Glossary · Heat pumps, grants and regulations
What is the Warm Homes Plan?
The Warm Homes Plan is the UK government's policy paper, published in January 2026, for upgrading homes to cut energy bills and fuel poverty. It sets out £15 billion of public investment to upgrade up to 5 million homes by 2030 through grants, loans, a heat pump grant and new rules for landlords.
Key points
- The plan was first published on 21 January 2026 and corrected on 18 March 2026. It commits £15 billion of public investment to upgrade up to 5 million homes by 2030.
- The Boiler Upgrade Scheme is funded with £2.7 billion to 2030 and currently offers £7,500 towards an air source or ground source heat pump.
- Low-income households are served through the Warm Homes: Local Grant, for which household income must usually be £36,000 a year or less.
- The Energy Company Obligation, which paid for many insulation and boiler jobs, closes on 31 December 2026.
- The plan is a government policy paper, not a single grant. Each scheme under it has its own eligibility rules.
How the Warm Homes Plan works
The Warm Homes Plan is a policy paper from the Department for Energy Security and Net Zero. It was first published on 21 January 2026 and updated on 18 March 2026 to correct information on three pages.[1]Department for Energy Security and Net Zero, Warm Homes Plan It sets out how the government intends to cut energy bills and upgrade homes. It commits £15 billion of public investment to upgrade up to 5 million homes and lift up to a million families out of fuel poverty by 2030.[2]Department for Energy Security and Net Zero, Warm Homes Plan (HTML)
It is not one grant. It is a framework of funding streams, finance offers and rules, each with its own eligibility. The plan splits the money into these streams.[2]Department for Energy Security and Net Zero, Warm Homes Plan (HTML)
- £5 billion for low-income schemes
- £2 billion for consumer loans
- £2.7 billion for the Boiler Upgrade Scheme
- £1.1 billion for heat networks
- £2.7 billion of innovative finance through the Warm Homes Fund
- £1.5 billion of other funding for plan programmes and the devolved administrations
The plan also confirms new minimum energy efficiency standards that privately rented properties will need to meet by 2030, and plans to implement the Future Homes Standard for new homes.[2]Department for Energy Security and Net Zero, Warm Homes Plan (HTML)
The schemes you can use today
Some schemes are already running under or alongside the plan.
| Scheme | What it offers | Who it is for |
|---|---|---|
| Boiler Upgrade Scheme | £7,500 towards an air source or ground source heat pump, £5,000 for a biomass boiler, £2,500 for an air-to-air heat pump | Owners replacing a fossil fuel heating system in England or Wales |
| Warm Homes: Local Grant | Free improvements such as insulation, air source heat pumps, smart controls and solar panels | Private homes in England with an EPC of D to G and, usually, household income of £36,000 or less |
| Energy Company Obligation | Help with insulation and heating upgrades | Certain benefit claimants. Closes on 31 December 2026 |
The Boiler Upgrade Scheme grant is paid through an installer. The installer applies on your behalf and the value is taken off the amount you pay.[6]GOV.UK, Apply for the Boiler Upgrade Scheme Until March 2027 there is an additional £1,500 towards an air source or ground source heat pump if the property is heated by oil or LPG and has no mains gas connection. You cannot get a grant for a hybrid system.[3]GOV.UK, Apply for the Boiler Upgrade Scheme: What you can get The Warm Homes: Local Grant is arranged through your local council.[4]GOV.UK, Apply for the Warm Homes: Local Grant to improve a home The Energy Company Obligation is closing on 31 December 2026.[5]GOV.UK, Help from your energy supplier: the Energy Company Obligation
The plan says low-income support will be delivered initially through the existing Warm Homes Social Housing Fund and the Local Grant before being combined into a single scheme.[2]Department for Energy Security and Net Zero, Warm Homes Plan (HTML)
Example
Sarah owns a house in Bradford that is heated by mains gas and rated EPC D. She is thinking about replacing her boiler and has heard about the Warm Homes Plan. She finds that her household income is above £36,000, so the Local Grant is unlikely to apply unless she lives in a qualifying postcode area or receives certain benefits. She could use the Boiler Upgrade Scheme if she chooses an air source heat pump to replace her gas boiler. She asks a BASI engineer for a quote on both a heat pump and a new boiler, then decides.
What people get wrong
Many people treat the Warm Homes Plan as a grant that is open for applications. It is a plan. Money reaches homes through separate schemes, and each has its own eligibility and a limited budget. If an installer says “the Warm Homes Plan will pay for it”, ask which scheme and where it is on GOV.UK.
The second mistake is mixing it up with older schemes. The Green Homes Grant voucher scheme is closed, and the Energy Company Obligation ends on 31 December 2026. Check any offer against the current GOV.UK page before you agree to work. Our page on the Green Homes Grant explains what happened to the earlier scheme.
The bottom line
The Warm Homes Plan is the UK government’s 2026 programme to upgrade up to 5 million homes by 2030 with £15 billion of public investment. It is not a grant in itself. Homeowners meet it through the Boiler Upgrade Scheme, the Warm Homes: Local Grant and finance offers. Check eligibility on GOV.UK, and use an MCS certified installer for heat pump grants. For boiler and heat pump options see our boiler grants and heat pump pages.
Common questions
Is the Warm Homes Plan a grant I can apply for?
No. It is the government's overall plan. You apply to the schemes within it, such as the Boiler Upgrade Scheme through an MCS certified installer or the Warm Homes: Local Grant through your council.
How much is the Boiler Upgrade Scheme grant?
GOV.UK currently lists £7,500 for an air source or ground source heat pump, £5,000 for a biomass boiler and £2,500 for an air-to-air heat pump. Until March 2027 there is an extra £1,500 for heat pumps in oil or LPG homes with no mains gas.
Is the Warm Homes Plan the same as the Green Homes Grant?
No. The Green Homes Grant voucher scheme closed to new applications on 31 March 2021. The Warm Homes Plan, published in 2026, is a separate and much larger programme.
Does the plan cover Wales, Scotland and Northern Ireland?
Parts do. The Boiler Upgrade Scheme is open in England and Wales, and the Warm Homes: Local Grant is only available in England. Scotland and Northern Ireland have separate arrangements.
Sources
We cite the original source for every figure: government, regulators, standards bodies and manufacturers' own documents. Each one shows the date we last checked it.
- Department for Energy Security and Net Zero. Warm Homes Plan. Checked 11 November 2026. ↩
- Department for Energy Security and Net Zero. Warm Homes Plan (HTML). Checked 11 November 2026. ↩
- GOV.UK. Apply for the Boiler Upgrade Scheme: What you can get. Checked 11 November 2026. ↩
- GOV.UK. Apply for the Warm Homes: Local Grant to improve a home. Checked 11 November 2026. ↩
- GOV.UK. Help from your energy supplier: the Energy Company Obligation. Checked 11 November 2026. ↩
- GOV.UK. Apply for the Boiler Upgrade Scheme. Checked 11 November 2026. ↩