Warm Homes Local Grant

The idea pf a Warm Homes: Local Grant was mentoned in the labour manifesto saying "We will partner with combined authorities, local and devolved governments, to roll out this plan", in government as a policy it was first more formally discussed in September 2024, with delivery due to begin in 2025. The intention is that it 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 below.

£500 million has been committed to the Warm Homes: Local Grant across 3 years as shown in the table below:

Local authorities had to apply for the funding by 1 December 2024 and all eligible local authorities that completed and submitted an EOI form by this deadline have been allocated funding. The 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.

This article is based on the government notices 'Warm Homes: Local Grant - budget allocation' and 'Warm Homes: Local Grant' dated 23 September 2024, updated 11 March 2025.

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