The Warm Homes Plan is the UK government’s biggest ever programme for upgrading homes. Launched on 21 January 2026, it commits £15 billion over five years to improve up to five million homes by 2030. It replaces the old system of energy company obligations — including ECO4, which closes permanently at the end of 2026 — with a broader framework combining free upgrades for lower-income households, grants for heat pumps, and new low-interest loans for everyone else.
This guide explains what the plan actually contains, who qualifies for what right now, what is coming in 2027, and what it means if you are a homeowner, renter, or landlord.
If you want to know what grants are open today, the energy grants hub covers all currently active schemes with eligibility details and application links.
What the Warm Homes Plan is trying to do
The plan has three stated goals: cut household energy bills, reduce the UK’s dependence on imported gas, and lift one million families out of fuel poverty by 2030. It is the government’s answer to the structural problem exposed by the 2021–2022 energy crisis — that UK homes are too inefficient and too dependent on global wholesale gas prices to be insulated from price shocks.
Prime Minister Keir Starmer described it as a “turning point” and promised a “rooftop revolution” that triples the number of homes with solar panels. Energy Secretary Ed Miliband framed it as an accessibility programme: “not just for the wealthiest.” The plan is also positioned as a jobs programme, with the government projecting growth in the energy efficiency workforce from around 60,000 in 2023 to up to 240,000 by 2030.
The £15 billion is split across three main funding routes: direct grants and free upgrades for lower-income households, continued grant funding for heat pumps through the Boiler Upgrade Scheme, and a new low-interest consumer loan scheme for households who do not qualify for free upgrades. The loan scheme is the element not yet available — it is expected to launch in April 2027.
What is available now in 2026
The Warm Homes Local Grant: free upgrades for lower-income households
The Warm Homes Local Grant is the main active element of the plan for most eligible households. It is delivered through local councils in England and provides up to £30,000 in fully funded improvements — insulation, heat pumps, solar panels, batteries, and other efficiency measures — with no upfront cost to the household.
To qualify you need a household income under £36,000 or to be receiving a means-tested benefit such as Universal Credit or Pension Credit. Your home also needs an EPC rating of D to G. Both homeowners and private tenants can apply, though tenants need their landlord’s agreement. More than 97% of eligible councils in England have funding allocated. London has temporarily paused new applications while processing existing demand, with reopening expected in spring 2026.
Equivalent schemes run in the devolved nations: the Optimised Retrofit Programme in Wales, Warmer Homes Scotland, and the Affordable Warmth Scheme in Northern Ireland.
Check eligibility and apply on GOV.UK
The Warm Homes Social Housing Fund
Alongside the Local Grant, the Warm Homes Social Housing Fund provides £1.29 billion for social housing providers to upgrade properties below EPC Band C. It is delivered directly to housing associations and local authority landlords rather than individual tenants. If you are a social housing tenant in an inefficient property, your landlord may already be working through this fund. The fund was oversubscribed by more than £1 billion when applications opened, indicating the scale of need.
The Boiler Upgrade Scheme: heat pump grants for all homeowners
The Boiler Upgrade Scheme has been extended to 2030 as part of the Warm Homes Plan, with a budget of £295 million confirmed for 2025/26 and a total allocation of £2.7 billion across the programme. Unlike the Local Grant, it is not means-tested — any homeowner in England or Wales replacing a fossil fuel heating system can apply regardless of income.
The grants currently available are:
- £7,500 toward an air source or ground source heat pump (air-to-water systems)
- £2,500 toward an air-to-air heat pump — newly introduced in 2026, covering systems that provide both heating and cooling
- £5,000 toward a biomass boiler — rural properties not connected to the gas grid only
A significant change for 2026: the previous rule requiring all outstanding insulation recommendations on your EPC to be completed before accessing the grant has been removed. You still need a valid EPC, but you no longer have to clear insulation recommendations first. This opens the scheme to a wider range of properties.
The process is installer-led. You find an MCS-certified installer, they apply for the grant voucher on your behalf, and the amount is deducted from your invoice before you pay. You do not apply directly to Ofgem. The scheme runs to 2030.
Check eligibility on GOV.UK | Find an MCS-certified installer
What is coming in 2027
The consumer loan scheme
The most significant element not yet live is a £1.7 billion low or zero-interest loan scheme for households who do not qualify for free upgrades — the “able to pay” market. It is expected to launch in April 2027 and will cover solar panels, battery storage, heat pumps, and insulation. The government is also consulting on whether loans could be extended to private and social landlords.
The intention is that monthly loan repayments will be offset by energy bill savings, making the upgrade cost-neutral or better over time. Details on interest rates, loan terms, and application processes are expected to be confirmed later in 2026. Consumer groups have warned that previous green loan schemes — notably the Green Deal — failed because the terms were not attractive enough. The government has acknowledged this and says the new scheme will be designed to avoid those failures.
The Warm Homes Agency
A new Warm Homes Agency (WHA) is being created to act as the single delivery body for the plan. It brings together functions currently spread across Salix, DESNZ, and parts of Ofgem. From April 2027 it is expected to provide impartial advice through an online service and a national phone line — a single front door for home upgrade guidance that does not currently exist. It will also take on quality assurance and consumer protection functions for the installation industry, addressing what the plan acknowledges is a significant problem: audits found that 92% of external wall insulation installations under ECO4 and the Great British Insulation Scheme had at least one major technical non-compliance.
The ECO4 replacement
ECO4 closes on 31 December 2026 and will not be replaced by an ECO5. From 2027/28 onwards, the Warm Homes Local Grant and Social Housing Fund are expected to be consolidated into a single low-income scheme as the Warm Homes Agency takes over delivery. If you are currently eligible for ECO4 support, acting before the end of 2026 is in your interest — the replacement scheme will operate under a different framework and the transition period may leave some households in a gap before new funding flows.
What it means for renters
The Warm Homes Plan introduces the most significant changes to private rented sector energy standards in a generation. All private rented properties in England will need to meet EPC Band C across two metrics by October 2030. The current minimum standard is EPC E, so this is a substantial uplift. The cost cap — the maximum a landlord can be required to spend before claiming an exemption — has been raised to £10,000 per property, up from £3,500.
The government projects this will lift around 500,000 renting families out of fuel poverty. If you are a private tenant in a cold, inefficient home, your landlord will be legally required to upgrade it to EPC C before October 2030 or register a valid exemption. Improvements made from October 2025 onwards count toward the cost cap, so some landlords are already beginning work.
In practice, this means renters in D, E, F, or G rated homes should expect their landlord to carry out works — insulation, heating upgrades, or both — at some point before 2030. If your landlord is unresponsive to requests about energy efficiency, documenting the issue now creates a record that may be useful later.
What it means for landlords
Landlords with properties below EPC Band C face a clear legal deadline of October 2030 to upgrade or register an exemption. The cost cap is £10,000 per property. BUS grants are available to landlords for heat pump installations. Improvements made from October 2025 count toward the cost cap. The government has indicated that loan eligibility may be extended to landlords as the Warm Homes Fund develops, but this has not been confirmed.
Industry bodies including Propertymark and the NRLA have warned that the timeline is ambitious and that many older or hard-to-treat properties will struggle to reach EPC C within the cost cap. The government has said phased and flexible delivery will be available, but details on exemptions and enforcement remain to be confirmed.
What it means for new builds
The Future Homes Standard, expected to take effect in early 2027, will require all new builds to be fitted with solar panels and clean heating as standard. This effectively ends gas boiler installation in new homes from 2027 onwards, though no phase-out date for existing boiler replacements has been set.
The fabric-first principle and what to do now
The Warm Homes Plan’s guidance emphasises improving the fabric of the home — insulation, draught-proofing, windows — before installing clean energy technology. A heat pump installed in a poorly insulated home will underperform and cost more to run than one installed after fabric improvements. The plan’s own analysis shows that insulation alone can cut bills by hundreds of pounds before any heating system change is made.
If you are eligible for the Warm Homes Local Grant, applying now means improvements are made before the July 2026 price cap is expected to rise. For households approaching the question from a fabric-first direction, the house cold diagnostic helps identify where your home is losing heat, and the complete guide to keeping a UK home warm for cheap covers the improvements with the best return for the typical UK property.
Frequently asked questions
What is the Warm Homes Plan?
The Warm Homes Plan is the UK government’s £15 billion programme to upgrade up to five million homes by 2030. Launched on 21 January 2026, it aims to cut energy bills, reduce fuel poverty, and reduce the UK’s dependence on imported gas. It combines free upgrades for lower-income households through the Warm Homes Local Grant, heat pump grants through the Boiler Upgrade Scheme, and a new consumer loan scheme expected to launch in April 2027.
Who is eligible for the Warm Homes Plan?
Eligibility varies by scheme. The Warm Homes Local Grant — the free upgrade route — requires a household income under £36,000 or receipt of a means-tested benefit, plus an EPC rating of D to G. The Boiler Upgrade Scheme has no income requirement: any homeowner in England or Wales replacing a fossil fuel system can apply for up to £7,500 toward a heat pump. The consumer loan scheme launching in 2027 is expected to be available to a broader range of households regardless of income.
What is replacing ECO4?
There is no direct like-for-like replacement. ECO4 closes on 31 December 2026 and will not be followed by an ECO5. From 2027, the Warm Homes Plan replaces the old energy company obligation model with a government-funded delivery framework. The Warm Homes Local Grant is the current active route for lower-income households. From 2027/28 the Local Grant and Social Housing Fund are expected to be consolidated into a single low-income scheme overseen by the new Warm Homes Agency. If you think you are eligible for ECO4 support, acting before the end of 2026 is in your interest.
When do the Warm Homes Plan loans start?
The low or zero-interest consumer loan scheme is expected to launch in April 2027. It will cover solar panels, battery storage, heat pumps, and insulation for households who do not qualify for free upgrades. Details on interest rates and loan terms are expected to be confirmed later in 2026. The loans are not yet available and no applications are currently being taken. Be cautious of any company claiming to offer early access to Warm Homes Plan loans — these are not legitimate.
Does the Warm Homes Plan cover renters?
Yes, in two ways. Lower-income private tenants can apply for the Warm Homes Local Grant with their landlord’s agreement. Separately, all private rented properties must meet EPC Band C by October 2030, meaning landlords are legally required to carry out efficiency improvements regardless of whether the tenant qualifies for grant support. Social housing tenants may also benefit through the Warm Homes Social Housing Fund, which is delivered through their landlord.
Does the Warm Homes Plan cover Scotland, Wales, and Northern Ireland?
The Warm Homes Local Grant and Boiler Upgrade Scheme cover England and Wales. Scotland has its own equivalent — Warmer Homes Scotland — and Northern Ireland has the Affordable Warmth Scheme. The Warm Homes Social Housing Fund covers England only. The consumer loan scheme launching in 2027 is currently confirmed for England, with devolved equivalents expected but not yet confirmed.
Will the Warm Homes Plan force me to remove my gas boiler?
No. The Warm Homes Plan does not include a phase-out date for existing gas boiler replacements. There is no requirement to remove a working boiler. The plan encourages the switch to heat pumps through grants and incentives, but this is voluntary for existing homeowners. New builds from 2027 will be required to install clean heating under the Future Homes Standard, but this does not affect existing properties.
Is the Boiler Upgrade Scheme part of the Warm Homes Plan?
Yes. The Boiler Upgrade Scheme has been extended to 2030 and integrated into the Warm Homes Plan framework. It offers £7,500 toward an air-to-water heat pump, £2,500 toward an air-to-air heat pump, and £5,000 toward a biomass boiler for eligible rural properties. It is not means-tested and is open to any homeowner in England or Wales replacing a fossil fuel system.
