UK Government Announces Warm Homes Grant

Everything You Need to Know About the Warm Homes Grant 2025

The UK government is launching the Warm Homes Grant in 2025, an exciting initiative aimed at helping homeowners make their properties more energy-efficient. This fully funded scheme is available to those who meet certain criteria and could significantly reduce your energy costs while lowering your home's carbon footprint.

What is the Warm Homes: Local Grant?

The Warm Homes: Local Grant is an exciting new government initiative, replacing the previous Local Authority Delivery (LAD) programme. This scheme is designed to offer fully funded energy-efficient upgrades—such as insulation and air source heat pumps—to qualifying low-income homeowners and properties across England.

Unlike the Boiler Upgrade Scheme, which has broader eligibility, the Warm Homes Grant is specifically targeted at supporting low-income households. It focuses on improving energy efficiency and helping these homes transition to low-carbon heating systems. Eligible applicants include those receiving means-tested benefits such as housing benefits, income-based Jobseeker’s or Employment and Support Allowance.

Key Details of the Warm Homes Grant

While the final eligibility criteria will be confirmed in the government’s upcoming Spending Review, here’s what we know so far:

  • Income Requirements: Household income must be £36,000 or less, or applicants must qualify through specific benefits.

  • Eligible Properties: Only properties with an Energy Performance Certificate (EPC) rating of D to G qualify.

  • Home Ownership: The grant applies to owner-occupied homes or private rental properties (with landlord support).

  • Landlord Contributions: While landlords will need to contribute 50% towards the cost of installations beyond one fully funded property, tenants won’t be required to pay anything.

  • Excluded Homes: New build and self-built homes are not eligible for the grant.

  • Funding Amount: Homeowners can receive up to £30,000, split between energy efficiency upgrades and low-carbon heating solutions.

fully funded ASHP Installations

At Alto Energy, we’re proud to be working alongside Agility Eco to deliver fully funded heat pump installations like the Warm Homes Grant. Through this partnership, qualifying homeowners can enjoy first class installations that enhance the energy efficiency of their homes and reduce heating costs.

Fully funded air source heat pump installation

Here’s what a few of our satisfied customers said about their fully funded heat pump installations:

mcs heat pump umbrella scheme

In addition to helping homeowners take advantage of the Warm Homes Grant, we’re also committed to supporting heating engineers. Our services include our popular MCS Umbrella Scheme, which simplifies the entire heat pump installation process, from design and supply to commissioning and certification. Whether you're an experienced engineer or new to heat pump installations, our comprehensive services are designed to support your business.


Free heat pump installer course

If you're looking to learn how to install air source heat pumps, we offer FREE hands on & online heat pump training, covering a number of brands and products. Sign up today by clicking below!