You’ve probably Googled “Warm Homes Plan” and ended up more confused than when you started. That’s not your fault. The government launched this thing in January 2026 with a lot of fanfare about £15 billion and five million homes, and then buried the actual useful information in a 152-page policy paper. Nobody has time for that.
So here’s the plain-English version. What the plan covers, who gets what, how much money we’re talking, and exactly what you need to do next. Whether your household income is £20,000 or £80,000, there’s probably something here for you.
What is the Warm Homes Plan?
The Warm Homes Plan is the government’s biggest ever investment in home energy efficiency. Full stop. It launched on 21 January 2026 and runs through to 2030, with the goal of upgrading five million UK homes. The Department for Energy Security and Net Zero (DESNZ) is running the show.
Here are the numbers that matter:
- £15 billion in total government investment at launch
- 5 million homes targeted for upgrades by 2030
- Up to 1 million households lifted out of fuel poverty
- £7,500 heat pump grants available right now to all homeowners, or £9,000 if you’re off the gas grid and replacing oil or LPG
- Up to £30,000 in free upgrades for eligible low-income households
Three big goals sit behind all of this: cut energy bills, reduce carbon emissions from UK housing, and end fuel poverty by 2030. Those are decent goals. The problem is the delivery, which is patchy and confusing depending on where you live.
One change since launch: the Budget on 28 October 2026 took £1 billion of capital grant out of the plan. The Treasury says most of the money for low-income households, delivered through councils and mayors, is protected. None of the grant amounts in this guide changed.
Our take: The money is real, even after the Budget trimmed it. But ignore any website or cold caller telling you to “apply for the Warm Homes Plan” because there is no single application. You apply to specific schemes. Which scheme you go for depends on your income, your property’s EPC rating, and your postcode.
It’s not one scheme. Here’s what it actually is.
Think of the Warm Homes Plan as an umbrella. Four separate schemes sit underneath it. Each one has different rules, different application routes, and different amounts on offer.
1. Warm Homes: Local Grant
This is the big one for low-income households. The Warm Homes Local Grant gives eligible households fully funded home upgrades. We’re talking insulation, heat pumps, solar panels, and battery storage. All paid for. You contribute nothing.
The government has put £500 million into this grant, running from 2025 to 2028.
What makes it different from ECO4?
Your local council runs this scheme, not energy suppliers or random installers knocking on your door. If you qualify, the council arranges the survey and sorts out the installation. You just show up and let them in.
Who qualifies?
- Household income of £36,000 a year or less (this varies by council area, from around £23,000 in some places to £38,000 in others)
- Your home has an EPC rating of D, E, F, or G
- You own your home or rent privately (renters need their landlord’s written consent)
- Your property is in England
Earn above £36,000? You might still qualify. Some councils use an area-based route, which looks at whether your postcode is classed as low-income rather than your personal income alone.
How much can you get?
Up to £30,000 in total, split across two pots:
- Up to £15,000 for energy efficiency improvements like insulation, solar panels, and smart controls
- Up to £15,000 for heating, which usually means an air source heat pump
One important heads-up: councils handle this differently, and some areas have already closed their applications because demand was so high. London paused its portal early in 2026. Apply sooner rather than later.
How to apply: Go to gov.uk/apply-warm-homes-local-grant or ring 0800 098 7950 (Monday to Friday, 8am to 6pm; Saturday, 9am to 12pm). If your council has funding, it will usually contact you within 10 working days to set up a home survey.
2. Boiler Upgrade Scheme
The Boiler Upgrade Scheme (BUS) is the most straightforward option going. It gives you £7,500 toward a heat pump, and unlike everything else, it doesn’t care what you earn.
No benefits required. No EPC threshold. If you want to swap out a gas or oil boiler for a heat pump, you get £7,500 off the price. It covers England and Wales.
What’s on offer:
- £7,500 for an air-to-water (hydronic) heat pump, which heats your radiators and hot water, or for a ground source heat pump
- £9,000 instead of £7,500 if your home is off the gas grid and you’re replacing oil or LPG heating. This higher rate started on 21 July 2026, and Ofgem lists it as available until 31 March 2027
- £2,500 for an air-to-air heat pump, a new addition in 2026 that also cools rooms in summer
The scheme runs until 2030, so you’re not about to miss a cliff-edge deadline. But the October 2026 Budget set next year’s pot at £400 million, less than had been planned, and vouchers are first come, first served until each year’s money runs out. Good installers book up fast too. Start getting quotes now.
Big rule change in 2026: You used to have to sort your insulation before you could claim the heat pump grant. That rule is gone. And since 28 April 2026 you don’t need a valid EPC to apply either.
How does the money work? You find an MCS-certified heat pump installer. They apply for the grant on your behalf and take it straight off your quote. You pay whatever’s left. Simple. Get at least three quotes and make sure each one shows the post-grant price clearly.
3. ECO4
ECO4 has been running since 2022. It requires large energy suppliers to fund home improvements for low-income and vulnerable households. It covers insulation, heating upgrades, and some heat pump installations.
It closes on 31 December 2026. No replacement is planned.
ECO4 is actually easier to access in many areas than the Local Grant because it works through private installers who move quickly. If you receive Universal Credit, Pension Credit, Child Tax Credit, Housing Benefit, or Income Support, check your ECO4 eligibility now. Once it closes, it’s gone for good.
With only weeks left, ask any installer one question before anything else: can you finish the work before 31 December? If the answer is vague, put your energy into the Local Grant instead.
4. Warm Homes Loan Scheme
This one is now open. The government launched it at the end of October 2026.
It’s a loan, not a grant. The government pays part of the cost so that approved lenders can charge less interest on borrowing for solar panels, batteries, and heat pumps. Rates can be up to five percentage points below what the lender would normally charge, and some deals are 0%. There’s no income limit.
How much can you borrow?
- Up to £15,000 for solar panels
- Up to £15,000 for a home battery
- Up to £20,000 for an air-to-water heat pump
- Up to £35,000 for a ground source heat pump
You can borrow for more than one upgrade, and a heat pump loan sits on top of the Boiler Upgrade Scheme grant.
Who can apply? Anyone who owns a home in the UK, with or without a mortgage. That includes private landlords. The work has to be done by an MCS-certified installer.
How to apply: You don’t apply to the government. You apply to one of the participating lenders, and ten were signed up at launch. The lender runs its own credit and affordability checks, same as any other loan.
Compare the total you’d repay, not just the headline rate. A 0% deal over three years and a low rate over fifteen are very different monthly payments.
Who gets what? Here’s a quick cheat sheet.
| Your situation | Your best option right now |
|---|---|
| Low income (under £36k or on benefits), EPC D to G | Warm Homes Local Grant via your council |
| On qualifying benefits | ECO4, if an installer can finish before 31 December 2026 |
| Any homeowner wanting a heat pump | Boiler Upgrade Scheme, £7,500, no income test |
| Off the gas grid on oil or LPG, wanting a heat pump | Boiler Upgrade Scheme, £9,000 until 31 March 2027 |
| Any homeowner wanting solar panels | 0% VAT until 31 March 2027, plus a Warm Homes loan |
| Private renter on low income | ECO4 or Local Grant, landlord consent required |
| Social housing tenant | Contact your housing association directly |
Not sure where you land? Start with your EPC rating. Search your address on the GOV.UK EPC Register. That one number shapes almost every decision you make from here.
How much money are we actually talking about?
Let’s make this concrete with three real-world scenarios.
Scenario A: Low-income household, EPC E rating. You apply for the Warm Homes Local Grant. Your council installs loft insulation, cavity wall insulation, and an air source heat pump. Total value: up to £25,000. Your cost: nothing.
Scenario B: Average homeowner, gas boiler, wants a heat pump. A heat pump quote comes in at £14,000. The installer takes off the £7,500 BUS grant. You also save £800 to £1,200 on installation costs thanks to 0% VAT (that rate runs until March 2027). You end up paying somewhere between £5,300 and £6,500.
Scenario C: Homeowner who wants solar but doesn’t qualify for free schemes. A 4kW system runs £6,500 to £8,000 in 2026. The 0% VAT saves you around £1,300 upfront. Once the panels are up, you register for the Smart Export Guarantee and earn between £75 and £375 per year for the electricity you sell back to the grid. And you can now spread the initial cost with a Warm Homes loan instead of finding it all upfront.
The 0% VAT saving nobody talks about enough
Regardless of income, benefits, or EPC rating, one saving applies to you right now.
Since April 2022, solar panels, battery storage, and heat pumps all qualify for 0% VAT on residential installations. Here’s what that means in cash terms:
- Solar panels (4kW system at £7,000): save around £1,167
- Home battery (10kWh at £5,000): save around £833
- Heat pump installation: save £800 to £1,400, depending on system size
This rate goes back to 5% from 1 April 2027, and the October 2026 Budget did not extend it. Any installation completed before that date locks in the saving permanently.
What upgrades does the plan actually cover?
Here’s the full list of what the various schemes fund:
Insulation: Loft, cavity wall, solid wall (internal and external), underfloor, and room-in-roof insulation.
Heating: Air source heat pumps, ground source heat pumps, and the new air-to-air heat pumps added in 2026.
Renewable energy: Solar PV panels, home battery storage, and smart energy controls.
Other measures: Draught-proofing, smart thermostats, and in some cases double glazing as part of a wider package.
The government pushes a fabric-first approach. Fix the insulation before you add a heat pump. A well-insulated home needs a smaller, cheaper heat pump to do the same job, and your bills stay lower for decades.
How to apply: what you actually need to do
Step 1: Find your EPC rating. Go to the GOV.UK EPC Register and search your address. An EPC of D or below puts you in scope for the most generous support. If your certificate is more than ten years old, get a fresh one.
Step 2: Work out your income situation. Are you on Universal Credit, Pension Credit, or another means-tested benefit? Is your household income under £36,000? Yes to either means the Local Grant or ECO4 is your starting point.
Step 3: Apply to the Warm Homes Local Grant. Go to gov.uk/apply-warm-homes-local-grant. You will need proof of income and your EPC. If your council has funding, it usually gets back to you within ten working days to arrange a free home survey.
Step 4: Check ECO4 at the same time. Don’t wait. ECO4 closes on 31 December 2026. Contact a registered ECO4 installer or your energy supplier, and ask straight out whether the work can be finished in time.
Step 5: Getting a heat pump? Get three quotes. Any MCS-certified installer can apply for the BUS grant for you. Get at least three quotes. Every quote should clearly show the post-grant price. Compare like for like.
Step 6: Getting solar? Sort the VAT and register for the SEG. All solar installations run at 0% VAT until 31 March 2027. Once your panels go up, register for the Smart Export Guarantee through your electricity supplier. Every major supplier has to offer you an export tariff by law. Don’t leave that money sitting unclaimed.
Step 7: Need to spread the cost? Compare Warm Homes loans. Get your installer quotes first, then compare what the participating lenders would charge on that amount.
Deadlines worth knowing
| Date | What happens |
|---|---|
| January 2026 | Warm Homes Plan launches. Local Grant starts rolling out via councils. |
| April 2026 | Government energy bill measures reduce average bills by around £150. Heat pump grant opens to air-to-air systems and drops the EPC requirement. |
| July 2026 | Heat pump grant rises to £9,000 for off-gas-grid homes replacing oil or LPG. |
| October 2026 | Warm Homes Loan Scheme opens. Budget removes £1 billion of grant funding from the plan. |
| 31 December 2026 | ECO4 closes permanently. No replacement planned. |
| 31 March 2027 | Last day of 0% VAT on solar and heat pumps; it reverts to 5%. The £9,000 oil and LPG rate is listed as available until this date. |
| 2030 | All rental properties must reach EPC C. Five million homes target. |
What if you earn too much to qualify for free upgrades?
You still have real options. Four of them.
Boiler Upgrade Scheme. The £7,500 heat pump grant has no income limit. Every homeowner can use it.
0% VAT. Works for everyone, automatically, until 31 March 2027. No form to fill in.
Smart Export Guarantee. Install solar panels and start earning from the electricity you generate but don’t use. Current export rates run between 12p and 15p per kWh. A typical 4kW system earns £300 to £375 a year. Over 25 years, that’s up to £9,000 in export income, on top of what you save by not buying electricity from the grid.
Warm Homes loans. Open now, with no income limit. Combined with the BUS grant and the VAT saving, the all-in cost of going solar plus heat pump starts looking much more manageable. If you want the VAT saving too, the installation needs to be done before 1 April 2027.
Frequently asked questions
Is the Warm Homes Plan the same as ECO4? No. ECO4 is one piece of a bigger picture. It’s funded by energy suppliers and closes on 31 December 2026. The Warm Homes Plan is the government’s wider strategy, which also includes the Local Grant, the BUS, and the Warm Homes Loan Scheme.
Can I apply for the Warm Homes Plan directly? You can’t. There’s no single application form. You apply to the specific scheme that matches your situation. That’s the Local Grant if you’re on a low income, the BUS if you want a heat pump, or ECO4 if you receive qualifying benefits.
Do I need to be on benefits? Not always. The Local Grant uses an area-based route in some council areas, so you might qualify based on your postcode rather than your benefits status. The BUS has no income or benefits test at all.
Will I get support for solar panels? Low-income households can get solar through the Local Grant. Everyone else gets 0% VAT until 31 March 2027 and can apply for a Warm Homes loan.
My council isn’t taking applications. Now what? Some councils paused their portals because applications came in faster than they could handle. Check the national portal at gov.uk/apply-warm-homes-local-grant or call 0800 098 7950. With ECO4 about to close, it’s also worth asking your energy supplier what help it still offers.
Can private tenants apply? Yes, through ECO4 or the Local Grant. Your landlord needs to give written consent before any work starts. Worth having that conversation now. From 2030 landlords must upgrade rental properties to EPC C anyway, so they have skin in this game too.
What if I can pay but the upfront cost is the issue? That’s what the Warm Homes Loan Scheme is for. Stack a reduced-rate loan with the BUS grant and the VAT saving, and the numbers start working much better.
The bottom line
The Warm Homes Plan is the real deal. The funding exists. But you won’t find a single front door to walk through. You pick the scheme that fits your situation and you apply to that one.
Two numbers matter most: your EPC rating and your household income. Find those out first. Everything else follows from there.
If you’re on a low income with a poorly rated home, move quickly. ECO4 closes on 31 December 2026 and local grant funding is allocated by area. First come, first served.
If you’re an average homeowner who wants a heat pump, the £7,500 BUS grant is sitting there waiting for you, no income test required. On oil or LPG, it’s £9,000 until the end of March.
And if solar is the goal, you’re already saving on VAT right now, and the loan scheme is open if you’d rather not pay for it all upfront.
Sources
- GOV.UK: Apply for the Warm Homes: Local Grant
- GOV.UK: Boiler Upgrade Scheme grant categories and values
- Ofgem: Boiler Upgrade Scheme
- GOV.UK: Warm Homes Loan Scheme
- GOV.UK: Warm Homes Loan Scheme factsheet
- GOV.UK: Extending the ECO4 end date, government response
- GOV.UK: Energy-saving materials and heating equipment (VAT Notice 708/6)
Grant schemes change. Check the current terms with the scheme’s administrator before you apply.