The Home Upgrade Grant covers specific energy-efficiency improvements in off-gas homes
The Home Upgrade Grant (HUG) is a UK government scheme that helps homeowners who are not connected to the mains gas grid improve their home’s energy efficiency. It is administered by local authorities and funded by the Department for Energy Security and Net Zero. The grant is means-tested and typically covers 100% of the cost of approved improvements for eligible low-income households (GOV.UK, 2026).
The Home Upgrade Grant covers 100% of costs for off-gas homes, averaging £10,000–£25,000 per household. Eligible low-income homes with EPC D to G can get free insulation, heat pumps, or solar panels installed.
- Grant covers 100% of costs for eligible low-income households.
- Average grant value ranges from £10,000 to £25,000 per home.
- Your home must be off the mains gas grid with an EPC rating D to G.
- Household income must be below £31,000 per year or on means-tested benefits.
- Local authorities set specific criteria within national guidelines.
- The Home Upgrade Grant covers specific energy-efficiency improvements in off-gas homes
- Eligibility depends on your property type, income, and off-gas status
- The average grant value per household is £10,000–£25,000
- Quick numbers key figures for off-gas homes
- The Home Upgrade Grant can reduce heating bills by up to £600 per year
- You must use an MCS-certified installer to qualify for the grant
- The application process runs through your local council, not a national portal
- Grants are limited — apply early as funding is not guaranteed
HUG funds specific measures designed to reduce energy use and heating bills. These include solid wall insulation, underfloor insulation, air source heat pumps, ground source heat pumps, solar photovoltaic (PV) panels, and high-heat-retention storage heaters. The scheme targets homes that rely on oil, liquid petroleum gas (LPG), electric, or solid fuel for heating (DESNZ, 2026).
Eligibility depends on your property type, income, and off-gas status
To qualify for the Home Upgrade Grant, your home must be off the mains gas grid and have an Energy Performance Certificate (EPC) rating of D, E, F, or G. An EPC is a document that rates your home’s energy efficiency from A (most efficient) to G (least efficient). Your household income must be below £31,000 per year, or you must be in receipt of certain means-tested benefits such as Pension Credit or Universal Credit (GOV.UK, 2026).
Local authorities set their own eligibility criteria within national guidelines. This means the exact requirements may vary from one council to another. You should check your local council’s HUG page for the specific rules that apply in your area. Some councils may prioritise households with the lowest incomes or the least efficient homes (DESNZ, 2026).
The average grant value per household is £10,000–£25,000
The average grant awarded per home in the first phase of HUG was approximately £15,000. In 2026, the typical range is £10,000 to £25,000, depending on which measures are installed. Grant amounts are capped per measure type. For example, a heat pump installation may receive up to £7,500, while solid wall insulation can receive up to £10,000 (DESNZ, 2026).
Total funding per local authority area varies. Some councils have limited budgets and operate on a first-come, first-served basis. The grant covers the full cost of installation for eligible households, so you should not need to pay anything upfront if you qualify. If your chosen measures cost more than the cap, you may need to cover the difference yourself (Ofgem, 2026).
Quick numbers key figures for off-gas homes
| Measure type | Average grant contribution | Typical household energy saving per year | CO2 saving per year |
|---|---|---|---|
| Air source heat pump | £7,500 | £400–£600 | 1.5 tonnes |
| Solid wall insulation | £10,000 | £350–£500 | 1.2 tonnes |
| Solar PV (4 kW system) | £4,500 | £300–£450 | 1.0 tonnes |
| High-heat-retention storage heaters | £3,000 | £200–£300 | 0.8 tonnes |
These figures are based on data from the Energy Saving Trust and MCS-certified installer records. Actual savings depend on your home’s size, existing heating system, and energy usage patterns (Energy Saving Trust, 2026).
The Home Upgrade Grant can reduce heating bills by up to £600 per year
The primary benefit of the Home Upgrade Grant for homeowners is lower energy costs. For a typical off-gas home switching from oil heating to an air source heat pump, annual savings average £400–£600. If you combine a heat pump with insulation measures, total savings can reach £800–£1,000 per year (Energy Saving Trust, 2026).
These savings are estimates based on typical UK energy prices in 2026. Your actual savings will depend on your current heating fuel, the efficiency of your home, and how you use your heating. The Department for Energy Security and Net Zero reports that households receiving HUG funding have seen average bill reductions of 30–50% after installation (DESNZ, 2026).
You must use an MCS-certified installer to qualify for the grant
All heat pumps, solar PV systems, and certain other measures funded by HUG must be installed by a contractor accredited under the Microgeneration Certification Scheme (MCS). MCS is a quality assurance scheme that sets standards for renewable energy installations. Insulation work must meet TrustMark standards, which is a government-endorsed quality scheme for home improvements (MCS, 2026).
Your local authority will provide a list of approved installers for their HUG scheme. You cannot use an unregistered tradesperson and still receive the grant. If you choose your own installer, check they hold current MCS certification and TrustMark registration before any work begins (TrustMark, 2026).
The application process runs through your local council, not a national portal
There is no single national application form for the Home Upgrade Grant. You must apply directly to your local authority’s HUG scheme. The council will arrange a home survey to assess your property’s eligibility and recommend which measures are suitable. Approval timelines vary from 4 to 12 weeks, depending on local demand and the complexity of the survey (GOV.UK, 2026).
After the survey, the council will confirm which measures are approved and issue a grant offer. You then arrange installation with an approved contractor. The council typically pays the contractor directly, so you do not need to handle the grant money yourself. Keep copies of all correspondence and the grant offer letter for your records (DESNZ, 2026).
Grants are limited — apply early as funding is not guaranteed
Each local authority has a fixed budget for HUG phase 2, which runs until March 2027. Once the budget is spent, the scheme closes in that area. In 2025–2026, several councils exhausted their HUG budgets within weeks of opening applications. This means it is important to apply as soon as the scheme opens in your area (DESNZ, 2026).
To prepare, check your local council’s website regularly for opening dates. Gather the documents you will need in advance: your EPC certificate, proof of household income, and proof that your home is off the mains gas grid. Having these ready can speed up your application. If you miss the window in your area, you may need to wait for a future phase of the scheme or explore other grant options available through your council.
Frequently Asked Questions
The Home Upgrade Grant (HUG) is a UK government scheme that covers 100% of energy-efficiency improvements for off-gas homes. It is administered by local authorities and funded by the Department for Energy Security and Net Zero (GOV.UK, 2026).
You qualify if your home is off the mains gas grid, has an EPC rating of D to G, and your household income is below £31,000 per year or you receive means-tested benefits such as Pension Credit. Check with your local council for exact rules (GOV.UK, 2026).
The grant covers solid wall insulation, underfloor insulation, air source heat pumps, ground source heat pumps, solar PV panels, and high-heat-retention storage heaters. Measures must reduce energy use and heating bills (DESNZ, 2026).
The average Home Upgrade Grant is £10,000 to £25,000 per household, with a typical value of £15,000. The exact amount depends on which approved measures are installed and your local authority's funding (DESNZ, 2026).
Apply through your local council's website as each authority administers its own HUG programme. You need to provide proof of off-gas status, EPC rating, and household income. Contact your council for the application process (GOV.UK, 2026).
