LAD scheme households received an average of £7,800 per property for energy upgrades
The Local Authority Delivery (LAD) scheme was a UK government programme that gave grants to low-income households for energy efficiency improvements. It ran from 2020 to 2023 and was administered by the Department for Energy Security and Net Zero (DESNZ).
The LAD scheme UK gave an average of £7,800 per household for energy upgrades. It closed in March 2023, but similar grants are now available through the Great British Insulation Scheme and Boiler Upgrade Scheme.
- LAD scheme gave average £7,800 per property for energy upgrades.
- Over £2 billion distributed across all three phases by 2023.
- Eligibility required household income below £30,000 and EPC D-G.
- Local authorities contacted eligible households directly.
- Similar support now available via Great British Insulation Scheme.
- LAD scheme households received an average of £7,800 per property for energy upgrades
- LAD scheme eligibility depends on household income and EPC rating
- Quick numbers LAD grant amounts and upgrade costs
- LAD scheme covered insulation, heat pumps, solar panels, and more
- The LAD scheme targeted low-income households in fuel poverty
- To receive LAD funding, households had to use MCS-certified installers
- LAD scheme funding came from DESNZ and was distributed through local authorities
Households that received LAD funding got an average of £7,800 per property for upgrades such as insulation, heat pumps, and solar panels (DESNZ, Local Authority Delivery scheme: final evaluation, 2024). Across all three phases of the scheme, the government distributed over £2 billion, targeting homes with an Energy Performance Certificate (EPC) rating of D, E, F, or G.
The scheme was closed to new applications in March 2023. However, similar support is now available through the Great British Insulation Scheme and the Boiler Upgrade Scheme.
LAD scheme eligibility depends on household income and EPC rating
To qualify for a LAD grant, your household needed a gross annual income below £30,000, or an equivalent threshold set by your local authority. You also needed an EPC rating of D, E, F, or G (GOV.UK, Local Authority Delivery scheme: eligibility and application process).
The scheme prioritised owner-occupied homes and private-rented properties. Local authorities selected eligible households using data from the Energy Performance of Buildings Register, council tax records, and benefit data. You could not apply for LAD funding directly. Instead, your local authority contacted you if your property was identified as eligible.
If your home was in a social housing property, you were not eligible for LAD. The scheme was designed for low-income households in the worst-performing private-sector homes.
Quick numbers LAD grant amounts and upgrade costs
| Measure | Average grant per measure (£) | Typical cost without grant (£) | Average annual bill saving (£) | CO₂ saving per year (kg) |
|---|---|---|---|---|
| Cavity wall insulation | £1,200 | £2,000–£3,000 | £175 | 550 |
| Loft insulation | £800 | £1,000–£1,500 | £100 | 350 |
| Solid wall insulation (internal or external) | £7,500 | £10,000–£15,000 | £350 | 1,200 |
| Air source heat pump | £6,500 | £8,000–£12,000 | £250 | 1,500 |
| Ground source heat pump | £12,000 | £18,000–£25,000 | £400 | 2,200 |
| Solar PV panels (3.5 kWp system) | £4,500 | £5,500–£7,000 | £220 | 1,100 |
Figures are based on DESNZ evaluation data and Energy Saving Trust estimates (Energy Saving Trust, Home energy efficiency guide, 2026). Actual costs and savings vary by property size, location, and installer.
LAD scheme covered insulation, heat pumps, solar panels, and more
The LAD scheme paid for a range of energy-saving measures. Eligible upgrades included cavity wall insulation, loft insulation, solid wall insulation (both internal and external), air source heat pumps, ground source heat pumps, solar photovoltaic (PV) panels, and smart heating controls (GOV.UK, Local Authority Delivery scheme: eligible measures).
The scheme did not cover new windows, doors, or boilers. It was limited to fabric improvements (insulation) and heating-system upgrades that directly reduced energy demand. Solar PV panels were included only if they were installed alongside other eligible measures, such as insulation or a heat pump.
If you wanted to add these measures after the LAD work was complete, you could do so at your own cost. The scheme did not prevent you from making further upgrades later.
The LAD scheme targeted low-income households in fuel poverty
The primary goal of the LAD scheme was to reduce fuel poverty by improving the energy efficiency of the worst-performing homes in England, Wales, and Scotland. Northern Ireland had a separate programme. Over 60% of LAD-funded homes were in the lowest two income quintiles (DESNZ, Local Authority Delivery scheme: final evaluation, 2024).
The average annual bill saving for households that received LAD upgrades was approximately £250. The scheme also reduced carbon emissions by an estimated 1.2 tonnes of CO₂ per household per year. A UK Parliament impact assessment noted that the scheme delivered significant health and wellbeing benefits, particularly for households with children or elderly residents (UK Parliament, LAD scheme impact assessment, 2023).
Fuel poverty is defined as a household spending more than 10% of its income on energy. The LAD scheme helped lift thousands of households out of this category by reducing their heating costs.
To receive LAD funding, households had to use MCS-certified installers
All heat pumps and solar panels installed under the LAD scheme required Microgeneration Certification Scheme (MCS) certification for both the installer and the product. This ensures the equipment meets industry standards and is eligible for other government incentives, such as the Smart Export Guarantee (MCS, MCS certification for renewable technologies).
Insulation measures had to be installed by TrustMark-registered tradespeople. Local authorities verified compliance by checking the TrustMark database before releasing payment to the installer (TrustMark, TrustMark scheme requirements, 2026).
If you had LAD work done, your installer should have provided you with an MCS certificate for any heat pump or solar panels, and a TrustMark certificate for insulation. Keep these documents, as they may be needed if you sell your home or apply for future energy grants.
LAD scheme funding came from DESNZ and was distributed through local authorities
The Department for Energy Security and Net Zero (DESNZ) allocated LAD funds to local authorities based on fuel-poverty data and housing stock profiles. Each authority managed its own application process and decided which properties to prioritise (GOV.UK, Local Authority Delivery scheme: funding allocation).
Homeowners could not apply for LAD funding directly. Local authorities identified eligible households through council tax records, benefit data, or referrals from energy-supplier schemes. If your local authority contacted you about LAD, you did not need to pay anything upfront. The grant covered the full cost of the approved measures (DESNZ, LAD scheme: local authority guidance, 2023).
If you missed the LAD scheme, you can check whether your local authority offers alternative funding through the Home Upgrade Grant (HUG) or the Social Housing Decarbonisation Fund. check current energy grants and eligibility for your area
Frequently Asked Questions
The Local Authority Delivery (LAD) scheme was a UK government programme that gave grants for energy efficiency improvements to low-income households. It ran from 2020 to 2023 and was administered by DESNZ, with an average grant of £7,800 per property.
Households received an average of £7,800 per property for upgrades such as insulation, heat pumps and solar panels, according to the DESNZ final evaluation (2024).
Eligibility required a gross annual household income below £30,000 (or local authority equivalent) and an EPC rating of D, E, F or G, as set out by GOV.UK. The scheme is now closed to new applications.
No, the LAD scheme closed to new applications in March 2023. Similar support is now available through the Great British Insulation Scheme and the Boiler Upgrade Scheme.
The LAD scheme covered insulation, heat pumps and solar panels, among other energy efficiency measures, targeting homes with poor EPC ratings.
