Off-gas-grid homes in England face some of the highest domestic energy costs in the country. Without access to mains gas, millions of households rely on oil, LPG, electric storage heaters, or solid fuel to heat their homes — fuels that are typically more expensive per unit of energy and harder to switch away from without significant upfront investment. The Home Upgrade Grant exists specifically to change that picture for lower-income households in this situation.
The Home Upgrade Grant (HUG2) is a government-funded scheme in England providing free energy efficiency improvements to off-gas-grid households with an income at or below £36,000 per year or an EPC rating of E, F, or G. Eligible homeowners and private tenants can receive measures such as heat pumps and insulation worth up to £30,000 or more at no cost, funded through local councils via the Department for Energy Security and Net Zero. The single most important thing to know is that funding is allocated locally and can run out, so contacting your local authority as soon as possible gives you the best chance of securing an upgrade before budgets are exhausted.
- Check your eligibility before applying — your home must be in England, not connected to mains gas, and your household income must be at or below £36,000 per year or your property must have an EPC rating of E, F, or G
- Contact your local council directly to apply for the Home Upgrade Grant, as funding is allocated at local authority level and budgets can run out before the scheme deadline
- Qualifying households can receive free energy upgrades worth tens of thousands of pounds, including heat pumps, insulation, and solar panels, with no upfront cost
- Gather your EPC certificate and proof of income or benefits before approaching your council, as these documents will speed up your application significantly
- If your council has exhausted its HUG2 allocation, ask specifically about the Great British Insulation Scheme or ECO4 as alternative routes to funded improvements
- Oil, LPG, electric storage heater, and solid fuel households are all within scope for the Home Upgrade Grant — you do not need to already have a heat pump to qualify
- Get any recommended measures assessed by an MCS-certified installer where heat pumps are involved, as this accreditation is required for compliant grant-funded installations
- Understanding the Home Upgrade Grant and What It Means for Off-Gas-Grid Homes
- Does Your Home Actually Qualify for the Home Upgrade Grant
- What Upgrades and Measures Are Actually Available Through HUG2
- How Much Funding Can You Receive and What Are the 2026 Costs Involved
- How to Apply for the Home Upgrade Grant Step by Step
- How HUG2 Compares to ECO4 and the Great British Insulation Scheme
The Home Upgrade Grant, commonly referred to as HUG2, is a government-funded scheme administered by local councils across England that provides free or heavily subsidised energy efficiency improvements to low-income households not connected to the mains gas network. Qualifying households can receive upgrades worth tens of thousands of pounds — including heat pumps, insulation, and in some cases solar panels — at no cost to themselves. To qualify, your home must be in England, must not be connected to mains gas, and your household income must be at or below £36,000 per year, or your property must carry an EPC rating of E, F, or G.
This guide walks you through everything you need to know — what the scheme covers, whether your home is eligible, how much funding is available in 2026, and how to apply before local authority budgets run out.
Understanding the Home Upgrade Grant and What It Means for Off-Gas-Grid Homes
The Home Upgrade Grant is a government programme funded through the Department for Energy Security and Net Zero (DESNZ) and delivered by local authorities across England. The current phase, known as HUG2, is the second iteration of the scheme, building directly on the original HUG1 programme. It is designed specifically to address the energy efficiency challenges faced by households that are not connected to the mains gas network — a group that has historically been overlooked by mainstream energy support programmes.
To understand why off-gas-grid homes are the specific focus here, it helps to look at the numbers. According to the Energy Saving Trust, households heating with oil or LPG typically spend significantly more on energy than equivalent gas-heated homes, even before the volatility of oil prices is taken into account. Electric storage heaters, while convenient, are often inefficient and expensive to run on standard tariffs. Solid fuel heating, still common in rural areas, carries its own running costs and environmental challenges. The result is a group of homeowners who are more likely to experience fuel poverty, live in older and harder-to-treat properties, and face a steeper financial climb when it comes to upgrading to cleaner, more efficient heating.
HUG2 is funded through DESNZ as part of the UK government’s broader commitment to decarbonising domestic heating and reducing fuel poverty. It is an England-only scheme, which is an important point to flag clearly. If you live in Scotland, the equivalent programme is Warmer Homes Scotland, administered by Home Energy Scotland. In Wales, the relevant schemes are Nest and the Optimised Retrofit Programme. Northern Ireland has the Affordable Warmth Scheme. Each has its own eligibility criteria and application process, and readers in devolved nations should contact the relevant scheme directly rather than applying for HUG2.
Practical tip — if you are unsure whether your home is connected to mains gas, check your most recent energy bills. If you pay separately for oil, LPG deliveries, or you use electric heaters as your primary heating source, you are almost certainly off the gas grid and may be eligible.
Does Your Home Actually Qualify for the Home Upgrade Grant
Eligibility for HUG2 rests on a combination of property type, location, fuel use, and household income — and understanding where you stand on each of these criteria will save you time before you apply.
The core eligibility conditions are as follows. First, your property must be located in England. Second, your property must not be connected to the mains gas network. Third, your household income must be at or below £36,000 per year, or your property must have an EPC rating of E, F, or G regardless of income level. All three of the first two conditions must be met; the income or EPC condition then provides two routes to eligibility.
An EPC, or Energy Performance Certificate, is a document that rates your home’s energy efficiency on a scale from A (most efficient) to G (least efficient). You can check whether your property already has an EPC — and what rating it currently holds — by searching the official GOV.UK EPC register free of charge. Homes rated D or above are less likely to qualify unless the income threshold is also met. If your home has never had an EPC, do not let that stop you from making an enquiry — local authorities can arrange an assessment as part of the application process.
On the question of property ownership, HUG2 primarily targets owner-occupiers. Private renters can benefit in some circumstances, but the landlord must consent to the works and may be required to contribute financially — particularly if the measures would increase the property’s value or rental yield. Social housing tenants are generally excluded from HUG2, as separate funding streams exist for social housing decarbonisation.
One of the most common points of confusion around HUG2 is the assumption that you need to be claiming benefits to qualify. Unlike some strands of the ECO4 scheme — which we cover later in this article — HUG2 does not require benefit receipt as a condition of eligibility. However, local authorities do prioritise the most vulnerable cases when allocating funding. Households on means-tested benefits, those identified as being in fuel poverty, and properties with the worst EPC ratings will typically be moved to the front of the queue. Being eligible in principle does not guarantee you will receive funding quickly, or at all if local budgets have been exhausted.
article on EPC ratings explained for homeowners
Practical tip — before you contact your local authority, check the GOV.UK EPC register to confirm your property’s current rating. This single piece of information will significantly speed up your initial enquiry.
What Upgrades and Measures Are Actually Available Through HUG2
HUG2 covers a meaningful range of energy efficiency and low-carbon heating measures, though what is available to any individual household depends on the retrofit assessment of that specific property. The scheme is built around a fabric-first philosophy — meaning insulation and draught-proofing are addressed before or alongside new heating systems — which is the right approach and reflects the PAS 2035 retrofit standards that govern how works are designed and installed.
Heating System Upgrades
Because HUG2 exists specifically for off-gas-grid homes, gas boilers are explicitly excluded from the scheme — there is no route to funding a gas boiler replacement through HUG2, and any installer suggesting otherwise should be treated with caution. The heating measures available include air source heat pumps, ground source heat pumps, biomass boilers, and in some cases infrared heating panels.
An air source heat pump is a device that extracts heat energy from outdoor air and transfers it inside your home, using electricity to move that heat rather than generate it directly. This makes it considerably more efficient than a direct electric heater. A ground source heat pump works on the same principle but draws heat from the ground via buried pipework, making it more consistent in very cold weather but more disruptive and expensive to install. A biomass boiler burns sustainably sourced wood pellets or logs to generate heat and can be a practical choice in rural areas with reliable fuel supply.
Insulation and Fabric Measures
The insulation measures available through HUG2 include solid wall insulation (both internal and external), cavity wall insulation, loft insulation, underfloor insulation, and park home insulation for those living in mobile or park homes. Insulation is typically installed as part of a broader package rather than as a standalone measure, though this can vary depending on your local authority’s approach and available budget.
Glazing and Additional Measures
Depending on local authority budgets and the specific retrofit package recommended for your property, HUG2 may also cover double or triple glazing upgrades, solar photovoltaic (PV) panels, and solar thermal systems. Solar PV panels generate electricity from sunlight, which can meaningfully reduce the running costs of a heat pump if installed together. These additional measures are not universally available and should be confirmed with your local authority during the enquiry stage.
PAS 2035 is the British standard that governs the retrofit of domestic buildings. It sets out how assessments must be conducted, how measures must be specified, and how installations must be quality-checked. All works funded through HUG2 must comply with PAS 2035, which is a genuine safeguard for homeowners — it means you cannot, for example, end up with a heat pump installed in a home that has not been adequately insulated first.
article on air source heat pumps — what homeowners need to know
Practical tip — when you receive your retrofit assessment, ask the assessor to explain why each recommended measure has been included. A good assessor will be happy to walk you through the logic, and understanding the plan makes it easier to spot anything that does not seem right.
How Much Funding Can You Receive and What Are the 2026 Costs Involved
For eligible low-income households, HUG2 can fund up to 100% of the cost of all approved measures — meaning many qualifying homeowners pay absolutely nothing for works that could cost well into five figures on the open market. For households in harder-to-treat properties that sit above the income threshold but still have poor EPC ratings, partial funding may apply, with the local authority or scheme administrator confirming what contribution (if any) is expected.
To give you a realistic sense of the value involved, the table below shows typical installed costs for common HUG2 measures in 2026, alongside the level of coverage the scheme can provide.
| Measure | Typical 2026 Installed Cost | Typical HUG2 Coverage |
|---|---|---|
| Air Source Heat Pump | £8,000 – £15,000 | Up to 100% for eligible households |
| Ground Source Heat Pump | £15,000 – £30,000 | Up to 100% for eligible households |
| External Wall Insulation | £8,000 – £22,000 | Up to 100% for eligible households |
| Loft Insulation | £300 – £700 | Up to 100% for eligible households |
| Solar PV (4kW system) | £5,000 – £8,000 | Potentially included in package |
| Double Glazing (whole home) | £4,000 – £12,000 | Potentially included in package |
Cost figures are based on 2026 market data from MCS, DESNZ publications, and Energy Saving Trust guidance. Individual quotes will vary significantly depending on property size, location, ease of access, and the specific product or system installed. Always get at least three quotes if you are funding any element yourself.
Understanding Running Costs After Installation
Receiving a free heat pump installation does not mean your energy bills disappear entirely. An air source heat pump runs on electricity, and while it is considerably more efficient than electric storage heaters — typically producing three or more units of heat for every unit of electricity consumed — your actual bills will depend on your electricity tariff, how well your home is insulated, and how you use the system. The Energy Saving Trust offers a heat pump running cost calculator on its website that can give you a rough indication based on your property type and size. This will vary based on your home’s insulation level and usage patterns, so treat any estimate as a starting point rather than a guarantee.
A Word on Budget Availability
Local authority HUG2 budgets are finite, and some areas have already exhausted their allocation ahead of the scheme’s deadline. If you are reading this in 2026, applying promptly is genuinely important. Do not assume that because you qualify in principle, funding will be there when you eventually get around to applying. Contact your local authority as early as possible to register your interest.
article on running costs of air source heat pumps in the UK
Practical tip — before your home assessment, make a list of any heating or insulation issues you have noticed, such as cold spots, draughty rooms, or condensation. This practical information helps the Retrofit Assessor build a more accurate picture of your home’s needs.
How to Apply for the Home Upgrade Grant Step by Step
Applying for HUG2 is a straightforward process once you know where to start — the steps below walk you through what to expect from initial enquiry to completed installation.
- Check your EPC rating — visit the GOV.UK EPC register and search for your property’s address. Your current rating will tell you immediately whether you meet the EPC threshold for HUG2. If your home has no EPC on record, make a note of this — it will not disqualify you, and your local authority assessor will arrange one as part of the process.
- Identify your local authority contact — HUG2 is delivered through individual local councils, so the route into the scheme varies by area. Visit the GOV.UK Home Upgrade Grant page or use the Simple Energy Advice (SEA) service at simpleenergyadvice.org.uk to find your local scheme contact. The SEA service is the recommended starting point for many households, as advisers can help you understand which schemes you may be eligible for before you commit time to a full application.
- Submit an expression of interest — most local authorities offer an online expression of interest form or a dedicated phone line. You will be asked basic questions about your household income, property type, current fuel source, and whether you own or rent. Be honest and accurate at this stage — misrepresenting your situation will cause problems later and could result in costs being reclaimed.
- Undergo a home assessment — if your initial enquiry indicates you may qualify, a Retrofit Assessor qualified to PAS 2035 standards will visit your property. This assessment is thorough — they will inspect your current heating system, insulation levels, windows, roof space, and overall construction — and is used to recommend a tailored package of measures for your specific home.
- Review and approve your retrofit plan — following the assessment, you will receive a document called a Medium-Term Improvement Plan. This sets out all of the recommended measures, the reasoning behind each one, and the proposed sequence of works. Read it carefully. Ask questions about anything you do not understand. You are under no obligation to proceed, and a reputable local authority will not pressure you.
- Installation by approved contractors — all works under HUG2 are carried out by contractors arranged by the local authority. You should not be asked to source your own installers. For heat pump and solar installations, ensure the contractors hold MCS certification (Microgeneration Certification Scheme) — this is the industry standard for renewable energy installers in the UK and is a condition of funding. For electrical work, installers should be registered with NICEIC or NAPIT. All contractors should be registered with TrustMark, which is the government-endorsed quality scheme for home improvement work. You can verify MCS certification at mcscertified.com and TrustMark registration at trustmark.org.uk.
- Post-installation checks and handover — under PAS 2035, a Retrofit Coordinator must oversee the entire project from assessment through to completion. Before the installers leave, ensure you receive all handover documents including installation certificates, product warranties, MCS certificates for any heat pump or solar system, and guidance on how to operate your new heating system correctly. Do not sign off on completed works until you are satisfied that everything has been installed as specified and you understand how to use it.
article on PAS 2035 explained for homeowners
Practical tip — keep copies of all documentation you receive during and after the installation process. MCS certificates, building regulations completion certificates, and product warranties will all be relevant if you ever sell your home or need to make a warranty claim.
How HUG2 Compares to ECO4 and the Great British Insulation Scheme
HUG2 is not the only energy efficiency grant scheme available to UK homeowners, and understanding how it relates to other programmes will help you make the most of what is available — in some cases, you may be eligible for more than one scheme simultaneously.
HUG2 vs ECO4
The Energy Company Obligation, currently in its fourth phase and known as ECO4, is delivered by energy suppliers rather than local authorities and covers both on-gas and off-gas-grid homes. Where HUG2 is exclusively for properties not connected to mains gas, ECO4 can fund improvements across a broader range of property types. Both schemes target low-income and vulnerable households, though ECO4 places greater emphasis on benefit receipt as an eligibility trigger in some scenarios. Critically, some households may be eligible for both HUG2 and ECO4 — it is worth exploring both routes, as local authorities and energy suppliers operate independently and being funded through one scheme does not automatically preclude the other. The key difference in practice is that HUG2 can fund a complete package of measures, while ECO4 works are often more narrowly scoped depending on the energy supplier involved.
HUG2 vs the Great British Insulation Scheme
The Great British Insulation Scheme (GBIS) has a broader eligibility threshold than HUG2 but a narrower scope of works. GBIS focuses on funding a single insulation measure per property — typically loft insulation or cavity wall insulation — and does not fund new heating systems. It can complement HUG2 well: for example, if a household has already received a heat pump through HUG2 but requires additional insulation, GBIS may be able to fill that gap. The income threshold for GBIS is less restrictive, meaning households who miss the HUG2 income criteria might still qualify for insulation support through GBIS.
The Boiler Upgrade Scheme as an Alternative
For off-gas-grid homeowners who do not qualify for HUG2 on income grounds — perhaps because their household income exceeds £36,000 — the Boiler Upgrade Scheme (BUS) is worth serious consideration. As of 2026, the BUS offers a £7,500 grant voucher towards the cost of installing an air source heat pump, and £7,500 towards a ground source heat pump. Unlike HUG2, the BUS is open to households at any income level and does not require a particular EPC rating. It does not, however, cover insulation or any other fabric measures — it is purely a contribution towards the cost of the heat pump unit and installation. For households above the HUG2 income threshold, combining a BUS voucher with separately arranged insulation improvements — funded personally or through GBIS — is a sensible approach to a whole-house retrofit.
The table below summarises the key differences between the main schemes available to off-gas-grid homeowners in England in 2026.
| Scheme | Who Delivers It | Income Limit | Heating Measures Covered | Insulation Covered | Off-Gas-Grid Only |
|---|---|---|---|---|---|
| HUG2 | Local authorities (England) | £36,000 or EPC E/F/G | Heat pumps, biomass | Yes — full range | Yes |
| ECO4 | Energy suppliers (GB) | Means-tested or benefit-linked | Heat pumps, boilers | Yes — range varies | No |
| GBIS | Energy suppliers (GB) | Broader threshold applies | No | Single measure only | No |
| Boiler Upgrade Scheme | MCS installers via DESNZ | None | Heat pumps only | No | No — but ideal for off-grid |
The clear priority for low-income off-gas-grid households is to explore HUG2 first. It offers the broadest coverage, the deepest funding, and the most coordinated approach to improving your home through the PAS 2035 framework. If HUG2 funding is unavailable in your area or you do not meet the income threshold, ECO4 and the BUS are your next best options depending on your circumstances.
article on the Boiler Upgrade Scheme — how to apply in 2026
article on Great British Insulation Scheme eligibility explained
Practical tip — contact the Simple Energy Advice service before applying to any individual scheme. Advisers can assess your eligibility across multiple programmes in a single conversation, saving you time and ensuring you do not miss out on funding you are entitled to.
A Final Word on Getting It Right
The Home Upgrade Grant represents a genuine opportunity for off-gas-grid homeowners in England to substantially reduce their energy costs and improve the long-term comfort and value of their homes — at little or no personal cost. But the scheme is time-limited, budgets vary between areas, and the quality of works depends heavily on the contractors and coordinators involved. Insist on MCS-certified installers for any heat pump or solar system, verify TrustMark registration for all contractors, and ensure that PAS 2035 procedures are followed from assessment through to handover. Your home is one of your most significant assets — the grant pays for the improvements, but your diligence protects the outcome.
Frequently Asked Questions
who is eligible for the home upgrade grant off gas grid?
To qualify for the Home Upgrade Grant in England, your home must not be connected to the mains gas network and your household income must be at or below £36,000 per year. Alternatively, your property can qualify if it holds an EPC rating of E, F, or G regardless of income. Private renters may also be eligible, but landlord consent is typically required before works can begin.
how much can I get from the home upgrade grant?
The Home Upgrade Grant can cover energy efficiency improvements worth up to around £10,000 to £30,000 or more per household depending on the measures recommended and your local authority's allocation. Measures such as air source heat pumps, external wall insulation, and solar panels can individually cost thousands of pounds, all of which are provided free to eligible households. The exact amount depends on your property type, current EPC rating, and what your local council has funded.
what does the home upgrade grant cover?
The Home Upgrade Grant covers a range of energy efficiency and low-carbon heating measures including air source heat pumps, ground source heat pumps, solid wall insulation, loft insulation, underfloor insulation, solar panels, and double or triple glazing in some cases. The specific measures offered depend on what will most improve your home's energy efficiency as determined by a surveyor visit. All works must be installed by accredited contractors approved by your local authority.
how do I apply for the home upgrade grant if I use oil or LPG heating?
Apply by contacting your local council in England directly, as the Home Upgrade Grant is administered at local authority level rather than centrally. Many councils have an online referral form or a dedicated energy team you can call. Oil and LPG households are specifically within scope for the scheme, and a free home survey will typically be arranged to assess which improvements your property qualifies for.
is the home upgrade grant available in Wales or Scotland?
No, the Home Upgrade Grant is an England-only scheme funded through the Department for Energy Security and Net Zero. Households in Wales can explore the Nest scheme, which offers similar free energy efficiency support for low-income or low-EPC-rated properties. Scottish households should look at the Warmer Homes Scotland programme, which provides comparable funded upgrades for eligible off-gas-grid properties north of the border.
