UK heating grants 2026:
Introduction
If you’ve been looking into a heat pump grant this year, you’ve probably run into three names that all sound like they should mean the same thing: the Boiler Upgrade Scheme, ECO4, and the Warm Homes Plan. They’re not interchangeable, and which one applies to you depends less on what you want to install and more on your income, your property, and your timing. Some of this is changing fast, too.
ECO4 has a closing date, BUS has just been extended to cover more fuel types, and the Warm Homes Plan is still rolling out in stages. This guide breaks down what each scheme actually covers, who qualifies, and which one you should be applying for right now.
Quick answers
In a hurry? Here’s the short answer
- Want a heat pump and can cover the remaining cost after a grant? → Boiler Upgrade Scheme (BUS)
- On qualifying benefits, or in a low-income or fuel-poor household? → ECO4 (while it’s still open) or the Warm Homes Local Grant
- Want help with insulation or solar but don’t qualify for a free grant? → Warm Homes Fund loans (rolling out)
What each scheme actually is
- Boiler Upgrade Scheme (BUS) — universal, no means testing, £7,500 heat pump grant (£9,000 for oil/LPG homes since July 2026), funded to 2029/30. The BUS grants make greener heating solutions more affordable upfront, especially when considering high initial costs.
- ECO4 — supplier-obligation scheme for low-income/fuel-poor households. Still open to new applicants now, but closes 31 December 2026, with no ECO5 to follow. The main free route after that becomes the Warm Homes Local Grant, rolling out via local councils from early 2027.
- Warm Homes Plan — the umbrella government strategy, published in January 2026 and already underway; not something you apply to directly, but the framework that BUS, the Warm Homes Local Grant, and the Warm Homes Fund loans sit under. It represents the largest public investment in home energy efficiency and clean heating in British history.
Comparison table
| Boiler Upgrade Scheme (BUS) | ECO4 | Warm Homes Local Grant | |
|---|---|---|---|
| What it is | Universal heat pump installation grant | Supplier-funded free upgrades for low-income/fuel-poor households | Government-funded successor to ECO4 for low-income households |
| Grant amount | £7,500 (£9,000 for oil/LPG homes) | Varies — can cover full cost of insulation + heating upgrade | Up to £15,000 for eligible households |
| Means tested? | No — open to all homeowners | Yes — qualifying benefits or LA Flex referral | Yes — low-income criteria |
| Covers | Heat pump installation only (ASHP, GSHP, air-to-air) | Insulation, heating systems, solar | Insulation, heat pumps, solar, batteries |
| Coverage area | England and Wales | Great Britain (England, Scotland, Wales) | England (delivered via local councils) |
| Status | Open, funded to 2029/30 | Closes 31 December 2026 | Rolling out as ECO4’s replacement |
| Best for | Homeowners who can cover the remaining cost after the grant | Households on qualifying benefits wanting a free upgrade now | Low-income households after ECO4 closes |
Scotland and Wales run separate schemes — Home Energy Scotland and the Nest Warm Homes Programme — rather than these England/Wales-focused grants.
Which one am I eligible for?
1. Are you or anyone in your household on a qualifying benefit (e.g., Universal Credit, Pension Credit, or Income Support), or has your local council referred you under LA Flex?
→ You likely qualify for ECO4 (while it’s open) or the Warm Homes Local Grant. These can cover the full cost of insulation and a new heating system, including a heat pump, with nothing to pay.
2. Not on a qualifying benefit, but your home has a low EPC rating (D–G)?
→ Still worth checking ECO4/LA Flex eligibility — some routes are via EPC rating and property type rather than benefits alone. If you don’t qualify, move to BUS.
3. Are you a homeowner (not a tenant) who can cover the cost of a heat pump beyond a grant?
→ Go straight for the Boiler Upgrade Scheme. No means testing, £7,500 off (£9,000 if you’re currently on oil or LPG), and it’s funded through to 2029/30, so there’s no rush driven by a closing date. Find out how here.
4. Are you a private or social tenant?
→ You can’t apply for BUS or ECO4 yourself — your landlord does. New rules require landlords to invest in upgrades for tenants, so it’s worth raising it with them directly.
5. In Scotland or Wales?
→ None of the above quite apply. Scotland runs support through Home Energy Scotland; Wales has the Nest Warm Homes Programme. Check those directly rather than BUS/ECO4/Warm Homes Local Grant, which are England (and in BUS’s case, England and Wales)-focused.
6. Want solar panels or a battery, but don’t qualify for a free grant?
→ The Warm Homes Fund low/zero-interest loans are the route here, though terms are still being finalised — worth checking current status before committing.
What’s changed recently?
- EPC insulation prerequisite removed for BUS (April 2026)
- Oil/LPG grant increase to £9,000 (July 2026)
- ECO4 nine-month extension to December 2026
What to do now
If you think you are eligible for ECO4, then you may want to try applying. Although the scheme is now being phased out, there is still local eligibility in certain areas. You can read how to apply for it here.
If you are looking to install a new heat pump, biomass boiler, or heat battery and are able to pay the upfront cost less the boiler upgrade grant, then your installer will apply for you; otherwise, if you need information about the grant, you can find it here.
If you are still deciding whether a new heat pump installation is right for you, especially where full costs and savings are concerned, then you should take a look at our costs and savings guide, which will give you lots of information to help you decide. You can find it here.
FAQs
Frequently asked questions
Can I combine BUS with other grants?
In some cases, yes. BUS can potentially sit alongside insulation funding from ECO4 or the Warm Homes Local Grant if you qualify for both, since they cover different parts of the upgrade. It cannot be combined with another grant specifically for the heat pump itself. Check with your installer, since combined funding depends on how the work is packaged.
What happens after ECO4 closes?
ECO4 closes on 31 December 2026. After that, the main free route for low-income and fuel-poor households becomes the Warm Homes Local Grant, delivered through local councils rather than energy suppliers. If you’re eligible now, it’s worth applying before the December deadline rather than waiting.
Is the Warm Homes Plan itself something I apply for?
No. The Warm Homes Plan is the umbrella government strategy, not a scheme with its own application form. You apply to the individual programmes that sit under it, such as the Boiler Upgrade Scheme or the Warm Homes Local Grant, depending on which you’re eligible for.
Does Scotland or Wales get the same schemes?
Not exactly. The Boiler Upgrade Scheme covers England and Wales, while ECO4 covers all of Great Britain. Scotland runs its own support through Home Energy Scotland, and Wales also has the separate Nest Warm Homes Programme alongside BUS. Check the scheme specific to your nation rather than assuming the England-focused detail above applies directly.
Final Thoughts
There are certain obligations on the end user as well as the installers when claiming the boiler upgrade scheme grant, these obligations must be met before a claim can be paid out, there are some people who would prefer to complete the job in stages and want to do some or all of the work themselves in this case a grant would not apply and the homeowner will be free to choose their own products and works schedule themselves. Although the building regulations and hot water regs will still apply.