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What is the Warm Homes: Local Grant?

The UK government will launch the Warm Homes: Local Grant on April 1, 2025, to improve energy efficiency and reduce energy bills for low-income households in England. The scheme allocates £500 million to 270 local authorities over three years, enabling them to deliver energy performance upgrades and low-carbon heating solutions directly to eligible homes.

By focusing on retrofitting measures such as insulation, solar panels, and heat pumps, the grant aims to make homes more energy-efficient while helping households save money and reduce their carbon footprint.

Objectives of the Warm Homes: Local Grant

The main objectives of the scheme are:

  1. Improve energy efficiency in homes with poor EPC ratings (D to G)

  2. Reduce household energy bills and alleviate fuel poverty

  3. Lower carbon emissions from residential properties

  4. Enhance overall home comfort and health outcomes

  5. Support the UK’s broader goals of tackling climate change and achieving net-zero emissions

Participating Local Authorities

All eligible local authorities that completed and submitted an Expression of Interest (EOI) form by December 1, 2024, have been allocated funding. The scheme covers 73 projects across 270 local authorities in England.

Local authorities within the West Midlands Combined Authority (WMCA) and the Greater Manchester Combined Authority (GMCA) have received separate funding allocations as part of a devolution program. See a full list of local authorities who will receive the Warm Homes: Local Grant funding

Who is Eligible for the Grant?

To be eligible for the Warm Homes Local Grant, households must meet the following criteria:

  1. Location: The property must be in England.

  2. Energy Performance: The home must have an Energy Performance Certificate (EPC) rating between D and G.

  3. Property Type: The property must be privately owned (owner-occupied or privately rented). Park homes are also eligible if they are the permanent residence and have an equivalent energy performance to EPC bands D-G.

  4. Income Requirements: Households can qualify through one of these routes:

    a. Means-tested Benefits: Receiving benefits such as Universal Credit, Pension Credit, Housing Benefit, JSA, ESA, Income Support, or Working/Child Tax Credits.

    b. Income Threshold: Gross annual household income below £36,000.

    c. Flexible Eligibility: Meeting at least two of the following:

    • Receiving a Council Tax reduction on grounds of low income

    • Having a long-term health condition affected by a cold home

    • Receiving free school meals

    d. Postcode-based Eligibility: Living in a postcode within Income Deciles 1-2 of the Indices of Multiple Deprivation (IMD) index.

  5. Fuel Type: All fuel types (both on gas and off gas grid) are eligible.

  6. Private Landlords: The scheme allows full funding for one eligible property, with a 50% cost contribution required for additional properties.

  7. Social Housing: Generally ineligible, except for in-fill purposes only, capped at 10% of a project’s total homes treated, with a 50% cost contribution required.

  8. Savings/Capital Limit: Some sources mention a limit of £50,000 for owner-occupiers, above which they would not be eligible.

Note:

  • New build and self-built homes that have not been previously occupied are not eligible for this grant.

  • The scheme is set to begin delivery in 2025.

  • Council Tax band restrictions (A-D) may apply in some areas but are not universally enforced.

Types of Upgrades Covered

The scheme covers a wide range of energy-saving upgrades, including:

  • Insulation (loft, cavity wall, solid wall, floor)
  • Solar panels
  • Air source heat pumps
  • Smart heating controls
  • Double or secondary glazing
  • Energy-efficient doors
  • Improved ventilation

Eligibility Notification

The scheme has not yet opened for applications. Households interested in the grant should contact their local authority or check official government websites for updates on when and how to apply. The scheme is expected to run for 3 to 5 years starting from April 1, 2025.

How FreeInsulation Can Help?

FreeInsulation helps homeowners with the Warm Homes: Local Grant by providing information and guidance on the scheme. We assist in understanding eligibility and support the application process. Our team connects eligible households with approved installers and offers additional resources on energy efficiency and insulation options.

This makes it easier for homeowners to access and benefit from the grant, improving their home’s energy efficiency and reducing their energy bills.