What is the Warm Homes Plan 2026?
On January 20, 2026, the UK government announced what they're calling the "biggest home upgrade plan in British history." The Warm Homes Plan represents a £15 billion investment to help families reduce their energy bills and make their homes warmer, more comfortable, and more energy-efficient.
This isn't just another scheme - it's a comprehensive programme designed to address the UK's housing energy crisis head-on. With up to 5 million homes set to benefit, this could be the single largest improvement to British housing stock in generations.
Key Point:
The Warm Homes Plan is NOT ECO5. ECO5 was officially cancelled in the 2025 Autumn Budget. This is a completely new programme that builds upon and expands the previous ECO4 scheme.
The programme operates through three main pillars: direct support for low-income families who can't afford home improvements, universal loans and grants for those who can contribute, and new renter protections ensuring landlords meet minimum energy efficiency standards.
£15 Billion Investment: What's Included?
The £15 billion investment covers a comprehensive range of home improvements, all designed to reduce energy consumption and lower bills. Here's exactly what's available under the Warm Homes Plan:
Replace your old gas boiler with a modern, efficient heat pump. Can reduce heating costs by up to 50% compared to old systems.
Cavity wall, solid wall, and external wall insulation to stop heat escaping from your home.
Up to 25% of heat is lost through an uninsulated roof. Free loft insulation prevents this waste.
Generate your own electricity and reduce reliance on the grid. Solar can cut electricity bills significantly.
Smart thermostats and heating controls help you manage energy use more efficiently.
Stop cold coming up from below. Particularly effective in older properties with suspended floors.
Warm Homes Plan Eligibility: Who Qualifies?
The Warm Homes Local Grant has clear eligibility criteria. Here's exactly what you need to qualify for FREE home improvements:
Eligibility Requirements
Household Income: £36,000 or Less
Your total household income must usually be £36,000 per year or less. Higher earners may qualify in designated postcode areas or if receiving specific benefits.
Property Location: England Only
The Warm Homes Local Grant currently applies to properties in England. Scotland, Wales, and Northern Ireland have separate schemes.
Property Ownership: Privately Owned
Must be owned by you (homeowner) or by a private landlord. Council tenants should contact their local authority directly.
EPC Rating: D, E, F, or G
Your property must have an Energy Performance Certificate rated D, E, F, or G. Properties rated A, B, or C are generally too efficient to qualify.
Warm Homes Plan vs ECO4: Key Differences
Many people are confused about the relationship between ECO4 and the new Warm Homes Plan. Here's a clear comparison:
| Feature | ECO4 | Warm Homes Plan |
|---|---|---|
| End Date | March 31, 2026 | Ongoing (new programme) |
| Eligibility | Benefits-based (qualifying benefits) | Income-based (£36,000 threshold) |
| Investment | Part of ECO programme | £15 billion dedicated fund |
| Solar Panels | Limited availability | Included as standard |
| Renter Protections | Limited | Dedicated pillar |
Important: Apply for ECO4 NOW
ECO4 ends March 31, 2026. If you qualify for ECO4 benefits, apply immediately. You can still benefit from the Warm Homes Plan later, but ECO4 funding is limited and ending soon.
How to Apply for Warm Homes Plan Grants
Applying for the Warm Homes Plan is straightforward. Here's the step-by-step process:
Submit Your Application Online
Visit the official Warm Homes Local Grant portal or use our eligibility checker to start your application. You'll need to provide basic information about your household income and property.
Council Contact Within 10 Working Days
Your local council will contact you within 10 working days to gather more information and verify your eligibility. They may ask for proof of income or property ownership.
Home Survey Arranged
A qualified assessor will visit your property to determine which improvements are suitable. They'll check your current heating system, insulation levels, and overall energy efficiency.
Free Installation
Once approved, your council organizes and funds all work. Accredited installers complete the improvements at no cost to you. Note: landlords may need to contribute to some improvements.
Need Help Applying?
For assistance with your application, call the Warm Homes support line:
0800 098 7950
Monday-Friday 8am-6pm, Saturday 9am-12pm
Heat Pump Grants: £7,500+ Available
Heat pumps are a key focus of the Warm Homes Plan. These efficient systems extract heat from the air (or ground) to warm your home, using far less energy than traditional gas boilers.
Under the Warm Homes Local Grant, eligible households can receive a FREE air source heat pump. If you don't qualify for the full free grant, you may still benefit from the Boiler Upgrade Scheme (BUS), which provides £7,500 towards heat pump installation costs.
Air Source Heat Pumps
- Extract heat from outside air
- Work in temperatures as low as -15°C
- 300%+ efficiency (3kW heat for 1kW electricity)
- Lower running costs than gas boilers
Potential Savings
- Save £800+ annually vs old boiler
- Reduce carbon footprint by 2+ tonnes/year
- Increase property EPC rating
- Boost property value by up to 10%
Free Insulation Grants 2026
Insulation is often the most cost-effective home improvement. The Warm Homes Plan provides FREE installation of multiple insulation types:
Up to 25% of heat escapes through an uninsulated roof. Loft insulation is one of the cheapest and most effective improvements, typically saving £200-£400 annually.
Most homes built after 1920 have cavity walls. Filling these cavities with insulation can save £200-£400 annually and is usually completed in a few hours.
Older homes with solid walls lose the most heat. Internal or external solid wall insulation can save £300-£600 annually, though installation is more involved.
If you have suspended timber floors, underfloor insulation can prevent cold air rising from below, saving £40-£70 annually and improving comfort significantly.
Renter Protections: New Rights for Tenants
One of the three pillars of the Warm Homes Plan focuses specifically on renter protections. This is a significant development for the millions of UK households in rented accommodation.
What This Means for Tenants:
- Minimum EPC Requirements: Landlords will need to meet minimum energy efficiency standards, ensuring tenants live in adequately insulated and heated homes.
- Landlord Obligations: Property owners must make necessary improvements or face penalties. This protects tenants from cold, drafty homes.
- Tenant Applications: Private tenants can benefit from the scheme, though landlord consent is required for property improvements.
If you're a private tenant, speak to your landlord about the Warm Homes Plan. Many landlords welcome free improvements as they increase property value and tenant satisfaction at no cost to them.
Expected Energy Bill Savings
The Warm Homes Plan is designed to deliver real, measurable savings on energy bills. Here's what you can expect:
£300-£500
Annual Savings with Insulation
Loft, cavity wall, and solid wall insulation combined can dramatically reduce heating costs.
£800+
Annual Savings with Heat Pump
Replacing an old gas boiler with an efficient heat pump can slash heating bills.
Lifetime Savings Potential
With a combination of insulation, heat pump, and solar panels, eligible households could save over £10,000 over the lifetime of their improvements - all at zero upfront cost under the Warm Homes Plan.
Success Stories from Our Customers
Here's what homeowners who've already benefited from government energy schemes have to say:
Margaret Thompson
Leeds • Pension Credit recipient
"Hamza helped me through the ECO4 process and the team installed my new boiler completely free. Now I'm paying just £55 a month instead of £140."
Robert Jenkins
Manchester • LA Flex approval
"I only get basic State Pension, but through LA Flex, they approved me. The installation was professional and my heating bills have halved."
Sarah Williams
Birmingham • Universal Credit recipient
"As a single mother, this scheme has been life-changing. Free boiler, professional installation, and my energy bills are now manageable."