Skip to content

The Warm Homes Plan: what £15 billion actually buys you

Photo of Danny Whitfield, heating and energy writer

Written by Danny Whitfield

Heating and energy writer · Last updated 13 July 2026

Checked against GOV.UK: 10 July 2026 · Last verified: 13 July 2026

The Warm Homes Plan is the government's £15 billion plan to upgrade up to 5 million UK homes by 2030. It is the umbrella over the grants you can already claim, the £7,500 Boiler Upgrade Scheme, fully funded work through ECO4 and the Warm Homes: Local Grant, and it adds a new low-interest loan scheme for heat pumps, solar and batteries that is being phased in from 2026.

It is easy to read "Warm Homes Plan" and expect a single form to fill in. There is not one. The Plan is the pot of money and the set of rules behind the schemes, so what you actually do is claim the individual grant that fits your home. Here is what the money is split into and which parts you can use today.

What is in the Warm Homes Plan

How the £15 billion Warm Homes Plan is split
Part of the PlanFundingWhat it means for you
Boiler Upgrade Scheme£2.7bn£7,500 off a heat pump, £9,000 for oil or LPG homes from 21 July 2026. No income test.
Low-income grants£5bnFully funded heating, insulation and solar through the Warm Homes: Local Grant and the Social Housing Fund.
New consumer loans£2bn+Zero and low-interest finance for heat pumps, solar and batteries. Phased in from 2026.
Heat networks£1.1bnShared low-carbon heating for streets and blocks of flats.

Checked against GOV.UK: 10 July 2026

What you can claim right now

Three of the four parts are already open. If you own your home in England or Wales, the Boiler Upgrade Scheme takes £7,500 off a heat pump with no income test, rising to £9,000 for oil and LPG homes from 21 July 2026. If someone in the household is on a qualifying benefit, ECO4 can fund the whole job. And if your household income is under £36,000 with an EPC of D to G, the Warm Homes: Local Grant can fully fund improvements through your council. Our eligibility checker tells you which one fits in about 60 seconds.

What is coming: the loan scheme

The genuinely new part is the loan pot: £2 billion of zero and low-interest finance for heat pumps, solar panels and batteries, with a further £300 million of government support behind it. It is being phased in from 2026, aimed at households who do not qualify for a full grant but want to spread the cost of the part they pay themselves. The detail that matters, the interest rates, the loan terms and how to apply, is expected later in 2026, so treat any specific figure you see before then with caution. We will update this page when the rules are published.

Two other changes worth knowing

  • A bill cut from April 2026. The Plan pairs with an average £150 reduction on electricity bills beginning April 2026, from moving policy costs off electricity.
  • Rented homes must improve by 2030. Private rented properties will need to reach EPC band C by October 2030, which is why landlords are a growing part of who claims these grants.

Where the Plan applies

The Warm Homes Plan and its grants run in England, and the Boiler Upgrade Scheme reaches Wales too. Scotland and Northern Ireland set their own energy policy and run separate schemes. For the version where you live, see heating grants in England, Wales, Scotland or Northern Ireland.

Your questions, answered

What is the Warm Homes Plan?
It is the government's plan to cut heating bills and get homes off fossil fuels, worth £15 billion between 2025 and 2030, with a target of upgrading up to 5 million homes. It is the umbrella over the individual grants, rather than a single scheme you apply to directly.
How much is the Warm Homes Plan worth?
£15 billion over this Parliament (2025 to 2030). That includes £2.7 billion for the Boiler Upgrade Scheme, about £5 billion for low-income households, £2 billion of new consumer loans, and £1.1 billion for heat networks.
Can I apply for the Warm Homes Plan directly?
No. You apply for the individual grants that sit under it. Your MCS-certified installer claims the Boiler Upgrade Scheme for you, you go through your council for the Warm Homes: Local Grant, and ECO4 comes through your energy supplier or a TrustMark installer.
What is the Warm Homes Plan loan scheme?
A new £2 billion pot of zero and low-interest loans for heat pumps, solar panels and batteries, backed by a further £300 million of government support. It is being phased in from 2026, and the full detail on interest rates, terms and how to apply is expected later in 2026.
Does the Warm Homes Plan cover Scotland and Wales?
The Boiler Upgrade Scheme covers England and Wales, and Wales also has Warm Homes Nest. Scotland runs its own Home Energy Scotland grants and loans, and Northern Ireland has separate schemes. See our heating grants by nation pages for the local version.