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Warm Homes: Local Grant for Energy Efficient Homes

The Warm Homes: Local Grant is a Government‑backed funding scheme designed to support energy efficiency and low‑carbon upgrades for privately owned homes across England. This funding is delivered via participating local authorities and aims to help eligible households make essential home improvements that reduce energy consumption, lower bills, and improve comfort.
The grant was launched in April 2025 and is expected to run until March 2028, forming part of the UK Government’s broader Warm Homes Plan to tackle fuel poverty and support progress toward Net Zero carbon targets.
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We provide our clients with three key benefits:

Extensive experience in the decarbonisation sector

a proven track record of delivering PAS-compliant retrofit schemes

the capability to achieve substantial savings and efficiencies through large-scale project delivery

What the Scheme Aims to Achieve

The Warm Homes: Local Grant focuses on delivering energy performance upgrades for privately owned homes that currently have low energy performance. It supports fabric‑first decarbonisation measures and helps accelerate the adoption of low‑carbon heating technologies when appropriate.

  • Improve energy efficiency of low‑performing homes
  • Reduce household energy bills
  • Lower carbon emissions from residential buildings
  • Reduce fuel poverty for eligible households
  • Support the uptake of low‑carbon heating systems
Being early adopters has given us invaluable insights, enabling fast project mobilisation while maintaining full compliance with all industry standards. Our success comes from a collaborative, partnership-driven approach that ensures every retrofit decarbonisation project runs smoothly and efficiently.

Funding & Delivery Window

The Warm Homes: Local Grant is delivered by local authorities on behalf of the Department for Energy Security and Net Zero (DESNZ). The delivery window runs from 1st April 2025 through to 31st March 2028, during which eligible improvements can be installed.
A total of £500 million has been allocated for this scheme across the delivery period, allowing local authorities to support eligible homeowners and private landlords with funded energy upgrades.

Who Can Benefit

Warm Homes: Local Grant is designed primarily for privately owned homes in England that have poor energy performance. Eligible beneficiaries include:

Private Homeowners

Owner‑occupiers with homes that meet the scheme criteria can receive funded energy performance improvements at no direct cost.

Private Landlords

Private landlords can access the scheme on behalf of their tenants. In most cases, the first eligible property treated is fully funded, while additional properties may require a contribution from the landlord to cover part of the upgrade costs.

Eligibility - Household Income

DESNZ defines three pathways for household income eligibility:

Pathway 1

Households residing within Indices of Multiple Deprivation (IMD) Income Deciles 1–2 areas.

Pathway 2

Households receiving specified means-tested benefits, or eligible via ECO Flex route 2.

Pathway 3

Households with an annual gross income below £36,000, or below the ‘after housing costs’ threshold in line with DESNZ equivalisation tables.
Means-tested benefits include: Housing Benefit, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Income Support, Pension Credit (savings and guarantee), Universal Credit, Working Tax Credit, and Child Tax Credit.

Eligibility - Properties and Measures

To qualify, properties and retrofit measures must meet the following criteria:
We work closely with clients to help meet key Wave 3 assessment criteria and strengthen strategic, delivery and commercial outcomes.

Our Completed Projects

We have successfully completed contracts regarding retrofit heating systems and insulation upgrades under the Ofgem schemes commonly known as ECO and GBIS.

Our Completed Projects

We have successfully completed contracts regarding retrofit heating systems and insulation upgrades under the Ofgem schemes commonly known as ECO and GBIS.

Measures Covered by the Grant

Once approved, local authorities can install a range of energy performance and low‑carbon measures tailored to the needs of each home. Eligible measures may include:

Energy Performance Upgrades

Wall insulation

Loft insulation
Floor insulation
Solar photovoltaic (PV) panels
Draft proofing and ventilation improvements

Low‑Carbon Heating

Air source heat pumps and other low‑carbon heating technologies

Once approved, local authorities can install a range of energy performance and low‑carbon measures tailored to the needs of each home. Eligible measures may include:

Costs & Contributions

For eligible households, upgrade costs are funded through the grant and managed by the local authority, meaning homeowners do not pay directly for approved measures.
In the case of private landlords, the first property treated under the scheme may be fully funded, while subsequent properties generally require the landlord to contribute a portion of the costs.
Local authorities work with approved installers to plan and deliver the improvements, ensuring every measure is installed correctly and to the required standards.

Our Project

We work with housing associations, local authorities, developers, and homeowners to deliver high-quality retrofit and insulation projects that improve building performance and reduce carbon emissions.

How the Scheme Works

Once a local authority has received funding and your household has been identified as eligible:

A home survey will be arranged to assess the property’s energy performance and determine the appropriate measures.

A tailored improvement plan will be developed for the home.

The local council will organise and fund the installation of the agreed upgrades.

You will not be charged for the approved energy‑saving measures as long as eligibility is maintained.

How We Can Help

Berks Insulation has experience working alongside local authorities and retrofit delivery partners to support schemes like the Warm Homes: Local Grant. We can help with:

End‑to‑end retrofit service delivery

Energy assessments and home surveys

Installation of insulation and low carbon measures

Compliance and reporting support

Cost Caps

The Warm Homes: Local Grant, like previous schemes, operates under specific cost caps:

Cost caps can be averaged across a project and must be met by the project closure.

Measure
Maximum Funding per Home
Energy Performance Upgrades
£15,000
Low Carbon Heating
£15,000
Energy performance upgrades include fabric-first measures such as insulation, double glazing, replacement doors, smart controls, battery storage, and microgeneration systems like solar PV.
Low-carbon heating systems eligible for funding include heat pumps and storage heaters.

Exclusions

The grant does not cover:

Get Started Today

Take the next step toward a warmer, more energy-efficient home today.
Berks Insulation
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