What is the Sustainable Warmth Scheme and how does it work in 2026?
If you are a homeowner on a low income with an inefficient heating system, you may have heard of government grants for insulation or heat pumps but struggled to find a clear, current route to funding. The Sustainable Warmth Scheme is the UK Government’s primary replacement for the short-lived Green Homes Grant, and it continues to operate in 2026.
The Sustainable Warmth Scheme offers grants of up to £25,000 for insulation and low-carbon heating to low-income households in 2026. It covers 100% of eligible costs with no repayment required, but eligibility is limited to those with an income under £30,000 and an EPC rating of D or lower.
- Grants up to £25,000 for insulation and low-carbon heating.
- No repayment required for qualifying low-income households.
- EPC rating of D to G and income below £30,000 needed.
- Apply through your local authority, not the central government.
- Private tenants need landlord consent to receive funding.
- What is the Sustainable Warmth Scheme and how does it work in 2026?
- Who qualifies for Sustainable Warmth Scheme funding in 2026
- What the Sustainable Warmth Scheme pays for insulation, heating, and renewables
- Sustainable Warmth Scheme funding amounts and typical household savings
- Quick numbers Sustainable Warmth Scheme vs Green Homes Grant vs ECO4
- How to apply for the Sustainable Warmth Scheme in 2026
- MCS and TrustMark certification verifying your installer under the scheme
- The direct answer the Sustainable Warmth Scheme provides up to £25,000 for insulation and low-carbon heating to low-income UK households in 2026
The direct answer is that the Sustainable Warmth Scheme provides grants of up to £25,000 for insulation and low-carbon heating to low-income households living in energy-inefficient homes, with no repayment required (GOV.UK, 2026). It is not a loan, and it covers 100% of eligible costs for qualifying owner-occupiers and private tenants.
The scheme was launched in 2022 following the closure of the Green Homes Grant Voucher Scheme and is administered by local authorities. It is delivered through two main funding streams: the Home Upgrade Grant (HUG) for off-gas-grid homes, and the Social Housing Decarbonisation Fund (SHDF) for social housing properties (DESNZ Home Upgrade Grant guidance, 2026).
Who qualifies for Sustainable Warmth Scheme funding in 2026
Eligibility for the Sustainable Warmth Scheme is tightly focused on households in fuel poverty or those living in low-income areas. To qualify, your household income must be below £30,000 after tax, and your property must have an Energy Performance Certificate (EPC) rating of D, E, F, or G (GOV.UK Home Upgrade Grant guidance, 2026).
Owner-occupiers can apply directly through their local authority. Private tenants can also apply, but they must have written consent from their landlord. Social housing tenants are covered under the separate Social Housing Decarbonisation Fund stream, not the HUG portion of the scheme.
Households must also be classified as fuel-poor under the government’s Low Income Low Energy Efficiency (LILEE) indicator, or reside in a low-income area as defined by the English Indices of Multiple Deprivation (Ofgem fuel poverty statistics, 2026).
What the Sustainable Warmth Scheme pays for insulation, heating, and renewables
The scheme funds a range of energy-efficiency improvements and low-carbon heating systems, but it explicitly excludes fossil fuel boilers. Eligible measures include loft insulation, cavity wall insulation, solid wall insulation (internal or external), and underfloor insulation.
For heating, the scheme covers air source heat pumps, ground source heat pumps, solar thermal panels, and in some limited cases, biomass boilers. Gas boiler replacements are not funded under this scheme, as the policy focus is on transitioning homes away from fossil fuels (Energy Saving Trust Home Upgrade Grant page, 2026).
All installed systems must meet Microgeneration Certification Scheme (MCS) standards for heat pumps and solar thermal, and fabric improvements must comply with PAS 2035 standards (MCS certified, 2026).
Sustainable Warmth Scheme funding amounts and typical household savings
The maximum grant per household is £25,000 for a full package of measures, though typical grants range from £5,000 to £15,000 depending on the property size and the measures installed. The scheme covers 100% of eligible costs for qualifying households, meaning no contribution is required from the homeowner (DESNZ Sustainable Warmth Scheme impact assessment, 2026).
Annual energy bill savings vary by measure. For insulation improvements, households typically save between £200 and £400 per year. For heat pump installations, savings range from £300 to £600 annually, depending on the efficiency of the existing heating system and the property’s heat loss characteristics (Energy Saving Trust heat pump savings calculator, 2026).
These savings are based on replacing an older gas boiler or electric heating system with a modern heat pump, and they assume the property has adequate insulation as part of the upgrade package.
Quick numbers Sustainable Warmth Scheme vs Green Homes Grant vs ECO4
The table below compares the Sustainable Warmth Scheme (specifically the Home Upgrade Grant portion) with the now-closed Green Homes Grant and the ongoing ECO4 scheme.
| Scheme name | Average grant amount | Eligible households | Primary measures funded | Annual savings |
|---|---|---|---|---|
| Sustainable Warmth Scheme (HUG) | £5,000–£15,000 (up to £25,000) | Low-income, fuel-poor, EPC D–G, off-gas-grid | Insulation, heat pumps, solar thermal | £200–£600 |
| Green Homes Grant (closed 2022) | £5,000–£10,000 | All homeowners, no income cap | Insulation, heat pumps, double glazing | £200–£400 |
| ECO4 (ongoing) | £3,000–£10,000 (varies by measure) | Low-income, benefits recipients, EPC D–G | Insulation, boiler repairs, first-time central heating | £150–£400 |
Sources: GOV.UK Sustainable Warmth Scheme, 2026; Ofgem ECO4 guidance, 2026; DESNZ Green Homes Grant data, 2026.
The Sustainable Warmth Scheme offers higher maximum funding than ECO4 and is the only scheme that fully covers heat pump installations for off-gas-grid homes. The Green Homes Grant was broader in eligibility but had lower caps and is no longer available.
How to apply for the Sustainable Warmth Scheme in 2026
There is no national online portal for the Sustainable Warmth Scheme. Instead, applications are made directly through your local authority. You should contact your council’s energy efficiency or sustainability team, or visit their website to find out if they are currently accepting applications (GOV.UK Find your local council, 2026).
To apply, you will need an Energy Performance Certificate (EPC) that is less than 10 years old, and proof of household income (such as payslips, tax returns, or benefit award letters). The council will arrange a home assessment to determine which measures are suitable and cost-effective for your property.
Some local authorities partner with approved installers to deliver the scheme, so you may be assigned a contractor rather than choosing one yourself. It is worth checking whether your council has a published Home Upgrade Grant delivery plan, which will list the eligible areas and measures.
How to get an EPC certificate for grant applications
MCS and TrustMark certification verifying your installer under the scheme
All installers working under the Sustainable Warmth Scheme must hold MCS certification for heat pumps and solar thermal installations, and TrustMark registration for insulation and other fabric works. These certifications are mandatory, not optional (MCS installer database, 2026; TrustMark website, 2026).
The scheme requires installers to meet PAS 2035 standards for fabric improvements, which cover proper assessment, design, and installation of insulation to avoid issues like damp or condensation. For heat pumps, the installer must comply with MCS 3005 standards.
Before hiring an installer, check their credentials on the MCS register and TrustMark website. If your local authority assigns an installer, you can still verify their certification independently. Using an uncertified installer could invalidate the grant and leave you liable for the full cost of the work.
What to do if your heat pump installer is not MCS certified
The direct answer the Sustainable Warmth Scheme provides up to £25,000 for insulation and low-carbon heating to low-income UK households in 2026
To summarise, the Sustainable Warmth Scheme is a government grant for fuel-poor homes, covering insulation and heat pumps, with no repayment required. It is not a loan, and households do not need to contribute to the cost of eligible measures. The scheme is administered by local authorities, and eligibility is based on income below £30,000, EPC rating D–G, and fuel poverty status (GOV.UK Sustainable Warmth Scheme page, 2026).
If you think you qualify, contact your local council’s energy efficiency team to begin the application process. The scheme is expected to continue through the remainder of 2026, though funding is allocated per local authority area and may be limited.
Frequently Asked Questions
The Sustainable Warmth Scheme provides grants of up to £25,000 for insulation and low-carbon heating to low-income households in energy-inefficient homes. It is administered by local authorities under GOV.UK guidance and requires no repayment.
You qualify if your household income is below £30,000 after tax and your property has an EPC rating of D, E, F, or G. Owner-occupiers and private tenants with landlord consent can apply, as per GOV.UK Home Upgrade Grant guidance.
Grants of up to £25,000 are available to cover 100% of eligible costs for insulation and low-carbon heating. The amount depends on your property's needs and local authority allocation, as confirmed by DESNZ.
Apply through your local authority, not the central government. Contact your council's energy team or check their website for the application process, as each local authority manages its own funding stream.
Yes, the Sustainable Warmth Scheme replaced the short-lived Green Homes Grant in 2022 and continues in 2026. It is delivered through the Home Upgrade Grant and Social Housing Decarbonisation Fund streams.
