What Government Grants Are Available For Homeowners?
Key Takeaways
- UK household bills remain significantly higher than before 2021 despite some crisis relief measures.
- The Boiler Upgrade Scheme offers up to £7,500 for installing cleaner, low-carbon heating alternatives.
- BUS is available in England and Wales and runs until December 2025 for applicants.
- The Winter Fuel Allowance gives pensioners £100–£300 annually, paid directly into their bank accounts.
- Ofgem’s Energy Redress Scheme supports households via charities, offering fuel vouchers and efficiency advice.
UK homeowners have seen some relief since the height of the energy crisis in 2022, but the fact remains that bills are still significantly higher than they were before 2021.
According to Dhara Vyas, Deputy Chief Executive at Energy UK,
“The energy crisis continues to cast a long shadow with bills still significantly higher than before its onset and customer debt now at a record £3.7bn.”
Many homeowners who are currently trying to clear their energy debt will be interested in applying for government grants for homeowners.
But what grants are available, and what are the eligibility requirements?
What Heating Grants Are Available For UK Homeowners?
Currently, there are multiple government-funded heating grants for UK homeowners. The main government grants available are for upgrading energy efficiency, installing new low-carbon heating systems, and reducing heating bills.
Depending on the grant you’re applying for, there will be set requirements that need to be met.
Energy Efficiency And Low-Carbon Heating Grants
For homeowners seeking to make their homes warmer, greener, and more energy-efficient, the UK government offers several schemes to assist them.
These schemes include:
Boiler Upgrade Scheme (BUS)
For homeowners looking to move away from their older gas or oil heating systems, BUS is the best option.
Currently, the scheme is only available to homeowners in England and Wales, who could receive up to £7,500 toward the cost of installing a low-carbon alternative such as:
- Air source heat pumps
- Ground source heat pumps
- Biomass boilers (in rural locations)
The scheme runs until 31 December 2025, giving households just under a year and a half to apply.
BUS’s primary goal is to encourage more people to switch to cleaner heating systems that not only reduce carbon emissions but also decrease long-term reliance on fossil fuels.
During 2023 and 2024, the UK government increased the incentive to switch to a more environmentally friendly option by increasing the grant from £5,000 to £7,500 and simplifying the rules.
For households eager to future-proof their homes and make them more sustainable, BUS offers an opportunity to do so with significant government support.
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Warm Homes: Local Grant
For homeowners who live in a property that is cold, draughty, and expensive to heat, the Warm Homes: Local Grant can be a game-changer.
Launched in April 2025, the scheme aims to help households with low incomes who are living in a property with a poor energy rating. This rating is assessed in a document called the Energy Performance Certificate (EPC), which ranks a building’s efficiency from the most efficient rating of A to the least efficient rating of G.
To qualify for assistance, your home’s EPC rating must be between D and G. If you can’t find your home’s EPC rating, it is valid for 10 years and is digitally stored online.
What makes this grant especially attractive is that it’s completely free to homeowners in England.
There’s no need to put down any money yourself, and funding is provided directly through your local authority in England. Eligible households get the upgrades without worrying about hidden costs.
Work covered by the Warm Homes: Local Grant is:
- Insulation
- Solar panels
- Low-carbon heating
The scheme not only helps reduce energy bills but also tackles fuel poverty and lowers carbon emissions. It’s a win-win for households and the environment.
Applications for this grant must be made via your local council’s website or GOV.UK.
Great British Insulation Scheme (ECO+)
According to the Energy Saving Trust, around 25% of heat can be lost through an uninsulated roof, and a similar percentage via windows and doors.
The Great British Insulation Scheme (ECO+) is designed to fix this heat loss issue, helping households across England, Wales, and Scotland by providing insulation.
Eligible households can receive essential insulation upgrades for their homes’ loft, walls, and floors. Completing these simple insulation changes in a household could save you £300–£400 every year.
The scheme’s demographic is far broader, and if your home falls into the qualifying council tax bands (A–D in England, A–E in Wales and Scotland) and has a lower EPC rating, you may qualify.
Currently, ECO+ is scheduled to run until March 2026.
Energy Company Obligation (ECO4)
One of the UK’s longest-running energy efficiency programmes, the Energy Company Obligation (ECO4) is funded directly by the country’s biggest energy suppliers.
Instead of giving out money, the scheme provides free or heavily subsidised home improvements to households that need them most.
The support ECO4 makes available to eligible households includes:
- Insulation upgrades that include replacing older loft and cavity wall insulation with more advanced solid wall insulation.
- Heating improvements, like replacing an old boiler or switching to a more efficient system.
- Additionally, ECO4 could install renewable energy measures, such as heat pumps or solar panels.
ECO4 is a programme designed for vulnerable homes, with a focus on low-income households. That means if you’re struggling with high energy bills, receiving certain benefits, or living in a property that’s expensive to heat, you may qualify. The goal is twofold: reduce fuel poverty and cut the UK’s overall carbon emissions by making homes warmer and more efficient.
To qualify for help for ECO4, you need to meet the following requirements:
- What type of homeowner are you? Are you an owner-occupier or a private tenant (social housing may qualify in limited cases)?
- What is your property’s EPC rating? Homes with low EPC ratings (typically D–G) qualify.
- Does someone in your home receive benefits?
However, it’s worth noting that the scheme is also flexible. In some cases, local authorities or energy suppliers can extend eligibility under what’s known as the “flexible eligibility” or LA Flex route. This allows councils to nominate households that don’t fit the usual benefit criteria but are still at risk of fuel poverty.
ECO4 also eliminates a significant amount of the hassle associated with upgrades.
Instead of applying for a cash lump sum, you work with an approved installer, and the costs are covered through the scheme. For many households, that means getting thousands of pounds’ worth of work done without paying a penny upfront.
Help With Paying For Energy Bills
For homeowners who are not eligible for heating upgrades, you can apply for direct help with your energy bills.
Warm Home Discount
For homeowners worried about their winter energy bills, you’ll be pleased to learn about the Warm Home Discount programme.
It’s a £150 rebate that gets taken directly off your electricity bill between October and March.
You may be pleased to learn that for most people, the discount is applied automatically if you qualify.
Eligibility usually depends on:
- Being on certain means-tested benefits (like Pension Credit or Universal Credit).
- Living in a home that’s considered expensive to heat, based on property data.
In most cases, there’s no need to apply for the grant as your energy supplier and the Department for Work and Pensions work together behind the scenes to decide if you’re eligible.
If you have qualified, you’ll see the discount appear on your bill or as a credit on your account.
Winter Fuel Allowance
This programme aims to help pensioners who are struggling with their heating costs. Depending on your age and circumstances, you could receive between £100 and £300 each year, paid directly into your bank account.
Currently, those aged 66 and over, as well as pensioners with an annual income under £35,000, are the most likely to be eligible for help.
The payment usually happens between November and January, right when heating bills start to climb. Funding for this programme comes from the government.
Ofgem Energy Redress Scheme
Rather than direct applications, this grant is distributed via charities and local organisations.
It funds:
- Fuel vouchers
- Energy efficiency advice
- Small-scale home improvements
If you’re struggling, charities can help connect you to the support you need.
For those looking to upgrade their home’s heating system via flexible finance options, WarmZilla is here to help homeowners across the UK.
Use WarmZilla’s Flexible Finance Options
If you’re worried that you can’t afford to upgrade your home’s heating system, because you don’t have the means to make the big upfront payments, WarmZilla can help.
With WarmZilla’s flexible finance options, UK homeowners can spread the cost of a new boiler, heating system, or energy-efficient upgrade into manageable monthly instalments.
You can check your eligibility for WarmZilla finance today via our easy-to-use Boiler Finance Calculator.
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Price of BoilerFinance available on all orders between £1,000 and £25,000
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Select a Representive Example:
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Please note the above quotation is an indicative cost and actual monthly payments may vary by +/- 2p per month. Only available to UK residents over 18, subject to terms and conditions. To apply for finance, please add the product to your cart, proceed through checkout and select 'Apply For Finance' as your payment option where you can complete the application form online. Credit is provided by Novuna Personal Finance, a trading style of Mitsubishi HC Capital UK PLC, authorised and regulated by the Financial Conduct Authority. Financial Services Register no. 704348. The register can be accessed through http://www.fca.org.uk
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