Warm Homes Plan 2027: The £15bn Scheme Replacing ECO4

The Warm Homes Plan is the UK government's £15 billion energy-efficiency programme that replaces the Energy Company Obligation (ECO) model. It is funded by public investment from the Treasury rather than levies on energy bills. The Plan is published on gov.uk (updated 18 March 2026) and brings together three main strands: the Warm Homes Local Grant (WHLG), the Boiler Upgrade Scheme (BUS), and the Warm Homes Social Housing Fund. Delivery moves from Ofgem to a new Warm Homes Agency.

No. There is no "ECO5". The government has abolished the Energy Company Obligation model entirely — it is not being renumbered. The successor is the Warm Homes Plan, a public-investment programme rather than an energy-supplier obligation. The "ECO5" name circulates online because the previous schemes were numbered ECO1 through ECO4, so people assume ECO5 must be next. It isn't.

The Warm Homes Local Grant (WHLG) — the largest WHP strand for private homeowners — is already delivering as of 2025 via local authority consortiums (e.g. the Tees Valley 4-council consortium has £14m in flight; the Gloucestershire 7-council joint SoI covers another major area). The Boiler Upgrade Scheme has been running since 2022 and continues to run through 2029/30 under the Warm Homes Plan, with the EPC requirement removed in 2025. The new neighbourhood-based scheme that auto-targets the coldest homes launches from April 2027.

Eligibility depends on which strand you apply through. The Warm Homes Local Grant needs EPC band D-G plus at least one of: gross household income £36,000 or less, a postcode in IMD Income Decile 1-2 (the most deprived 20% of England, which qualifies without an income check), or a household member on a qualifying means-tested benefit. The Boiler Upgrade Scheme is open to any owner-occupier (including landlords and second homes) replacing a fossil fuel system with a heat pump or biomass boiler — no income test. Households who qualify for neither can look at the new Warm Homes Fund consumer loan scheme. The Warm Homes Social Housing Fund flows through housing associations and councils.

The Warm Homes Local Grant is the headline WHP strand for private households in England. It is delivered by local authority consortiums under joint Statements of Intent rather than directly by central government. Each consortium has a single private energy provider procured through a framework (e.g. NEPO in the North-East, regional frameworks elsewhere). Eligible households can receive up to £30,000 per home in fully-funded improvements — insulation, glazing, smart controls, boiler replacement and heat pumps where appropriate.

Up to £30,000 per household in fully-funded energy-efficiency improvements — split into two pots, each capped at up to £15,000: one for energy-performance measures (insulation, glazing, draught-proofing, smart controls) and one for low-carbon heating (typically a heat pump). That's roughly four times the typical ECO4 install value of £4,000–£8,000. Each £15,000 pot is an average cap councils work to across their caseload, not a strict per-household limit, so treat it as the working assumption for your own home rather than a guarantee. You pay nothing if you qualify.

The Boiler Upgrade Scheme (BUS) is the heat-pump strand of the Warm Homes Plan, running in England and Wales. It's an upfront capital grant for property owners replacing fossil fuel heating (gas, oil, electric, LPG) with a low-carbon system. BUS is regulated by Ofgem and runs through MCS-certified installers, with total programme funding of roughly £2.7 billion through to 2029/30.

BUS grant rates as of March 2026: £7,500 for air-to-water heat pumps (AWHP) or ground source heat pumps (GSHP), £2,500 for air-to-air heat pumps (AAHP, residential properties only) or heat batteries, and £5,000 for biomass boilers in limited circumstances (off-grid rural properties with no realistic heat-pump option). The grant is paid as an upfront capital deduction by your MCS-certified installer — you don't pay then claim back. DESNZ also removed the requirement for a new EPC before applying, to cut the time and cost of getting a heat pump installed.

BUS funding runs through the Warm Homes Plan period to 2029/30, with total programme funding of roughly £2.7 billion across that window. Treat any specific "extended on [date] with an extra £X" headline you see elsewhere with some caution unless it traces back to a dated DESNZ or Ofgem announcement — the £2.7bn figure is more reliably read as BUS's total programme budget rather than a single top-up.

ECO4 closes on 31 December 2026. From January 2027 onwards the Warm Homes Plan strands fully replace it: the Warm Homes Local Grant takes over the LA Flex (Local Authority Flexible Eligibility) route, the Warm Homes Social Housing Fund replaces the social-housing portion of ECO, and the Boiler Upgrade Scheme covers low-carbon heating. Critically, all three are funded from the Treasury rather than energy-bill levies, so the cost stops appearing on consumer bills.

The Warm Homes Plan is an English government programme, but allocations flow to Scotland and Wales via Barnett Consequentials. In Scotland, the equivalent strand is Warmer Homes Scotland delivered by Home Energy Scotland (freephone 0808 808 2282). In Wales, households apply through the Nest scheme (gov.wales). The Boiler Upgrade Scheme runs directly in England and Wales but NOT in Scotland (where it's superseded by Home Energy Scotland's own programmes).

No — the Warm Homes Plan does not extend to Northern Ireland directly. NI continues to run the Affordable Warmth Scheme administered by NIHE on behalf of the Department for Communities, with a £23,000 income cap and a £7,500 grant cap. From April 2027 the Warm Healthy Homes Fund (WHHF) replaces Affordable Warmth in NI. Barnett Consequentials of the Warm Homes Plan flow into the NI Executive's block grant but are spent on NI-specific schemes.

The Warm Homes Agency is a new public body being set up to deliver the Warm Homes Plan, taking over the role Ofgem played for ECO4. The Agency will manage the WHLG framework, oversee the consolidated low-income capital scheme launching in 2027/28, and run the technical / consumer-protection backbone (PAS 2035 audits, TrustMark integration, complaints). It is expected to be fully operational by April 2027.

Yes, with caveats. For the Warm Homes Local Grant, private rental properties qualify at EPC band E-G (one band stricter than the D-G rule for owner-occupiers). The landlord must consent in writing and cannot raise the rent or evict the tenant for asking — these protections continue from ECO4. For the Boiler Upgrade Scheme, the landlord applies as the property owner (the tenant is not a party). With the forthcoming Minimum Energy Efficiency Standards uplift to EPC C for the private rented sector, landlord uptake is climbing fast.

Not under WHLG or BUS — both are for private sector households. Social housing tenants are covered separately by the Warm Homes Social Housing Fund, which flows through your housing association or local authority rather than to you directly. Ask your housing provider which retrofit programme covers your block. In Northern Ireland, NIHE tenants are similarly covered by separate stock-improvement work, not by Affordable Warmth.

The single fastest route is our 49-second eligibility wizard — it asks for postcode, EPC band, tenure and benefits / income, then routes you to the right strand (ECO4 today, WHLG / BUS from 2027). For WHLG specifically, your local council energy team is the official referral path. For BUS, you contact an MCS-certified heat-pump installer directly and they handle the grant deduction at point of install. Either way the household pays £0 upfront for qualifying work.

Yes for WHLG and ECO4 (both require EPC band D-G for owner-occupiers, E-G for private rental). No for BUS — the Boiler Upgrade Scheme does not have an EPC band rule because the SAP uplift from a heat-pump install is so substantial. If your property doesn't have a valid EPC, a Domestic Energy Assessor can lodge one for around £60-£100; it stays valid for 10 years. Our EPC Checker tool looks up your current rating in 10 seconds.

Yes — and being on a qualifying benefit (Universal Credit, Pension Credit, Pension Guarantee Credit, PIP, ESA, JSA, Income Support, Housing Benefit, Child Benefit at household-size thresholds) is the strongest fast-track. Under ECO4 today it takes you straight through Route 1 with no income test. Under WHLG from 2027 it remains a fast-track within the £36,000 income cap. If you also have a NICE NG6 cold-vulnerability condition (cardiovascular, respiratory, mental health, disability, 65+, young children, pregnant women), the GP / NHS referral route disregards income entirely for both schemes.

Yes. The Warm Homes Plan includes a new low- and zero-interest consumer loan scheme, backed by up to £5 billion through the Warm Homes Fund, for households who want to install solar, batteries, insulation or a heat pump but don't qualify for WHLG. It's rolling out in phases from 2027; full rates and eligibility hadn't been confirmed at time of writing.

Yes. Private rented properties in England must reach EPC Band C by October 2030, assessed across a heat metric and a smart-readiness metric, with landlord costs capped at £10,000 (lower for lower-value properties). This runs alongside, not instead of, the WHLG and BUS grant routes.

It's the average cap councils work to, not a strict per-household limit — some homes get more from one pot and less from the other, as long as the local authority balances it across their overall caseload by the scheme's 2028 milestone.

No. DESNZ removed the EPC requirement for BUS applications to speed up the process — one of several changes aimed at getting heat pump installs done within roughly 3 days of a final quote being agreed.