Warm Homes: Local Grant — a guide for local authorities

The Warm Homes: Local Grant is a UK Government-funded fuel poverty scheme delivered by local authorities in England. The scheme will improve the energy efficiency of homes and increase low carbon heating installations for low-income households.

Delivery of the scheme is expected to start in April 2025 and will allocate £500 million to 73 projects across 270 local authorities over the next three years.

The scheme is part of the UK Government’s broader Warm Homes Plan, which we anticipate will aim to tackle fuel poverty and support decarbonising homes. It’s expected to be published later in 2025.

The scheme replaces the previous Local Authority Delivery and Home Upgrade Grant programmes. It has streamlined the funding model to ensure broader participation and easier access to upgrades for both on-gas and off-gas homes.

All eligible local authorities that submitted an expression of interest in the scheme have been allocated funding. See a full list of local authorities who will receive the Warm Homes: Local Grant funding.

Local authorities within the West Midlands Combined Authority (WMCA) and the Greater Manchester Combined Authority (GMCA) will receive a separate allocation of funding. This is part of the UK Government’s commitment to the pilots announced in the trailblazer devolution deals.

The Warm Homes: Local Grant will provide energy performance upgrades and low carbon heating via local authorities, to households that:

• are in England
• are low income and meet one of the following criteria:
  • gross annual household income of £36,000 or less
  • those living in deprived areas (ranked in the lowest income deciles)
  • those already receiving means-tested benefits (like Universal Credit or Housing Benefit)
• have an Energy Performance Certificate (EPC) between D and G
• are privately owned (owner occupied or privately rented)

The scheme will be open to households both on the gas-grid (heated by mains gas), and off the gas-grid (heated by fuels such as electricity, oil, coal, or liquid petroleum gas).

Landlords can also apply for funding to upgrade properties, which will reduce bills for tenants in the private rented sector. Landlords will receive full funding for the first property and 50% funding for additional properties.

The Warm Homes: Local Grant is expected to allow for two main types of upgrades:

• Energy performance upgrades. Up to £15,000 per property to improve energy performance through measures such as insulation, draughtproofing and double or triple glazing, as well as solar PV and battery storage. These improvements aim to increase the property’s EPC rating, with the target being to achieve Band C where possible.
• Low-carbon heating. An additional £15,000 to install low carbon heating systems, such as air and ground source heat pumps. These systems will be encouraged in homes not connected to the gas grid and heated by more carbon-intensive fuels like oil or coal.

Both cost caps — £15,000 for energy performance measures and £15,000 for low-carbon heating — are intended to be averaged across a project but must be met by the end of the project.

Households will be able to check their eligibility when the scheme opens for delivery in April 2025 using an online tool on GOV.UK.

If a household is eligible, their application will be sent to their local authority or their official contractor, who will handle the next steps.

Households can also contact their local authority directly for support.

If you’re a local authority looking for support to deliver funding to the right people through the Warm Homes: Local Grant, then we can help.

Our digital tool Homewise helps your residents understand what home energy improvements they need to make. All they have to do is answer a few questions about their home and they’ll get a personalised plan. They can then use this information to apply for measures through the grant.

Local authorities can also get data on how residents are using Homewise, making it easy to see the measures they’re interested in.

If you’re interested in how our Homewise tool or other services can help you deliver the Warm Homes: Local Grant, get in touch.