Spotlight on the Warm Homes: Local Grant

Launched in April 2025, the Warm Homes: Local Grant is a government-backed scheme designed to help eligible households across England upgrade their homes’ energy efficiency and switch to low-carbon heating. 

With rising energy costs continuing to put pressure on households, Warm Homes is being heralded as potentially game-changing news for homeowners looking to cut bills and boost comfort, all while doing their bit to support the environment.

At Swale Heating, we know how important it is to stay warm while remaining energy efficient, especially as we move toward a more sustainable future. In this blog, we shine a spotlight on everything you need to know about the Warm Homes: Local Grant - from who qualifies, to what measures are covered, and how you can prepare if you think you’re eligible.

What is the Warm Homes: Local Grant? 

The Warm Homes: Local Grant is a government-funded scheme forming a key part of the UK’s long-term strategy to combat fuel poverty and tackle climate change. The initiative marks the first step in delivering on the ambitions of the Government’s broader Warm Homes Plan, a commitment outlined in its manifesto which aims to cut bills, warm homes, and reduce fuel poverty, especially for families struggling with energy costs.

How does the Warm Homes: Local Grant help homeowners?

Delivered by local authorities across England, the grant provides financial support to help low-income households improve their homes’ energy efficiency and transition to low-carbon heating solutions. 

The Warm Homes Plan is part of the Government’s ‘second mission’ - to transform Britain into a clean energy superpower. This includes providing the country with clean energy by 2030, reducing dependence on fossil fuels, and ensuring homes are equipped with modern, low-emission heating systems; this is all in line with the UK’s ambition to reach Net Zero carbon emissions by 2050.

Specifically looking at the Warm Homes: Local Grant, the initiative has two primary objectives:

• To reduce fuel poverty by upgrading as many fuel-poor homes as reasonably practicable to EPC Band C by 2030, delivering long-term energy bill savings and improved living conditions.

• To support Net Zero 2050 and the UK’s Carbon Budgets by installing energy performance upgrades and low-carbon heating technologies that contribute to nationwide carbon abatement.

Who is eligible for the Warm Homes: Local Grant? 

If you're a homeowner or private landlord in England, and your property is energy inefficient, you may be eligible for up to £30,000 in fully funded improvements - dependent on meeting the Warm Homes: Local Grant eligibility criteria.

To qualify, your home must meet all of the following core criteria:

• Located in England.
• Privately owned or privately rented (includes owner-occupiers and private landlords).
• Have an Energy Performance Certificate (EPC) rating of D, E, F, or G.

Income-based eligibility pathways

According to the Warm Homes: Local Grant household eligibility pathways, there are three ways a household may be assessed as ‘income eligible’:

Pathway 1: IMD eligible postcodes

You qualify if you live in a postcode ranked in the lowest two deciles (1–2) of the Indices of Multiple Deprivation (IMD).

Pathway 2: means-tested benefits or ECO4 flex

You or a household member receives a specified means-tested benefit, such as Universal Credit or Housing Benefit,

OR

You meet the Route 2 criteria under the current ECO4 Flex scheme, which is an alternative way to assess income vulnerability.

Pathway 3: household income threshold

Your gross annual household income is below £36,000, or, in some cases, meets a lower equivalised income threshold after factoring in household size and living costs.

Landlords & tenants

Private landlords can also apply for funding to upgrade eligible properties. The scheme covers:

• 100% of the costs for the first property.
• 50% of the costs for any additional properties.

Not only does this offer landlords an opportunity to improve property value and energy performance, but it also means lower energy bills for tenants, a win-win in the private rental sector.

If you’re not sure whether your household qualifies, we recommend contacting your local authority or reviewing your EPC rating and income documentation in advance to prepare for the application process.

What upgrades will it cover?

The Warm Homes: Local Grant will fund two key types of upgrades:

Energy performance improvements (up to £15,000)

This covers measures that boost a home’s energy efficiency, such as:

• Loft, wall and underfloor insulation
• Draught-proofing
• Double or triple glazing
• Solar panels and battery storage.

These upgrades aim to raise the property’s EPC rating to Band C, where possible, helping to reduce energy bills and heat loss, improving overall efficiency of a property.

Low-carbon heating systems – up to £15,000

An additional £15,000 may be available to install low-carbon heating options, such as heat pumps. These systems are especially encouraged for homes that currently rely on more polluting fuels, like oil or coal, due to not being connected to the gas grid.

Both funding caps are set per home, but must be met as an average across each local authority’s project.

Why the Warm Homes: Local Grant matters for homeowners

Free or heavily subsidised upgrades

Access up to £30,000 worth of energy efficiency and low-carbon heating upgrades, with little to no out-of-pocket cost. This can include insulation, heat pumps, solar panels, and more, aimed at boosting home comfort while cutting energy waste.

Lower energy bills

By boosting insulation and installing modern heating systems, the grant helps reduce energy usage, meaning cheaper monthly bills, and potentially even protecting homeowners from future price spikes. 

Increase in property value

In the current property market, energy-efficient homes are more attractive to buyers. An improved EPC rating and modern tech can boost a home's market value and appeal, helping future resale prospects.

Warmer, more comfortable homes

Draught-proofing, double glazing, and improved heating systems all help to mean fewer cold spots, reduced temperature fluctuations, and more consistent warmth throughout the home, meaning a more comfortable living experience, especially in the winter.

How to prepare if you think you’re eligible

If you think you might be eligible for a Warm Homes: Local Grant, then there are some simple steps that you can take to be in the best position to proceed: 

1. Check your EPC rating as this can help to confirm your eligibility. 
2. Gather documents such as proof of income and proof of any benefits you receive, to speed up the application.
3. Contact your local council to both confirm they’re participating in the scheme and to find out how to proceed with the process. 
4. Identify heating/insulation issues. Think about potential challenges in your home, like whether your heating bills are high or if your boiler is inefficient.
5. Talk to your landlord (if renting) as your landlord will need to participate in the application. 

Make the most of the Warm Homes: Local Grant

The Warm Homes: Local Grant offers eligible participants a valuable opportunity to upgrade a home’s energy efficiency and heating. If you’re eligible, now’s the time to prepare and explore your options, as the sooner you move forward with an application, the sooner you can save money on your energy bills. 

At Swale Heating, we can help you get started with expert advice and installation services for a number of renewable heating systems, including air source heat pumps. 

Contact us to speak with our team and start your journey towards a warmer, more efficient home.