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Warm Homes: Local Grant – guidance for local authorities
Summary
Updated guidance for local authorities on the £500m Warm Homes: Local Grant scheme, which provides energy efficiency upgrades and low carbon heating (including heat pumps and solar panels) to low-income households in England with EPC ratings D-G. The scheme runs 2025-2028 with 271 local authorities participating.
Why it matters
Creates significant demand for heat pumps, solar panels, and energy efficiency measures, potentially supporting supply chains and installer capacity. May reduce overall electricity demand through efficiency improvements but increase heat pump connections.
Key facts
- •£500m allocated from Autumn Budget for 2025-2028 delivery
- •271 local authorities (97% of eligible) allocated funding
- •Targets households with annual income below £36,000
- •Properties must have EPC rating D-G
- •Expression of interest deadline was 1 December 2024
- •PV batteries now eligible following RdSAP10 introduction
- •Aspiration to reach EPC Band C where possible
- •Part of £3.4bn Warm Homes Plan commitment
Timeline
Effective date1 Apr 2025
Areas affected
heat pumpsrenewablesenergy efficiencyfuel povertyoff gridbehind the metergrid connections
Related programmes
ECOWarm Home DiscountNet ZeroClean Power 2030
Publisher description
Funding for local authorities to deliver energy performance and low carbon heating upgrades to low-income homes in England.
Full extracted text
This guidance is for local authorities. There is different guidance for homeowners and landlords . Update: 12 March 2026 The ‘Warm Homes: Local Grant - Mobilisation and Delivery Guidance’ (now Delivery Guidance) has been updated to include further guidance on scheme eligibility, additional funding, reporting and GMS access. Overview The Warm Homes: Local Grant will begin delivery in 2025 and will provide energy performance upgrades and low carbon heating via local authorities, to households that: are in England are low income have an Energy Performance Certificate ( EPC ) between D and G are privately owned (owner occupied or privately rented) Once in delivery local authorities will be able to install energy performance measures and low carbon heating to eligible homes in their area. Measures could include: insulation solar panels an air source heat pump if suitable Upgrades should be tailored to individual homes so that the most appropriate measures are installed. Occupants will not contribute to the cost of upgrades. The Warm Homes: Local Grant scheme has been allocated £500 million as part of the Autumn Budget. See a breakdown of funding available . Participating local authorities will use the funding to install energy performance upgrades and low carbon heating. Local authorities within the West Midlands Combined Authority (WMCA) and the Greater Manchester Combined Authority (GMCA) have received an allocation of funding as part of the government’s commitment to the Warm Homes and Public Sector Decarbonisation Devolution Programme. To learn more about this please refer to the Integrated Settlement GOV.UK page . How it works The Warm Homes: Local Grant expression of interest ( EOI ) window is now closed. Local authorities had to apply for the funding by 1 December 2024. All eligible local authorities that completed and submitted an EOI form by this deadline have been allocated funding . Delivery Assurance Check ( DAC ) Grant recipients are required to complete and submit this form as part of their Mid-Mobilisation Review and Delivery Assurance Check ( DAC ) for WH:LG . Once you have completed the form and organised your DAC date, please email the form and the required annexes to WHLG@energysecurity.gov.uk . Annexes A and B to the form were attached to your memorandum of understanding whereas annexes C, D and E can be completed in the workbook. Help and support Support is available at no cost to all local authorities participating in the Warm Homes: Local Grant from the Retrofit Information Support and Expertise ( RISE ) service . Eligible postcodes and IMD The Indices of Multiple Deprivation ( IMD ) combines multiple elements of deprivation (including unemployment, health and income). The IMD : Income Decile eligible postcode list has separated out the income element from the other deprivations and shows all postcodes in Income deciles 1-2. This list is different to the IMD 1-2, and households in IMD 1-2 will not necessarily be in Income Deciles 1-2 and vice versa. Households that are outside the IMD : Income Deciles 1-2 may still be eligible for support, if local authorities have verified that they meet the requirements under eligibility pathway 2 (low income proxies) or 3 (household income threshold). Further information is provided in the policy guidance available on this page. Warm Homes: Local Grant - policy guidance (updated 16 June 2025) PDF , 903 KB , 60 pages This file may not be suitable for users of assistive technology. Request an accessible format. If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk . Please tell us what format you need. It will help us if you say what assistive technology you use. Warm Homes: Local Grant - allocation guidance PDF , 384 KB , 30 pages Warm Homes: Local Grant - eligible postcodes (updated February 2026) MS Excel Spreadsheet , 4 MB This file may not be suitable for users of assistive technology. Request an accessible format. If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk . Please tell us what format you need. It will help us if you say what assistive technology you use. Warm Homes: Local Grant - year 1 ONLY eligible postcodes MS Excel Spreadsheet , 15.5 MB This file may not be suitable for users of assistive technology. Request an accessible format. If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk . Please tell us what format you need. It will help us if you say what assistive technology you use. Warm Homes: Local Grant - Memorandum of Understanding template PDF , 1.07 MB , 86 pages This file may not be suitable for users of assistive technology. Request an accessible format. If you use assistive technology [... truncated]