The UK government has launched a new Warm Homes Plan, a £15 billion, five-year initiative aimed at upgrading5 million homes by 2030 to reduce energy bills and fuel poverty. This plan introduces significant changes to existing schemes, focusing on “carpet-bombing” areas with energy efficiency measures, heat pumps, and solar panels.

Here are the key components of the Warm Homes Plan as of March 2026:

1. Warm Homes: Local Grant (England)
This scheme replaces the previous Local Authority Delivery (LAD) and Home Upgrade Grant (HUG) programmes.

Purpose: Provides fully funded, free energy-performance upgrades for low-income households in privately owned or rented homes with poor energy ratings (EPC D-G).

Upgrades: Includes insulation (loft, wall, floor), solar panels, heat pumps, smart controls, and ventilation.

Funding: Up to £15,000 for energy performance improvements and an additional £15,000 for low-carbon heating (e.g., heat pumps).

Eligibility:

• Gross annual household income of £36,000 or less, OR
• Receipt of means-tested benefits, OR
• Residency in specific low-income postcode areas.

Landlords: Private landlords can receive full funding for the first property, with 50% funding for subsequent properties.

2. Warm Homes Fund (Loans & Finance)

Purpose: A new £5 billion fund to offer low- or zero-interest loans to help “able-to-pay” households cover the upfront costs of green technologies.

Focus: Designed to enable households to install solar panels, batteries, and heat pumps.

Timing: These loans are expected to launch in 2027.

3. Boiler Upgrade Scheme (BUS)

Extension: The scheme is extended until 2029/30.
Grant Amount: £7,500 off the cost of an air source heat pump.

New Feature: From early 2025, air source heat pumps can be installed without planning permission in many cases, removing the 1-metre rule.

4. Other Key Measures

Social Housing Fund: £374 million allocated for Wave 3, with additional funding for upgrades.

Renters’ Standards: New regulations will require private rented homes to meet a minimum EPC rating of C by 2030, with landlords expected to spend up to £10,000 to improve properties.

Warm Homes Agency: A new national body will be created to deliver impartial advice and coordinate upgrades from 2027.

Future Homes Standard: New homes will have low-carbon heating, high-level efficiency, and solar panels by default from early 2026.

How to Apply
Local Grant: Residents can check their eligibility on the GOV.UK website.

Local Councils: Many local authorities are directly managing the rollout and accepting applications.

Note: Some areas have high demand, and application portals may be temporarily paused, as seen in London where it is expected to reopen in spring 2026.