Warm homes plan funding, FAQs
Honest answers to the questions our customers actually ask. Last updated for 2026.
What is the Warm Homes Plan and how do I get funding from it?
The Warm Homes Plan is the UK government's flagship home-energy programme, published in January 2026, with around £15 billion to upgrade up to five million homes by 2030. It isn't a single grant you apply for, it's an umbrella that funds the Boiler Upgrade Scheme, the Warm Homes: Local Grant, the closing ECO4 and GBIS schemes, and a new low/zero-interest finance route. To get funding you apply to the specific sub-scheme you qualify for. We help you identify which one fits your home or business and point you to the official gov.uk eligibility checker.
Am I eligible for free home energy grants?
It depends on the scheme. If you're on a means-tested benefit (Universal Credit, Pension Credit, income-based JSA/ESA, Income Support, Housing Benefit, Tax Credits) and your home is EPC D-G, you likely qualify for ECO4 or the Warm Homes: Local Grant, fully funded. If you're not on benefits but in Council Tax bands A-D (A-E in Scotland/Wales) with EPC D or below, the Great British Insulation Scheme General Group may fund insulation. And any homeowner in England or Wales replacing a gas/oil boiler can get £7,500 for a heat pump through the Boiler Upgrade Scheme regardless of income.
What is ECO4 and what does it pay for?
ECO4 is the fourth phase of the Energy Company Obligation, run by Ofgem and funded by the big energy suppliers. It pays for insulation, first-time central heating, heating-system upgrades, heat pumps and solar PV, at no cost, for fuel-poor households in EPC band D-G on qualifying means-tested benefits. It's a whole-house, fabric-first scheme, so eligible homes often receive several measures together. ECO4 runs to 31 December 2026 (final applications 31 March 2026).
When does ECO4 end and what replaces it?
ECO4 runs until 31 December 2026 following a nine-month extension, with the final IM/DLM application date of 31 March 2026. The government has confirmed there will be no ECO5, from 2027 the supplier-obligation model is replaced by the Warm Homes Plan, which channels funding through the Warm Homes: Local Grant, the Boiler Upgrade Scheme and a new finance route instead.
What is the Great British Insulation Scheme (GBIS) and who qualifies?
GBIS funds a single insulation measure (loft, cavity wall, solid wall, room-in-roof or underfloor) for eligible homes. There are two groups: a Low-Income Group on the same means-tested benefits as ECO4 (any Council Tax band), and a broader General Group for homes in Council Tax bands A-D in England (A-E in Scotland and Wales) with an EPC of D or below. It's delivered by six obligated suppliers and closes to new measures on 31 March 2026.
How much is the Boiler Upgrade Scheme grant?
The Boiler Upgrade Scheme pays £7,500 towards an air source heat pump, £7,500 towards a ground source heat pump (including water source and shared ground loops), £5,000 towards a biomass boiler, and £2,500 towards an air-to-air heat pump. It's available to homeowners and small businesses in England and Wales replacing a fossil-fuel heating system, and the grant is deducted directly from your MCS-certified installer's invoice.
Do I have to be on benefits to get a heat pump grant?
No. The Boiler Upgrade Scheme's £7,500 heat pump grant is open to any homeowner in England or Wales replacing a fossil-fuel (or non-heat-pump electric) heating system, there's no income or benefit test. The benefit-led schemes (ECO4, Warm Homes: Local Grant) are separate routes for fully funded whole-house packages. Many households use BUS for the heat pump and a separate scheme for insulation.
What is the Warm Homes: Local Grant?
It's a council-delivered grant within the Warm Homes Plan, running 2025-2028, for lower-income owner-occupiers and private renters in England with EPC band D-G homes. The typical test is gross household income under £36,000 (postcode or qualifying-benefit routes can override) and savings under £16,000. It funds an insulation plus low-carbon heating package at no cost. You apply through the gov.uk apply page or your local authority, not your energy supplier.
I'm a private renter, can I get any of these grants?
Yes, in several cases. ECO4 and the Warm Homes: Local Grant both cover private rented homes (with landlord permission for the works), and GBIS is available to tenants too. The landlord usually has to consent because the measures are physical building improvements, and under Minimum Energy Efficiency Standards landlords already can't let the worst-rated properties. We can provide a landlord consent template and explain the MEES angle to your landlord.
How do I actually apply, and how do I avoid scams?
Use the official gov.uk eligibility checker for the relevant scheme, contact one of the obligated energy suppliers (for ECO4/GBIS), your local council (for the Warm Homes: Local Grant), or an MCS-certified, TrustMark-registered installer (for the Boiler Upgrade Scheme). Legitimate schemes never cold-call demanding upfront payment, and BUS grants are deducted at source, you never receive or hand over the money. If a 'free grant' offer pressures you on the doorstep or asks for bank details up front, it's a scam.
Can businesses and commercial landlords get energy grants?
The big domestic schemes (ECO4, GBIS, Local Grant) are largely for homes, but businesses aren't left out. The Boiler Upgrade Scheme covers small businesses replacing a fossil-fuel system. Solar PV, heat pumps and battery storage qualify for 100% Annual Investment Allowance, up to 25% effective tax relief in year one. With Minimum Energy Efficiency Standards tightening towards EPC B for commercial lettings by 2030, funding the upgrade now via capital allowances is usually cheaper than waiting for an enforcement deadline.
What's the difference between a grant and the new Warm Homes finance route?
Grants (ECO4, GBIS, Boiler Upgrade Scheme, Warm Homes: Local Grant) reduce or remove the cost and don't have to be repaid. The Warm Homes Plan also introduces a multi-billion-pound finance route offering low or zero-interest loans for households who don't qualify for grants, so if your income is too high for a fully funded package but a heat pump install costs more than the BUS grant, low-cost finance can bridge the gap. We help you see which combination of grant and finance applies.
Will insulation or a heat pump actually lower my bills?
Insulation almost always does, loft and cavity-wall insulation are among the most cost-effective measures and cut heat loss immediately. Heat pumps lower carbon emissions and, when paired with a well-insulated home and the right tariff, can lower running costs versus oil or LPG; versus mains gas the saving depends on tariffs. That's why schemes are fabric-first: insulating before installing a heat pump (under PAS 2035) is what makes the heat pump efficient and the bills lower.
Do I need planning permission for grant-funded measures?
Usually not. Most loft, cavity-wall and internal insulation, and most air source heat pumps, fall under Permitted Development. External (solid) wall insulation can need planning in conservation areas, and heat pumps have siting and noise conditions under MCS 020. Listed buildings need Listed Building Consent for almost any external change. A PAS 2035 retrofit assessor flags any consents needed before work starts.
What standards protect me when work is done under these schemes?
Government-funded retrofit follows TrustMark lodgement and the PAS 2035/2030 framework: a qualified retrofit assessor surveys the home, a coordinator plans measures in the right order, and the completed work is registered with TrustMark and guaranteed. Heat pumps must be MCS-certified, and installers must belong to a consumer code (RECC or HIES). This is your route to redress if anything goes wrong, always check the installer's TrustMark and MCS registration before signing.