Grants & Schemes
Warm Homes Plan UK 2026: The Complete Guide
Britain's biggest-ever home energy programme — £15 billion to upgrade 5 million homes by 2030. Free upgrades for low-income households, universal heat pump grants, and loans for everyone else. Here's what's confirmed, what's coming, and what you can apply for right now.
Quick answer: The Warm Homes Plan isn't a single scheme — it's an umbrella programme covering several grants and funding routes. The three that matter most right now: the Warm Homes Local Grant (free upgrades for low-income households), the Boiler Upgrade Scheme (£7,500–£9,000 heat pump grant for all homeowners), and ECO4 (running until December 2026). A government-backed loan scheme for everyone else is coming from 2027.
On this page:
What is the Warm Homes Plan? · Which schemes are live now · Who qualifies · What's covered · How to apply · What's coming in 2027 · FAQ
What is the Warm Homes Plan?
The Warm Homes Plan is the UK government's overarching strategy for improving home energy efficiency, published on 21 January 2026 and backed by just under £15 billion in capital investment. It's the largest home energy upgrade programme in British history — larger than the Green Deal, larger than ECO4, and designed to run continuously until 2030 rather than in the stop-start phases that previous schemes used.
Critically, it's not a single scheme you apply for directly. It's an umbrella that brings together several existing and new funding routes — the Warm Homes Local Grant, the Boiler Upgrade Scheme, ECO4, and eventually a consumer loan scheme — under one strategic framework. Understanding which route applies to your situation is the key thing this guide will help you work out.
⚠️ Important distinction: The Warm Homes Plan replaces the patchwork of previous schemes as they close. ECO4 ends December 2026. GBIS ended March 2026. If you were previously told you might qualify for ECO4, the advice now is to apply under the Warm Homes Local Grant route instead — the eligibility criteria are similar but the funding cap is significantly higher.
Which schemes are live right now
| Scheme | Who it's for | Maximum support | Status |
|---|---|---|---|
| Warm Homes Local Grant | Low-income households, EPC D–G | Up to £30,000 free | ✅ Open |
| Boiler Upgrade Scheme | All homeowners (England & Wales) | £7,500–£9,000 grant | ✅ Open |
| ECO4 | Low income, fuel poor households | Varies | ⏳ Ends Dec 2026 |
| Consumer Loan Scheme | All homeowners (no income test) | Low-interest loans | 🔜 From 2027 |
Who qualifies — and for which route
✅ Free upgrades if you...
- Have household income ≤ £36,000/yr
- OR receive means-tested benefits (Universal Credit, Pension Credit, etc.)
- OR live in a qualifying postcode
- AND have EPC rating D, E, F or G
→ Apply via Warm Homes Local Grant
✅ Heat pump grant if you...
- Own your home in England or Wales
- Are replacing a fossil fuel heating system
- No income test — available to everyone
→ Apply via Boiler Upgrade Scheme
🔜 Low-interest loans if you...
- Own your home anywhere in Great Britain
- Earn above £36,000 and don't qualify for free upgrades
- Want solar, battery or heat pump with no upfront cost
→ Consumer Loan Scheme, launching 2027
Important note for renters: Private tenants can apply for the Warm Homes Local Grant if they meet the income requirements — the property owner does not need to meet income thresholds. Eligibility is based on your circumstances, not your landlord's. Social housing tenants cannot apply directly but may benefit through their housing association or local authority.
What's covered — the full list of eligible measures
-
🧱
Insulation
Loft, cavity wall, solid wall, underfloor and flat roof insulation. Often the first measure installed as it maximises the effectiveness of any heating system added afterwards. -
♨️
Heat pumps
Air source and ground source heat pumps. Covered under both the Warm Homes Local Grant (free for eligible households) and the Boiler Upgrade Scheme (£7,500–£9,000 for everyone). The EPC insulation requirement was removed in April 2026 — you no longer need to clear insulation recommendations before applying. -
☀️
Solar panels
Free for qualifying low-income households via the Warm Homes Local Grant. A typical 4kWp installation generates around 3,500 kWh per year. 0% VAT applies until March 2027 for everyone else. -
🔋
Battery storage
Included alongside solar panels for eligible households under the Local Grant. 0% VAT applies until March 2027 for everyone else — saving £900–£2,300 on a typical installed system. -
🪟
Windows and doors
Double and triple glazing, draught-proofing measures. Included where the property assessment identifies them as cost-effective improvements. -
🌡️
Smart controls
Smart thermostats and heating controls. Often included alongside other measures as they improve the overall system efficiency at low additional cost.
How to apply — step by step
-
1
Check your EPC rating.
Look up your property on the GOV.UK EPC register. For free upgrades you need a D, E, F or G rating. If your EPC is recent and shows A–C, the Local Grant won't apply but the Boiler Upgrade Scheme still might. -
2
Check your income and benefits.
Household income ≤ £36,000 qualifies automatically. If you receive Universal Credit, Pension Credit, Child Tax Credit, Housing Benefit or other means-tested benefits, you qualify regardless of income figure. -
3
Contact your local council.
The Warm Homes Local Grant is administered locally — your council determines the process and waiting times. Visit gov.uk/apply-warm-homes-local-grant to find your area's scheme. Some councils have waiting lists so applying early is recommended. -
4
Free home survey.
An approved installer visits your property to assess which measures are technically suitable and will make the biggest improvement to your EPC rating. This survey is free and there's no obligation to proceed. -
5
Installation — no cost to you.
Approved works are carried out by MCS-certified installers. The grant is paid directly to the installer. You receive a new EPC after completion, and all measures come with manufacturer guarantees.
For heat pumps specifically — the Boiler Upgrade Scheme is installer-led, meaning you don't apply directly to the government. Instead, find an MCS-certified installer who will handle the application on your behalf. Use our free quote service to get quotes from certified installers in your area.
What's coming in 2027
The biggest gap in the current Warm Homes Plan is support for households who earn above £36,000 and don't qualify for free upgrades, but can't easily afford £8,000–£15,000 for a heat pump and solar system upfront. The government has committed to filling this with a Consumer Loan Scheme backed by up to £2 billion, offering low-interest long-term loans for solar panels, battery storage and heat pumps.
Details — including interest rates, loan terms and how to apply — are expected later in 2026, with the scheme launching in phases from 2027. In the meantime, 0% VAT on solar and battery installations (until March 2027) and the universal BUS heat pump grant are the main options for middle-income homeowners.
Other confirmed developments:
- New Warm Homes Agency — a dedicated delivery body to co-ordinate the programme, replacing the fragmented current delivery model
- Minimum EPC C for private rentals by 2030 — landlords who make improvements from October 2025 can count them toward the cost cap
- £2,500 air-to-air heat pump grant — expected late 2026, covering units like wall-mounted split systems (relevant to our AC guide)
- Future Homes Standard — implemented Q1 2026, requiring all new builds to be low-carbon ready
Frequently asked questions
Not sure which scheme applies to you?
Our free eligibility checker takes 2 minutes and tells you exactly which Warm Homes Plan route — free upgrades, BUS grant or 0% VAT — you can access right now.
Ready to get heat pump or solar quotes?
Compare quotes from MCS-certified local installers — free, no obligation, and they handle the BUS grant application on your behalf.
Get Free Quotes →Last updated: 7 July 2026. Based on the GOV.UK Warm Homes Plan policy paper published 21 January 2026, updated 18 March 2026. Boiler Upgrade Scheme grant figures correct as of July 2026 — the oil/LPG increase to £9,000 takes effect 21 July 2026. Consumer Loan Scheme details are subject to confirmation by government later in 2026. Always verify current eligibility with your local council or an MCS-certified installer before making financial decisions.