Warm Homes Plan: What grants are available for homeowners right now
The Warm Homes Plan is the government’s umbrella policy for home energy efficiency, announced in January 2026 with £15 billion of public funding and a target of upgrading up to five million homes by 2030. What it is not is a single scheme with a single application form. The confusion between the policy and the individual schemes that sit beneath it is a common reason homeowners miss out on support they are eligible for. Here is what is open, what it covers, and how to apply.
Scheme one: Warm Homes Local Grant
The Warm Homes Local Grant is the main new scheme for lower-income homeowners in England. It is not available in Scotland or Wales, which have their own equivalent programmes.
To qualify, the property must be privately owned and must have an EPC rating of D, E, F, or G. Household income must usually be £36,000 per year or less. Households receiving certain means-tested benefits may also qualify, and in some areas homes in lower-income postcodes are eligible too.
The grant can fund up to £30,000 worth of improvements per property. Eligible measures include insulation, such as loft, cavity, solid wall and underfloor, along with heating upgrades, heat pumps and solar panels, depending on what suits the home.
Application is made through the official government service at gov.uk/apply-warm-homes-local-grant. The application is free and refers the household to its local council, which is the body that delivers the scheme. Because local council budgets vary, availability differs by area and earlier applications are more likely to be fulfilled within the programme window, which runs until approximately March 2028.
Scheme two: Boiler Upgrade Scheme
The Boiler Upgrade Scheme is available to any homeowner in England or Wales. There is no income test and no requirement to be receiving benefits. It provides a grant toward the upfront cost of a heat pump installation.
The standard grant is £7,500 toward an air source or ground source heat pump. For homes currently heated by oil or LPG, the grant has risen to £9,000 for new applications made between 21 July 2026 and 31 March 2027, where the switch to a heat pump involves decommissioning off-grid fossil fuel heating. Grants of £2,500 are now also available for air-to-air heat pumps and for heat batteries, which store thermal energy for use during peak demand periods.
The application for the Boiler Upgrade Scheme is not made directly by the homeowner. An MCS-accredited installer applies on the homeowner’s behalf, and the grant is deducted from the installation cost at the point of sale. Finding an accredited installer is therefore the first practical step.
Scheme three: ECO4 — closing 31 December 2026
The Energy Company Obligation Phase 4, known as ECO4, is a scheme under which energy suppliers fund insulation and heating improvements for lower-income households. It is available across Great Britain but closes to new applications and completions on 31 December 2026. Homeowners who are interested in ECO4 should make enquiries now, as installations need to be completed before the year end. After ECO4 ends, support for lower-income households will come increasingly through the government-funded schemes under the Warm Homes Plan.
Zero VAT on qualifying improvements
Separate from the grant schemes, homeowners currently pay no VAT on the installation of qualifying energy-saving measures, including insulation, solar panels, battery storage and heat pumps. No application is needed. This zero rate is due to end on 31 March 2027, when it is set to return to 5%, so anyone planning an installation may benefit from acting sooner rather than later.
Help for households that don’t qualify for grants
The Warm Homes Plan also includes government-backed zero and low-interest loans for solar panels, batteries and other home upgrades, intended to be available to households across all income levels, not only those eligible for grants. These products are still being developed and rolled out. Homeowners should check gov.uk for the latest on availability and how to apply.
What has closed
The Great British Insulation Scheme closed to new applications on 31 March 2026 and is no longer accepting referrals. The Home Upgrade Grant (HUG2) is also closed and has been replaced by the Warm Homes Local Grant for eligible homeowners.
The Energy Saving Trust
For homeowners who are unsure which scheme they qualify for, the Energy Saving Trust’s advice service can provide impartial guidance and help identify the most appropriate route. Its website, energysavingtrust.org.uk, is free to use.
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