Warm Homes Local Grant: Energy-Saving Upgrades & Funding Explained

The Warm Homes Local Grant scheme enables eligible homeowners and renters in England to access up to £15,000 per category for crucial energy efficiency and low-carbon heating improvements, helping to raise homes to an EPC rating of C while reducing bills and carbon emissions. This new government scheme makes it easier for households to cut energy costs, improve living conditions, and contribute to the UK’s wider sustainability goals.

What Is the Warm Homes Local Grant?

Launched in 2025, the UK government’s Warm Homes Local Grant provides £500 million in funding across local authorities to support low-income households. It’s designed to help households living in privately owned or rented homes with poor energy performance (EPC ratings of D, E, F, or G). The grant is part of the broader Help to Heat programme and aims to tackle fuel poverty, create warmer homes, and help achieve the national Net Zero 2050 goals.

As part of the scheme, local councils work closely with residents to assess their homes and recommend the most effective energy-saving improvements. By tailoring each package of upgrades to the needs of the property, councils help create warmer, more affordable, and more sustainable homes across local communities.

Energy Performance Measures Explained

Energy performance upgrades focus on preventing heat loss and boosting thermal efficiency. Funded improvements include:

• Cavity wall insulation 
• Loft insulation 
• Internal wall insulation
• Double glazing
• Draught-proofing

Each of these measures has been proven to reduce heat loss, reduce energy bills, and improve overall home comfort. Loft and cavity wall insulation, for example, can help retain up to 35% more heat inside your home, while modern double glazing blocks draughts and reduces external noise. Draught-proofing is a simple step that can result in immediate savings by sealing gaps around doors and windows.

Low Carbon Heating Upgrades

​​Low-carbon heating is vital for homes aiming to achieve a C-rated EPC and beyond. The grant provides funding for:

• Air source heat pumps: These renewable systems extract ambient air heat, delivering efficient, low-emission warmth and are often rated 3 times more efficient than traditional boilers.
• Solar panels: Generating electricity on-site reduces dependency on fossil fuels and lowers annual energy costs.

When used together, air source heat pumps and solar panels can make your home warmer, cheaper to run, and less dependent on rising energy prices.

Did you know? 💡 Upgrading to an air source heat pump can cut greenhouse gas emissions from home heating systems by over 60% compared to older systems.

Grant Funding: How Much Can You Get?

​Eligible households can receive up to £15,000 for energy performance measures and up to £15,000 for low-carbon heating upgrades, after an initial home assessment by the local council. This ensures that properties achieve at least an EPC rating of C, improving energy efficiency and comfort while supporting national carbon-reduction targets.

Warm Homes Local Grant: Who’s Eligible?

Eligibility is based on household income, property ownership, and EPC rating. Homes in England that are owner-occupied or privately rented, with an annual household income below £36,000 (or in designated postcodes/with benefit recipients), are generally prioritised. The assessment ensures improvements provide maximum benefit to those facing the highest levels of fuel poverty.

How To Apply for the Warm Homes Local Grant?

Ready for a warmer, more efficient home? Contact Next Energy to register your interest in the Warm Homes Local Grant and learn how we can help you access funding and maximise your property’s comfort. Take the first step towards lower bills and a more sustainable future.

And if it turns out you’re not eligible, don’t worry! We can also advise on other trusted schemes that might be a better fit for your situation.