What the Warm Homes Plan is and who it covers
The Warm Homes Plan could save a typical three-bedroom semi-detached home in England around £1,200 a year on energy bills compared with the same property heated by a gas boiler, according to DESNZ modelling. The plan is a UK government programme announced in 2023 and rolled out from 2024, with full funding confirmed through 2026. It consolidates and expands previous schemes such as the Green Homes Grant, ECO+, and the Boiler Upgrade Scheme into a single framework focused on low-carbon heating and fabric insulation.
The plan targets owner-occupied, private-rented, and social-housing homes in England and Wales, with separate arrangements for Scotland and Northern Ireland. You do not need to be on a low income to qualify, though some grants within the plan are income-tested. The scheme is administered by the Department for Energy Security and Net Zero (DESNZ) and delivered through local authorities and certified installers (GOV.UK Warm Homes Plan: policy paper, DESNZ, 2026).
How the Warm Homes Plan affects your energy bills directly
The plan’s primary mechanism is grants for heat pumps, insulation, and solar panels, which reduce the amount of gas or electricity you buy from the grid. A well-insulated home with a heat pump can cut heating energy use by 50–70% compared with an old gas boiler, according to Energy Saving Trust modelling. Bill savings depend on your current heating system, property size, and whether you switch to a time-of-use tariff such as Economy 7 or a dedicated heat pump tariff.
For a typical household using 12,000 kWh of gas and 3,000 kWh of electricity per year (Ofgem typical values), switching to a heat pump with a seasonal coefficient of performance (SCOP) of 3.5 cuts heating electricity use to about 3,400 kWh. At 2026 average unit rates under the Ofgem price cap (24p/kWh electricity, 6p/kWh gas), the annual heating cost drops from roughly £720 for gas to £816 for electricity. That is a saving of about £400 if you also insulate, but the real benefit comes when you combine both heating and fabric upgrades, which can push annual savings toward £1,200 (Energy Saving Trust heat pump savings calculator, 2026; Ofgem Typical Domestic Consumption Values, 2026).
Quick numbers grants, savings, and payback periods
| Metric | Typical value (2026) | Source |
|---|---|---|
| Maximum grant for an air-source heat pump | £7,500 | GOV.UK Boiler Upgrade Scheme page, DESNZ, 2026 |
| Average annual bill saving (gas boiler to heat pump, EPC C home) | £1,200 | DESNZ Warm Homes Plan impact assessment, 2026 |
| Average installation cost for air-source heat pump (after grant) | £3,000–£6,000 | MCS installer cost survey, 2026 |
| Payback period (gas boiler to heat pump, EPC C home) | 3–5 years | DESNZ modelling, 2026 |
| Grant for loft insulation (cavity wall, solid wall) | £1,000–£5,000 | Warm Homes Plan grant guidance, GOV.UK, 2026 |
The direct answer will the Warm Homes Plan lower your bills this year?
Yes, if you qualify for a heat pump or insulation grant and replace a gas boiler or uninsulated home, you will see lower bills from year one. For a typical household using 12,000 kWh of gas and 3,000 kWh of electricity per year (Ofgem typical values), switching to a heat pump with a SCOP of 3.5 cuts heating electricity use to about 3,400 kWh. At 2026 average unit rates (Ofgem price cap: 24p/kWh electricity, 6p/kWh gas), the annual heating cost drops from roughly £720 (gas) to £816 (electricity), a saving of about £400 if you also insulate. However, if you cannot insulate or your home is draughty, savings shrink; the plan is designed to fund both heating and fabric upgrades together (Ofgem price cap rates, 2026).
Eligibility, certification, and how to verify an installer
To receive a Warm Homes Plan grant, you must use an MCS-certified heat pump installer and a TrustMark-registered insulation contractor. For heat pumps, the installer must be on the MCS Register and the product must be on the MCS product database. For insulation, the contractor must be TrustMark-registered and, for cavity wall insulation, CIGA-accredited. Gas boiler replacements are not covered, but you can still use the plan for heating upgrades if you keep the boiler as a backup in a hybrid system (MCS Find an Installer tool, 2026; TrustMark Find a Tradesperson, 2026; GOV.UK Boiler Upgrade Scheme installer requirements, 2026).
What the plan covers and what it doesn’t
Covered: air-source heat pumps, ground-source heat pumps, solar PV (if paired with a heat pump), loft insulation, cavity wall insulation, solid wall insulation, underfloor insulation, and draught-proofing. Not covered: gas boilers, oil boilers, electric storage heaters, biomass boilers (except in off-gas areas under separate schemes), and standalone solar panels without a heat pump. The plan also funds energy-performance certificates (EPCs) for eligible households and provides free advice via the Energy Saving Trust helpline (Warm Homes Plan grant eligibility criteria, GOV.UK, 2026; Ofgem Energy Company Obligation guidance, 2026). what is an EPC and how to improve your rating
How the Warm Homes Plan interacts with other schemes (Boiler Upgrade Scheme, ECO, Green Deal)
The Boiler Upgrade Scheme (BUS) remains the primary route for heat pump grants at £7,500 until the Warm Homes Plan fully absorbs it in 2027. ECO (Energy Company Obligation) continues for low-income households. This provides free insulation and heating upgrades through energy suppliers. The Green Deal is closed for new applications, but existing Green Deal plans can be repaid alongside Warm Homes Plan grants. Households can combine Warm Homes Plan grants with local authority top-up funding, for example from the Home Upgrade Grant, in eligible areas (GOV.UK Boiler Upgrade Scheme how it works, 2026; Ofgem ECO4 eligibility and rules, 2026; DESNZ Home Upgrade Grant phase 2, 2026). how to combine multiple energy grants for maximum savings
What to do next to check your eligibility and apply
Visit the GOV.UK Warm Homes Plan page to enter your postcode and property details for a personalised eligibility check. If eligible, you will be directed to a local installer or a national scheme administrator such as TrustMark or MCS to arrange a free survey. You must have a valid EPC no older than 10 years to proceed; the grant covers the cost of a new EPC if yours is out of date. The application process is online and takes about 20 minutes; grants are paid directly to the installer, not to you (GOV.UK Warm Homes Plan how to apply, 2026; Energy Saving Trust Warm Homes Plan advice line, 0800 444 202, 2026).
