The UK government has unveiled the Warm Homes Grant for 2025, marking a significant initiative within its broader Warm Homes Plan.

This scheme aims to increase energy efficiency in homes across England. It specifically targets low-income homeowners, assisting them in making their properties more energy-efficient while simultaneously reducing their carbon footprint.

The grant will fund various upgrades, including insulation and the installation of energy-efficient heating systems, leading to lower energy costs for residents.

The Warm Homes Grant is the next step in tackling fuel poverty across the country. It will help those most affected by rising energy prices by improving the energy performance of their homes.

This initiative also plays a crucial role in the UK’s ambitious goal of achieving net-zero emissions by 2050. By promoting energy efficiency and the adoption of low-carbon heating solutions, the grant contributes significantly to national efforts to combat climate change.

Warm Homes Grant: Eligibility and Application

Who is Eligible for the Warm Homes Grant?

The Warm Homes Grant is designed to support households struggling with energy costs due to inefficient homes. Eligibility hinges on three main factors:

• Income: Households must have a gross annual income of £36,000 or less to qualify. Additionally, those receiving means-tested benefits, like housing benefits or income-based Jobseeker’s Allowance, are also eligible.
• Property Type: The grant applies to existing owner-occupied homes and private rental properties where the landlord is willing to participate. New-build and self-built homes are excluded from the program.
• Energy Performance Certificate (EPC) Rating: To qualify, the property must have an EPC rating between D and G, indicating significant potential for energy efficiency improvements.

The Application Process: A Partnership with Local Authorities

Local authorities play a central role in administering the Warm Homes Grant. Here’s a breakdown of the process:

• Expression of Interest: All eligible local authorities in England must submit an expression of interest (EOI) form to participate in the scheme. The EOI window opened on October 16, 2024, and closed on December 1, 2024.
• Funding Allocation: Funding is allocated to all local authorities that submitted an EOI and met the minimum criteria. The UK government has earmarked £88 million for 2025-2026, with the potential to upgrade up to 9,000 homes. The final funding allocation, based on past delivery performance, will be confirmed around February 2025.
• Household Applications: Once local authorities receive funding, homeowners and landlords can apply for the grant. Local authorities are responsible for verifying household eligibility and managing the application process.

Ensuring Broad Participation

The Warm Homes Grant aims to ensure widespread participation and make energy-efficient upgrades accessible to as many eligible households as possible.

The funding model has been streamlined, replacing the previous Local Authority Delivery and Home Upgrade Grant programs.

All fuel types are covered, benefiting homes connected to the gas grid and those relying on alternative heating sources like electricity, oil, or coal.

While landlords are required to contribute 50% of the costs for upgrades beyond one property, tenants are not expected to bear any expenses, removing a barrier to participation.

Types of Home Improvements Covered

Enhancing Energy Performance

The Warm Homes Grant offers up to £15,000 per property to enhance energy performance through a variety of measures, aiming to elevate the property’s EPC rating, with a target of achieving Band C where feasible. These improvements include:

• Insulation: Adding insulation to walls, lofts, and floors can significantly reduce heat loss, making homes warmer and lowering energy bills.
• Draughtproofing: Sealing gaps and cracks around windows and doors prevents heat from escaping and cold air from entering, enhancing comfort and energy efficiency.
• Double or Triple Glazing: Replacing single-glazed windows with double or triple glazing creates an insulating barrier, reducing heat loss and noise pollution.
• Solar PV and Battery Storage: Installing solar panels allows homeowners to generate their electricity, lowering their reliance on the grid and reducing carbon emissions. Battery storage systems can store excess solar energy for use when the sun isn’t shining, further enhancing energy independence.

Embracing Low-Carbon Heating

In addition to energy performance upgrades, the Warm Homes Grant provides an additional £15,000 per property for the installation of low-carbon heating systems, particularly encouraged for homes not connected to the gas grid and relying on carbon-intensive fuels like oil or coal. This includes:

• Air Source Heat Pumps: These systems extract heat from the outside air, even at low temperatures, and use it to heat homes and provide hot water, offering a highly efficient and environmentally friendly alternative to traditional heating systems.
• Ground Source Heat Pumps: These systems work similarly to air source heat pumps but draw heat from the ground, providing consistent and reliable heating even in colder climates.
• Enhanced Boiler Upgrade Scheme: The government will provide increased financial incentives of up to £7,500 per household to facilitate the transition to low-carbon heating technologies, specifically heat pumps. By offsetting a significant portion of installation expenses, the scheme aims to accelerate the UK’s decarbonization of domestic heating, which currently accounts for approximately 14% of the nation’s total carbon emissions.
• Regulatory Streamlining for Heat Pump Installations: Recognising the administrative barriers that have historically impeded heat pump adoption, the government has comprehensively revised planning regulations. The removal of the restrictive one-metre property boundary requirement represents a significant policy reform designed to simplify the installation process.

Both cost caps for energy performance measures and low-carbon heating are intended to be averaged across all projects under the scheme, ensuring balanced allocation of resources.

The Benefits of the Warm Homes Grant

Tackling Fuel Poverty

The grant’s targeted support for low-income households, especially those with poorly insulated homes and inefficient heating systems, helps alleviate this burden by:

• Reducing Energy Consumption: Energy-efficiency upgrades, such as insulation and draughtproofing, minimize heat loss, leading to lower energy consumption for heating, resulting in smaller energy bills.
• Making Homes More Affordable to Heat: By improving the thermal performance of homes, the grant ensures that less energy is required to maintain a comfortable temperature, making heating more affordable for residents.

Creating Healthier and More Comfortable Homes

Beyond financial relief, the Warm Homes Grant promotes healthier and more comfortable living environments for residents. By tackling issues like damp and cold, the grant leads to:

• Improved Health Outcomes: Living in cold and damp homes can exacerbate respiratory problems, cardiovascular disease, and mental health issues. The grant’s focus on improving energy efficiency helps create warmer, drier homes, leading to better health outcomes for residents.
• Enhanced Comfort and Well-being: A warm and comfortable home is essential for well-being. The grant’s support for upgrades like insulation and efficient heating ensures that residents can enjoy comfortable living spaces, reducing stress and enhancing quality of life.

Contributing to a Sustainable Future

The Warm Homes Grant aligns with the UK’s ambitious target of achieving net-zero emissions by 2050. By promoting energy efficiency and low-carbon heating solutions, the grant:

• Reduces Carbon Emissions: Energy-efficiency upgrades and the adoption of low-carbon heating technologies like heat pumps significantly reduce greenhouse gas emissions from homes, contributing to national efforts to combat climate change.
• Promotes Sustainable Living: The grant encourages the adoption of sustainable practices by incentivizing homeowners and landlords to invest in energy-efficient technologies and reduce their reliance on fossil fuels.

Conclusion

A Brighter Future: Warm Homes and a Sustainable UK

The Warm Homes Grant is a transformative initiative that promises to significantly enhance the lives of low-income homeowners in England. By making energy-efficient upgrades and low-carbon heating solutions more accessible, the grant:

• Empowers residents to reduce their energy bills, freeing up vital income for other essential needs.
• Creates healthier and more comfortable living environments, improving well-being and reducing the health risks associated with cold and damp homes.
• Contributes significantly to the UK’s net-zero ambitions, reducing carbon emissions and promoting a more sustainable future for all.

As the grant rolls out in 2025, its impact will be felt across communities, leading to warmer homes, healthier lives, and a more sustainable UK.

Common Questions Answered

Q: What is the Warm Homes: Local Grant?

A: It is a government initiative that replaces the Local Authority Delivery (LAD) program. This scheme provides fully funded energy-efficient upgrades to low-income homeowners across England. It focuses on insulation and air source heat pumps.

Q: What are the implications of the Warm Homes Grant for the energy assessment and retrofit industry?

A: All properties receiving improvements must be assessed per PAS 2035:2023, with energy efficiency measures adhering to PAS 2030:2023. TrustMark-approved retrofit professionals will be needed to work with local authorities.

Q: What are the implications of the Social Housing Fund Wave 3 for the energy assessment and retrofit industry?

A: All projects must comply with PAS 2035:2023, requiring the services of TrustMark-approved retrofit professionals.

Q: Who is eligible for the Warm Homes: Local Grant?

A: It is designed for low-income households with an EPC rating of D to G in privately owned or rented homes. Eligible households must have a gross income of £36,000 or less or receive certain benefits. New-build and self-built homes are excluded.

Q: How does the scheme work?

A: Local authorities deliver the scheme, starting in 2025. Funding covers upgrades like insulation, solar panels, and low-carbon heating systems.

Q: What are the key funding details?

A: It offers up to £15,000 per home for energy performance improvements and an additional £15,000 for low-carbon heating. Private landlords get one property fully funded, contributing 50% for additional properties. Tenants do not contribute.