Boiler Upgrade Scheme (BUS)
Important change from April 2026: The requirement to have loft and cavity wall insulation in place before applying for the BUS grant was removed. You no longer need to clear insulation recommendations from your EPC before accessing the £7,500 grant. This has opened the scheme to a significantly wider group of homeowners who were previously blocked by the insulation condition.
ECO4 — Energy Company Obligation
Warm Homes: Local Grant
The WH:LG is delivered by local councils, not private installers. You should not need to deal with installers directly — the council arranges the works if you qualify. Some councils have already met their Year 1 targets and are holding applications for Year 2 funding from April 2026. Apply early, even if told to wait.
The Warm Homes Plan — the overarching framework
The Warm Homes Plan is not itself a scheme you apply to — it is the Labour government's £15 billion overarching strategy for home energy efficiency, published 21 January 2026. It brings together BUS, ECO4, WH:LG, and new programmes under one framework. Key elements:
| Component | Amount | Who | Status |
|---|---|---|---|
| Boiler Upgrade Scheme | £7,500–£9,000 | All homeowners, E&W | Open |
| ECO4 | £7k–£20k+ | Low income, benefits | Ends Dec 2026 |
| WH: Local Grant | Up to £30,000 | Low income, EPC D-G, England | Open via councils |
| WH: Social Housing Fund | Funded direct | Social housing tenants | Running now |
| £5bn Warm Homes Fund (loans) | 0% or low interest | All homeowners | Confirmed, detail TBC |
| Successor to ECO4 | TBC | Low income — via WHP | Launches Jan 2027 |
| Great British Insulation Scheme | Ending | Broader income bands | Winding down 2026 |
The £5 billion Warm Homes Fund — announced by the government as a loan facility for solar panels, batteries, and heat pumps — is confirmed in principle but has not yet opened for applications as of May 2026. It is expected to offer zero or very low interest rates to homeowners who do not qualify for outright grants. Watch the Ofgem and DESNZ websites for the launch date.
Scotland: Home Energy Scotland (HES) Grant and Loan
Scotland operates its own home energy scheme through the Scottish Government, separate from all England and Wales schemes. The single point of contact for Scottish homeowners is Home Energy Scotland: 0808 808 2282 (free, Mon–Fri 8am–8pm, Sat 9am–5pm). They act as a gateway to all Scottish energy schemes and will assess which you qualify for in a single call.
The ECO4 scheme also operates in Scotland — Scottish households on qualifying benefits or below LA Flex income thresholds can apply through energy suppliers. Scotland therefore has three potential routes running simultaneously: HES Grant/Loan, BUS, and ECO4. Home Energy Scotland will identify which combination applies to your circumstances.
Green mortgages, loans and bank schemes
The least-known dimension of home decarbonisation funding is the parallel ecosystem of bank and lender products. There are now 27 unsecured green loan products available in 2025 — up from just nine in 2021 — introduced by lenders ranging from high-street banks like Barclays to specialist lenders like Zopa Bank. These do not require benefit eligibility or EPC rating conditions — they are available to anyone with a mortgage or who can access personal finance.
The remortgage timing opportunity: An estimated 1.8 million UK fixed-rate mortgages expire in 2026. If your fixed rate is ending, this is the optimal moment to explore a green remortgage — the rate differential between a standard remortgage and a green remortgage product may be sufficient to help fund solar panels, insulation, or a heat pump at lower cost than a separate loan.
Stacking grants: how to combine multiple schemes
The grant landscape allows — and in many cases encourages — combining multiple schemes. Here are the most powerful combinations available in 2026:
| Scenario | Schemes available | Max combined funding | Notes |
|---|---|---|---|
| Scotland — rural, any income, heat pump | HES grant £9k + BUS £7,500 | £16,500 grant | Can cover full install. No means test for HES |
| Scotland — any income, heat pump | HES grant £7,500 + BUS £7,500 + HES 0% loan £7,500 | £22,500 total | Loan is interest-free, 10yr repayment |
| England — off-gas, oil/LPG, any income, heat pump | BUS oil uplift £9,000 + NatWest 0% £20,000 | £29,000 | BUS July 2026 uplift; bank loan for remainder |
| England — on benefits, EPC D-G, any fuel | WH:LG £30,000 (heat pump + insulation) | £30,000 free | Via local council; covers insulation + heat pump |
| England — low income, on benefits, any fuel | ECO4 (free) + BUS £7,500 | £7,500 + free ECO4 | ECO4 for insulation/boiler; BUS for heat pump |
| England — any income, gas, heat pump | BUS £7,500 + NatWest 0% loan | £27,500 | BUS reduces install cost; loan covers remainder |
| England — remortgaging in 2026, solar + heat pump | BUS £7,500 + green remortgage additional borrowing | Variable | Time remortgage with install for best financing |
Key stacking rules to know: BUS can be combined with HES in Scotland, with WH:LG only in limited circumstances (usually one or the other applies), and with bank lending freely. You cannot claim two whole-house heating systems under any single scheme — only one primary heat source per application. ECO4 and WH:LG cannot both be applied to the same measure in the same property, but may cover different improvements in the same home.