It launched in April 2025 and is scheduled to run until 2028. It was introduced as a replacement for the Local Authority Delivery (LAD) and Home Upgrade Grant (HUG) schemes.
Warm Homes: Local Grant
The Warm Homes: Local Grant is a Government-backed funding scheme. It is supporting energy efficiency retrofit projects delivered by English local authorities on behalf of private homeowners and private landlords.
WH:LG is principally designed to aid progress towards net zero and to help reduce fuel poverty. It seeks to enable fabric-first decarbonisation measures and to accelerate the take-up of low carbon heating technologies. Its eligibility criteria are intended to ensure that it will support low-income households, regardless of whether they are on or off the gas grid.
Note that a separate mechanism – the Warm Homes: Social Housing Fund – exists to support large-scale decarbonisation programmes focused on social rather than private housing.
An opportunity to address fuel poverty
Funding support is aimed at low-income private homeowners and at landlords who have tenants on low incomes. In order to be eligible, properties must have an EPC rating of bands D to G. In keeping with best practice, the funding can also be used to support improvements to a small proportion (10%) of ‘infill’ social housing properties.
The retrofit measures will need to be tailored to individual homes so that the most appropriate measures are installed. Occupants on a low income will not be required to contribute to the cost of upgrades.
Key Dates
Delivery Window Open
1st April 2025
Delivery Window Duration
3 to 5 years
Importantly, the Warm Homes: Local Grant scheme can potentially be utilised in combination with Wave 3 of the Warm Homes: Social Housing Fund to support improvements to both privately-owned and social housing properties concurrently. This encourages a true area-based approach and has the potential to generate valuable economies of scale. We have considerable expertise in delivering effective retrofit measures via both schemes.
How SBS can help
We are one of the UK’s largest decarbonisation contractors. We have extensive experience of managing DESNZ-funded projects to MCS / PAS 2030 and 2035 standards. These include WH:LG -supported schemes that we are now delivering in partnership with English local authorities. A good example is the Warm Homes: North East Derbyshire scheme.
As a partner, we can take responsibility for as many aspects of the customer journey as required, providing an end-to-end retrofit solution. This can include customer acquisition, retrofit advice, energy surveys (assessments), the direct installation of measures, and grant administration and reporting.
Our services include providing energy efficiency advice through our experienced retrofit specialists, who are qualified to Level 3 Retrofit Advice Standards as a minimum. Our wider private sector team is composed of similarly qualified retrofit professionals: assessors, advisors, coordinators, and designers. Together, we can provide energy efficiency and home improvement plans that are carefully tailored to meet property, household and Local Grant criteria.
Find Out More
For more details, please download our Warm Homes: Local Grant Guidance or call us on 01695 553 920
Eligible Measures
Subject to properties meeting other eligibility criteria, WH:LG funding can potentially support the following retrofit measures:
- ‘Fabric-first’ energy efficiency improvements – such as the installation of insulation, draught-proofing and replacement doors and windows.
- Low-carbon heating systems – such as heat pumps.
- Microgeneration technologies – such as solar PV panels and battery storage systems.
Warm Homes: Local Grant Guidance
Funding and Tenure
Where private homeowners meet the eligibility criteria, the grant will provide full funding for relevant retrofit measures and low-carbon heating upgrades.
It will also provide full funding for one eligible property per landlord, though any additional private rented properties will require a 50% cost contribution. Where a scheme includes infill properties, social housing landlords must likewise contribute 50% of the costs.
Cost Caps
Like previous schemes, the Warm Homes: Local Grant is subject to certain cost caps.
Energy performance upgrades
£15k per home
Low carbon heating
£15k per home
Cost caps can be averaged across a project and must be met by project closure
Energy performance upgrades include fabric-first measures such as the installation of new insulation, double glazing, replacement doors etc. They also include smart controls, battery storage and microgeneration systems such as solar PV. Eligible low carbon heating systems include heat pumps and storage heaters.
Eligibility – Household Income
DESNZ identifies three pathways through which households may be deemed eligible on the basis of income.
Pathway 1: Households which reside within Indices of Multiple Deprivation (IMD) Income Deciles (ID) 1-2 areas. (See DESNZ list of eligible postcodes.)
Pathway 2: Households which can demonstrate receipt of a specified means-tested benefit or that they are eligible via route 2 of ECO Flex.
Pathway 3: Households with an annual gross income below £36,000 or the ‘after housing costs’ threshold in line with DESNZ-published equivalisation tables.
Note that means-tested benefits include: Housing Benefit, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Income Support, Pension Credit (savings and guarantee), Universal Credit, Working Tax Credit, and Child Tax Credit.
Those that are not eligible can make use of our Home Hero package. It seeks to bridge the gap between grants, savings and the cost of green home improvements. It does so by sourcing appropriate funding, by providing access to specialist finance and by managing the delivery of installations on the homeowner’s / landlord’s behalf.
Eligibility – Properties and Measures
Properties must have an EPC rating within bands D to G to be eligible.
Park homes must have an equivalent level of energy performance.
The work should seek to bring properties up to EPC Band C or better.
Retrofit measures must be compatible with the PAS 2035:2023 framework and must be installed in accordance with the latest PAS 2030:2023 or MCS standards.
Installers must be Trustmark registered and PAS 2030:2023 certified for energy performance measures and/or MCS certified for low carbon heating measures.
Funding may be applied to any energy improvement or heating measures that are compatible with the latest Reduced Data Standard Assessment Procedure (RdSAP) methodology.
Unlike some previous schemes, the funding is available regardless of the primary heating system.
Exclusions
New-build or self-built properties that have not previously been occupied.
Social housing properties (except for a maximum 10% infill).
Measures involving new fossil fuel heating systems.
In addition to our own experience and expertise, our clients can also take advantage of the skills and resources of our sister companies:
Retrofit service consultancy, consumer funding and fintech provider
Residential smart technology solutions
Decarbonisation products supplier
