There are two main government grants for upgrading your home’s heating in England right now, and most people only know about one of them. The Boiler Upgrade Scheme (BUS) gets all the attention — it’s the £7,500 grant for heat pumps, available to most homeowners regardless of income. But there’s a second scheme that’s considerably more generous for those who qualify: the Warm Homes Local Grant, which can cover up to £30,000 worth of improvements and is specifically designed for lower-income households.

If your income is under £36,000 a year, or you receive means-tested benefits, this is the one you should be looking at first.

What the Warm Homes Local Grant Covers

The scheme runs two separate funding streams and you can potentially access both.

The first is up to £15,000 towards a low-carbon heating system — almost always an air source heat pump for most homes, though ground source heat pumps and heat network connections are also eligible. Unlike the BUS, this covers all heating fuel types, so it applies whether you’re currently on gas, oil, or electric heating.

The second stream is up to £15,000 for insulation measures. This can include loft insulation, cavity wall insulation, external wall insulation for solid-wall properties, underfloor insulation, and double or triple glazing where the local authority agrees the measures are appropriate.

Combine both streams and you could get up to £30,000 worth of work funded. That’s not a loan — it’s a grant, meaning you don’t pay it back.

The scheme can also fund solar panels where these are deemed appropriate alongside a heat pump installation, and smart heating controls as part of a broader package.

Who Qualifies

Eligibility has two components: an income or benefit test, and a property test.

On the income side, you need either a household income below £36,000 per year, or to be receiving a qualifying means-tested benefit. Those benefits include Universal Credit, Pension Credit (both Guarantee and Savings), Housing Benefit, Income Support, income-related Employment and Support Allowance, income-based Jobseeker’s Allowance, and the Working Tax Credit and Child Tax Credit low-income variants.

On the property side, your home needs an Energy Performance Certificate rating of D, E, F, or G. Homes already rated A, B, or C don’t qualify — the scheme is targeted at the homes that most need improvement.

The scheme covers owner-occupiers and private tenants in England. If you’re renting privately, you’ll need your landlord’s permission for any work, and landlords can’t claim on behalf of their tenants directly.

How It Works in Practice

Unlike the BUS, which you apply for directly via the installer, the Warm Homes Local Grant is administered by your local authority. This means the process varies somewhat depending on where you live — some councils are further along in rolling out the scheme than others.

The practical steps are: contact your local council and ask about the Warm Homes Local Grant specifically (not the wider Warm Homes Plan — the local grant is a distinct scheme). They’ll typically carry out an assessment of your property, check your eligibility, and then commission work through their approved installer network.

Because the council organises the work, you don’t need to find your own installer or manage the procurement. The downside is that waiting times vary significantly by area, and some local authorities are only now getting their delivery programmes running.

The scheme runs until March 2028, which sounds like plenty of time, but councils are working through waiting lists that are already building in many areas. If you think you qualify, contacting your council sooner rather than later is sensible.

How This Compares to the BUS

The Boiler Upgrade Scheme and the Warm Homes Local Grant serve different populations and it’s worth being clear about which one applies to you.

BUS: £7,500 towards a heat pump. Available regardless of income. You find your own MCS-certified installer, they handle the grant application, you pay the difference. Works well for homeowners who can fund the remaining installation cost themselves.

Warm Homes Local Grant: Up to £30,000 combined for heat pump plus insulation. Requires income under £36,000 or means-tested benefits. Property must be EPC D or lower. Administered by your local council, which organises the installation on your behalf.

You cannot claim both grants for the same measures. But it’s worth checking which scheme gives you better coverage before you proceed.

If you own your home outright and your income is above the threshold, BUS is your route. If you’re on a lower income and your home has an EPC rating of D or worse, the Warm Homes Local Grant could fund a much more comprehensive upgrade — heat pump, insulation, and potentially solar — at no cost to you.

Finding Your Local Council

The scheme is delivered in England only. Scotland, Wales, and Northern Ireland have separate schemes with different structures — Home Energy Scotland in Scotland offers up to £9,000 in grants and loans, for reference.

For England, search “[your council name] Warm Homes Local Grant” or contact your council directly. The gov.uk website has a postcode tool to identify your local authority if you’re not sure who to contact.