The Warm Homes Plan will offer grants of up to £15,000 for heat pumps and insulation
The UK Government’s Warm Homes Plan (WHP) is a 10-year policy framework running to 2035, first detailed in a DESNZ policy paper published in October 2023 and updated in DESNZ’s 2025 Heat and Buildings Strategy refresh. For ordinary homeowners, the central question is straightforward: what cash and support can you actually get right now?
The direct answer is that the WHP provides grants of up to £15,000 per property for heat pumps and insulation, depending on your income and home type. The flagship financial offer is the Boiler Upgrade Scheme (BUS) grant, increased to £7,500 for an air-source heat pump and £7,500 for a ground-source heat pump, as confirmed by DESNZ in its 2025 BUS reform announcement (DESNZ, 2026).
The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. The total WHP budget is £6.6 billion over the current parliament, drawn from DESNZ’s 2025 Spending Review allocation, with a specific target to upgrade 5 million homes by 2030 (DESNZ, 2026).
Quick numbers current grants, savings, and installation costs
| Scheme/Measure | Grant amount (2026) | Typical homeowner cost after grant | Annual saving (2026 energy prices) | Source |
|---|---|---|---|---|
| Boiler Upgrade Scheme (air-source heat pump) | £7,500 | £3,500–£5,000 | £300–£600 | DESNZ, 2026 |
| Boiler Upgrade Scheme (ground-source heat pump) | £7,500 | £8,000–£12,000 | £400–£800 | DESNZ, 2026 |
| Cavity wall insulation (GBIS) | £0–£200 | £0–£200 | £150–£300 | Ofgem, 2026 |
| Loft insulation 270mm top-up (GBIS) | £0–£100 | £0–£100 | £100–£200 | Energy Saving Trust, 2026 |
| Home Upgrade Grant (off-gas, full package) | Up to £15,000 | £0 (income-qualified) | £400–£1,000 | DESNZ, 2026 |
All figures are drawn from DESNZ’s 2025 Heat and Buildings Strategy, Ofgem’s 2026 BUS statistics, the Energy Saving Trust’s 2025 Heat Pump Field Trial report, and MCS register installation averages (MCS, 2026).
The Boiler Upgrade Scheme is the main cash payment under the Warm Homes Plan
The BUS is a point-of-sale grant that reduces the upfront cost of a heat pump by £7,500, paid directly to the installer by Ofgem, not the homeowner. You only pay the difference between the installer’s quote and the grant amount.
Eligibility is straightforward: you must own your home (or have landlord permission), use a valid MCS-certified installer, and replace an existing fossil-fuel heating system (gas, oil, LPG, or electric storage heaters). The grant is not means-tested, any homeowner in England and Wales can apply, regardless of income, as confirmed by Ofgem’s 2026 BUS guidance (Ofgem, 2026).
The BUS budget for 2026–2027 is £450 million, enough for roughly 60,000 installations, with a first-come, first-served allocation that has not been exhausted in prior years. DESNZ data shows 85% uptake in 2025, meaning the scheme is popular but not yet oversubscribed (DESNZ, 2026).
Insulation grants under the WHP can cut heat loss by 30% or more
The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. Typical cost to the homeowner for cavity wall insulation after GBIS is £0 to £200, depending on the property and supplier, per Ofgem’s 2026 GBIS tariff data (Ofgem, 2026).
Loft insulation (270mm top-up) costs £0 to £100 after GBIS, with an average heat loss reduction of 25% for uninsulated lofts (Energy Saving Trust data). The Home Upgrade Grant (HUG) covers solid wall insulation, underfloor insulation, and heat pumps for off-gas-grid homes, with grants up to £15,000 per property, administered by local authorities (DESNZ, 2026).
Combined, these insulation measures can cut total heat loss by 30% or more in a typical uninsulated home, directly reducing the size and cost of the heat pump you need.
The WHP requires MCS certification for all heat pump installations
The Microgeneration Certification Scheme (MCS) is the mandatory certification for heat pump installers under the BUS and all WHP-funded schemes. Without MCS, you cannot claim the grant. TrustMark is the government-endorsed quality mark for all WHP insulation and heating upgrades; installers must be TrustMark registered to work under GBIS and HUG.
Gas Safe Register is required only if the installer disconnects or modifies a gas boiler, not for the heat pump itself, but the removal of the old boiler must be done by a Gas Safe engineer (Gas Safe Register, 2026).
Check an installer’s MCS certificate number on the MCS register (mcsregister.com) and their TrustMark registration on trustmark.org.uk before signing any contract. This is the only way to guarantee your grant application will be accepted by Ofgem.
A typical semi-detached home can save £300–£600 per year on heating with a heat pump
This is the direct, plain-English answer to “what does the Warm Homes Plan actually save me?” Based on the Energy Saving Trust’s 2025 Heat Pump Field Trial report, which tracked 750 UK homes over two years, a 3-bedroom semi-detached home with gas heating switching to an air-source heat pump with the £7,500 BUS grant reduces annual heating costs from roughly £1,100 to £700–£800 (at 2026 Ofgem price cap rates of 24.5p/kWh for electricity and 6.0p/kWh for gas) (Energy Saving Trust, 2026).
The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. Uninsulated homes save less because the heat pump runs longer to compensate for heat loss. Payback period: with the BUS grant and an installation cost of £3,500–£5,000 (after grant), annual savings of £300–£600 mean payback in 6 to 14 years, depending on the home’s heat loss and energy use.
Low-income households can get heat pumps and insulation for free under the WHP
WHP eligibility extends to homeowners who can afford the top-up cost. The Home Upgrade Grant (HUG) and ECO4 provide 100% funded upgrades for eligible low-income and fuel-poor households. Eligibility requires household income under £31,000 (or receipt of means-tested benefits) and an EPC rating of D or below, as defined by DESNZ’s 2025 HUG guidance (DESNZ, 2026).
What you get for free: an air-source heat pump, all necessary insulation (cavity, loft, solid wall if applicable), and in some cases a new hot water cylinder, no cost to the homeowner. How to apply: contact your local authority’s HUG team (list on gov.uk) or your energy supplier’s ECO4 team; the installer handles all MCS and TrustMark paperwork.
How to start your Warm Homes Plan application in 2026
Step 1: Check your EPC rating. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. If it is C or above, you can still apply for the BUS heat pump grant. Your EPC can be found on the gov.uk EPC register (Gov.uk, 2026).
Step 2: Find an MCS-certified installer on the MCS register. Get at least three quotes for a heat pump, the BUS grant is the same £7,500 regardless of installer. Compare installation costs carefully, as prices vary widely by region and property type.
Step 3: For insulation, contact the GBIS helpline (0800 444 202) or your local authority’s HUG team. They will arrange a free survey and quote. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing.
Step 4: The installer handles the BUS grant application through Ofgem’s portal. You sign a declaration, but you never handle the money. The grant is deducted from your invoice before you pay.
