Warm Homes Plan: The £6.6bn Successor to ECO4
The Warm Homes Plan is Labour's flagship home energy programme — a five-year, £6.6 billion scheme to give lower-income households free or heavily subsidised solar panels, heat pumps, and insulation. Here's what we know, who qualifies, and what it means for your home.
Muhammad founded KilowattKit after spending hours trying to decode confusing electricity bills — and realising there were no simple, jargon-free tools to help ordinary homeowners understand their energy costs. He researches electricity rates, EV charging, solar payback, and heat pump economics across the US, UK, Canada, and Australia.
Warm Homes Plan at a Glance
Answer 6 quick questions to see if you qualify for the Warm Homes Plan, ECO4, and other UK solar grants.
What Is the Warm Homes Plan?
The Warm Homes Plan is the Labour government's flagship energy efficiency programme, announced in the October 2024 Autumn Budget with a £6.6 billion allocation over five years (2025–2030). It replaces and significantly expands on ECO4, which ends in March 2026.
Where ECO4 was funded by energy suppliers and passed costs onto all bill-payers, the Warm Homes Plan is funded directly by the Exchequer. The design goal is to lift as many lower-income households as possible out of energy poverty by installing solar panels, heat pumps, and insulation — creating long-term bill savings rather than one-off payments.
The programme has two main delivery channels: the Warm Homes Local Grant, delivered through local councils in England, and the Warm Homes Social Housing Fund, for housing associations and local authority housing stocks. Devolved nations (Scotland, Wales, Northern Ireland) receive equivalent Barnett formula funding for their own schemes.
The Two Strands Explained
Warm Homes Local Grant
Owner-occupiers & private rentersPrivate landlords can also apply for up to £5,000 per rental property to upgrade qualifying tenants' homes. The landlord must not charge rent above a Local Housing Allowance rate.
Warm Homes Social Housing Fund
Social housing providersAvailable to housing associations and local authority housing. Social landlords apply directly to DESNZ for funding to upgrade their housing stock. As a social housing tenant, contact your housing provider to ask whether upgrades are planned for your property — you do not apply directly.
Who Qualifies for the Warm Homes Local Grant?
What Does the Warm Homes Plan Cover?
Unlike ECO4's "primary + secondary measure" model, the Warm Homes Plan takes a whole-house approach — the surveyor recommends a package of improvements based on your specific home, not a prescribed menu.
How to Apply for the Warm Homes Local Grant
Applications are managed by local councils, not by a central government portal:
Councils receive funding in waves. Search "Warm Homes Local Grant [your council name]" or contact your council directly to find out their application status. Many councils publish a waitlist or interest register.
Most councils ask for basic details: your postcode, household income, benefits received, approximate EPC rating, and property type. This helps them prioritise who to survey first.
If you meet initial criteria, a council-appointed assessor visits your home to carry out a detailed energy survey. This is free. The assessor recommends the most cost-effective improvements for your specific home.
The council confirms which measures will be funded and their value. For owner-occupiers, the grant covers 100% up to the maximum. For private renters, the landlord must agree and contribute at least 50% of costs above the £5,000 tenant element.
An approved contractor carries out the work. Timelines vary by measure — solar takes 1–2 days, insulation 1 day, heat pump 1–3 days. All installations must meet PAS 2035 quality standards.
A TrustMark-registered quality checker inspects the work. You receive all warranties, MCS certificates (for solar/heat pump), and an updated EPC.
Warm Homes Plan vs ECO4: Key Differences
| Feature | Warm Homes Plan | ECO4 |
|---|---|---|
| Funding source | Government (Exchequer) | Energy suppliers |
| Budget | £6.6bn (5 years) | £4bn (4 years) |
| Income threshold | ~£36,000/year | Benefit receipt required |
| EPC requirement | D, E, F, G | D, E, F, G |
| Covers solar PV | ✅ Yes | ✅ Yes |
| Covers batteries | ✅ Expected | Limited |
| Delivery via | Local councils | Energy suppliers |
| Duration | 2025–2030 | 2022–March 2026 |
💡 After your solar panels: claim SEG payments
Once solar panels are installed through the Warm Homes Plan, you can earn money by exporting surplus electricity to the grid via the Smart Export Guarantee. Rates range from 7p to 20p per kWh.
Calculate your SEG earnings →⚠️ Beware of Warm Homes Plan scams
- • The scheme is administered through your council — not through cold callers or unsolicited emails
- • No upfront payment should ever be requested for assessment, referral, or installation
- • Verify your council's scheme by searching the council's official website directly
- • All installers must be TrustMark registered and MCS certified for solar/heat pump work
- • Report suspicious contacts to Action Fraud (0300 123 2040)
Frequently Asked Questions
What is the Warm Homes Plan?
The Warm Homes Plan is a £6.6 billion UK government programme running from 2025 to 2030, announced by the Labour government in the October 2024 Autumn Budget. It is the successor to ECO4 and is designed to help lower-income households upgrade to low-carbon heating and improve insulation. It has two main strands: the Warm Homes Local Grant (for owner-occupiers and private renters in England) and the Warm Homes Social Housing Fund (for social housing providers). Devolved nations receive equivalent funding for their own schemes.
How is the Warm Homes Plan different from ECO4?
ECO4 required households to receive a qualifying benefit (like Universal Credit or Pension Credit) AND have a poor EPC rating. The Warm Homes Plan raises the income threshold and may allow households to qualify based on income alone, without needing to be receiving a specific benefit. It also has a broader range of eligible measures and a larger budget (£6.6bn vs ECO4's £4bn). ECO4 ends March 2026; the Warm Homes Plan runs until 2030.
What is the income threshold for the Warm Homes Plan?
The Warm Homes Local Grant targets households with a combined income below approximately £36,000 per year (with lower thresholds in the most deprived areas). This is a significant expansion from ECO4, which required receipt of a means-tested benefit — roughly equivalent to incomes under £20,000–£25,000. Final income thresholds are set per local authority area and may vary. Contact your local council for the thresholds in your area.
Does the Warm Homes Plan cover solar panels?
Yes — solar PV panels are explicitly included as an eligible measure under the Warm Homes Local Grant. Unlike ECO4 where solar was a "primary measure," the Warm Homes Plan takes a more holistic, whole-house approach. An eligible household could potentially receive solar panels, a heat pump, insulation, and ventilation improvements as part of a single package — depending on what the property survey recommends and the available funding.
What EPC rating do I need for the Warm Homes Plan?
Properties with an EPC rating of D, E, F, or G are eligible under the Warm Homes Local Grant — the same EPC requirement as ECO4. The lower your EPC rating, the higher the priority for funding, as the scheme aims to tackle the most energy-inefficient homes first. If you don't have a current EPC, your local council can advise on getting one as part of the application process.
When will the Warm Homes Plan launch?
The Warm Homes Local Grant began pilot programmes through local authorities in late 2025, with full national rollout from 2026. The Social Housing Fund strand launched for social landlords from early 2026. Rollout is phased — councils receive funding allocations and manage their own waitlists. If your council is already accepting applications, you may be able to apply now; others are still in the preparation phase.
I already got ECO4 measures — can I still get the Warm Homes Plan?
Generally, there are rules to prevent "double funding" of the same measure on the same property. If you received ECO4 solar panels, you would not receive another set of solar panels under the Warm Homes Plan. However, you may be eligible for additional measures not covered by your ECO4 installation — for example, if ECO4 gave you insulation, you might qualify for a heat pump under the Warm Homes Plan. The survey process will assess what additional measures make sense.
What about Scotland, Wales, and Northern Ireland?
The Warm Homes Local Grant applies to England only. Scotland, Wales, and Northern Ireland have devolved equivalents funded via the block grant: Scotland operates Home Energy Scotland and Warmer Homes Scotland; Wales has the Warm Homes Programme (Nest and Arbed schemes); Northern Ireland operates the Affordable Warmth Scheme. These run independently and have their own eligibility criteria.
Related Guides & Tools
Sources
HM Treasury Autumn Budget 2024 (gov.uk); DESNZ Warm Homes Plan consultation response (2025); GOV.UK — Warm Homes Local Grant guidance (gov.uk/warm-homes-local-grant); MHCLG local authority allocation guidance.