The Warm Homes Plan explained

The government calls it the biggest investment in home energy upgrades in British history. Here's what's actually confirmed, what's still vapour, and what you should be doing right now.

What is the Warm Homes Plan?

Announced in January 2026, the Warm Homes Plan isn't a single scheme you can apply to — it's the government's overarching strategy for home energy efficiency. Think of it as a brand name that sits above several individual programmes, some existing and some new.

The total funding envelope is roughly £15 billion, drawn from a combination of new government grants (£1.5 billion announced in January 2026), existing programmes being brought under the umbrella, and private capital via the consumer loan scheme.

The fundamental shift from ECO4 is who pays. Under ECO, energy suppliers were obligated to fund home upgrades — and passed the cost to all customers through higher bills. Under the Warm Homes Plan, the government funds it directly. There will be no ECO5.

What's already running

Warm Homes: Local Grant

Launched in 2025, this is the most direct successor to ECO4's free-upgrade model. It provides fully funded energy efficiency improvements — up to £15,000 per home and in some cases up to £30,000 — for low-income households delivered through local councils.

Eligibility is broadly similar to ECO4: household income under £36,000, home with EPC rating D–G, privately owned or rented. The most popular measures so far have been solar panels (37% of installations) and batteries (11%), followed by insulation and heat pumps.

Funding of £500 million is available until 2028. Applications go through your local council's energy or housing team.

Warm Homes: Social Housing Fund

£754 million allocated for social landlords to retrofit properties through to 2027/28. If you're a social housing tenant, your housing association or council manages this — you don't apply directly.

Boiler Upgrade Scheme (continued)

The BUS grant of £7,500 for heat pumps was already running and has been brought under the Warm Homes Plan umbrella. It's been extended to 2030 and now also includes £2,500 grants for heat batteries — a new addition for 2026. The scheme is available to all homeowners, not just low-income households.

What's coming in 2027

Consumer loan scheme (April 2027)

The headline item for homeowners who don't qualify for free grants. The government has committed £1.7 billion to fund zero and low-interest loans for solar panels, batteries, and heat pumps. Unlike the grants, these will be available to all homeowners regardless of income.

The scheme is being designed in partnership with private lenders and the Green Finance Institute. Specific interest rates, loan caps, repayment terms, and the list of participating lenders will be published later in 2026.

What we know: rates will be "significantly below the commercial market rate," with 0% interest targeted for lower-income households. Monthly repayments are intended to be lower than the energy bill savings the upgrades deliver — meaning you'd be cash-positive from month one.

What we don't know: whether there's a maximum loan amount, whether it covers installation labour or just equipment, and which lenders will participate. These details matter enormously and aren't available yet.

Future Homes Standard

From 2026, all new-build homes must meet higher energy efficiency standards and cannot install gas boilers. This doesn't affect existing homeowners directly, but it signals the direction of travel — the government expects heat pumps and solar to be standard in new housing.

What's still unclear

A lot, frankly. The Warm Homes Plan is heavy on ambition and light on operational detail:

• Eligibility criteria for the broader programme haven't been published. If you currently qualify for ECO4, you'll likely qualify — but that's an assumption, not a guarantee.
• The transition from ECO4 (ending December 2026) to the Warm Homes Plan is not seamless. There may be a gap in the first months of 2027 where the old scheme has closed and the new one isn't yet fully operational.
• How local councils will deliver the Warm Homes: Local Grant varies enormously by area. Some councils are well-organised and processing applications quickly. Others haven't set up delivery mechanisms yet.
• The consumer loan scheme has a launch date (April 2027) but no published product terms. Homeowners can't evaluate whether to wait for it because the rates aren't known.

What you should do right now

If you're on low income or benefits: apply for ECO4 before it closes in December 2026. A guaranteed scheme that's running now is better than a promised scheme whose details aren't published. Check your eligibility with our grants checker.

If you're a homeowner considering solar or a heat pump: the Boiler Upgrade Scheme (£7,500 grant) and 0% VAT are both available now and don't require waiting for the Warm Homes Plan. Use our solar calculator or heat pump calculator to model the numbers with current incentives.

If you need financing: weigh the cost of waiting. The government loan scheme launches April 2027, but 0% VAT ends March 2027. Every month you delay is a month of energy bill savings you're not making. At current electricity prices, a well-suited solar system saves £50–£70/month — six months of delay costs you £300–£420 in savings you'll never recover.

We'll update this guide as the government publishes eligibility criteria and loan terms. Bookmark it and check back.