The government will spend £6bn over the next five years upgrading the energy efficiency of Britain’s draughtiest homes. That’s the headline from the Warm Homes Plan, a programme built to lift millions of properties to an EPC rating of C by 2035, cut household bills, and reduce carbon emissions.
As reported by AOL, the plan includes grants for loft insulation, cavity wall insulation, solar panels, and heat pumps. But as with any government scheme, the devil is in the detail, and the eligibility criteria.
Who qualifies, and who doesn’t
The Warm Homes Plan is not a universal handout. The £6bn pot is split between the Social Housing Decarbonisation Fund, the Home Upgrade Grant, and the Boiler Upgrade Scheme. Homeowners in England with an EPC rating of D or below and a household income under £31,000 are eligible for the Home Upgrade Grant, which covers up to 100% of the cost of insulation and solar panels. For the Boiler Upgrade Scheme, there is no income cap, but the property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. Ofgem confirmed the scheme’s budget to the BBC last month, noting that demand has already outstripped supply in some regions.
What it costs a typical 3-bed semi
A 3-bed semi with no loft insulation and single glazing could see heating bills of around £1,800 a year, based on typical gas usage of 12,000 kWh. Adding 270mm of loft insulation costs roughly £500 and saves about £200 annually, according to Energy Saving Trust figures. A heat pump installation, typically £10,000 to £14,000 after the £7,500 Boiler Upgrade Scheme grant, could cut bills by a further £200 to £400 a year if the home is well insulated. The catch: without proper insulation, a heat pump will struggle to heat the home efficiently, and running costs can actually be higher than a gas boiler. The government estimates that a fully upgraded home could save £400 a year on energy bills, but that figure assumes a fabric-first approach, insulation before technology.
The EPC impact
Lifting a home from an EPC rating of E to C typically requires loft insulation, cavity wall insulation, double glazing, and a modern heating system. The cost can range from £5,000 to £15,000 depending on the property’s age and size. For landlords, this is not optional, the government has confirmed that minimum energy efficiency standards for rented homes will rise to EPC C by 2028. For owner-occupiers, the Warm Homes Plan grants can cover a significant portion of the cost, but the application process requires an accredited installer and a valid EPC assessment. The Energy Saving Trust warns that uptake of grants has been slow in previous schemes due to the complexity of the application process and the shortage of trained installers.
What to do now
Homeowners on standard variable tariffs can check their eligibility for the Home Upgrade Grant through their local council’s energy advice service. The Boiler Upgrade Scheme application runs through Ofgem’s online portal, but the grant is paid to the installer, not the homeowner, so you must find a certified heat pump installer first. Applications for the Boiler Upgrade Scheme close on 31 March 2028, but the fund is allocated on a first-come, first-served basis. The Warm Homes Plan is a welcome step, but it will only work if the government fixes the installer bottleneck and simplifies the paperwork. Until then, the best first step is a free EPC assessment and a conversation with a local retrofit coordinator.
Frequently Asked Questions
The Boiler Upgrade Scheme does not require your home to be fully insulated, but your EPC must show no outstanding recommendations for loft or cavity wall insulation. If those recommendations are present, you must address them first, or the grant application will be rejected.
The Home Upgrade Grant is administered by local councils in England. You need to contact your council's energy advice service or visit gov.uk to find your local scheme. Eligibility is based on your EPC rating and household income.
