.3m is being spent on external insulation to improve the energy efficiency of more than 150 council-owned houses.
Work to install the insulation on 70 homes in Radcliffe Road, New Cross Road, Cliff Road and Cliff Crescent in Stamford is currently underway.
And cladding was added to 87 homes in Northumberland Avenue before Christmas.
The work will cost £1,281,000 in total, with £712,000 coming from the Government’s energy company obligation grant and the rest from South Kesteven District Council, which owns the homes.
A planning application to install insulation on a further 73 houses in Lambeth Walk and Little Casterton Road has been submitted.
Portfolio holder for good housing Terl Bryant (Con) said the grant money was key in enabling the council to carry out the work quickly.
He added: “We’re delighted at being able to continue our programme of improvements to the insulation of our homes.
“I have spoken directly to tenants in Grantham where work has already been done and they have told me that a big difference has been made to the warmth of their homes and the costs of heating them.”
Many of the homes have been repainted in the last two years as part of the council’s ongoing refurbishment programme.
The council was not aware that grant funding for insulation would be available when the painting was done.