Do You Qualify for a Free Boiler or Heating Grant in 2025?

Boiler and heating grants are government funded programs designed to help homeowners and tenants improve the energy efficiency of their homes. These grants are part of the UK government’s broader strategy to reduce carbon emissions, combat fuel poverty, and enhance the overall energy performance of residential properties.

As energy costs continue to rise and environmental concerns become more pressing, these grants offer a valuable opportunity for eligible households to upgrade their heating systems, potentially saving money on energy bills while contributing to a greener future.

The importance of these boiler and heating grants cannot be overstated. They play a crucial role in:

• Reducing household energy consumption

• Lowering carbon emissions

• Improving home comfort

• Alleviating fuel poverty

• Supporting the UK’s commitment to achieving net-zero carbon emissions by 2050

There are three primary boiler and heating grants available for energy upgrades in the UK:

Energy Company Obligation (ECO4) Scheme

The ECO4 scheme is the latest iteration of the Energy Company Obligation, running from April 2022 to March 2026. This government-mandated program requires large energy suppliers to fund energy efficiency measures in domestic properties. The focus is on supporting low-income, vulnerable, and fuel-poor households.

Key features of ECO4:

• Targets homes with poor energy efficiency (EPC rating of D-G)

• Aims to improve homes to at least EPC band C

• Covers a range of measures, including boiler replacements and insulation

Boiler Upgrade Scheme (BUS)

Launched in April 2022, the Boiler Upgrade Scheme is part of the UK government’s Heat and Buildings Strategy. It aims to encourage property owners to install low-carbon heating systems in place of existing fossil fuel systems.

Key features of BUS:

• Provides grants for the installation of heat pumps and, in some cases, biomass boilers

• Available for domestic and small non-domestic properties in England and Wales

• Runs until 2025 with a budget of £450 million

Warm Homes: Local Grant Scheme

The Warm Homes: Local Grant scheme is a new initiative set to begin delivery in 2025. It replaces previous programs and aims to provide energy performance upgrades and low carbon heating via local authorities to eligible households in England.

Key features of Warm Homes: Local Grant:

• Targets low-income households with EPC ratings between D and G

• Available for privately owned properties (owner-occupied or privately rented)

• Offers fully funded energy-efficient upgrades, including insulation and air source heat pumps

• Homeowners can receive up to £30,000 for energy efficiency upgrades and low-carbon heating solutions

• Allocated £500 million as part of the Autumn Budget

These schemes collectively aim to improve energy efficiency, reduce carbon emissions, and alleviate fuel poverty across the UK.

The Energy Company Obligation (ECO4) scheme aims to support households in improving their energy efficiency. Here are the key eligibility criteria for free boiler and heating grants:

Household Status and Property Ownership

• Eligible: Homeowners, private tenants (with landlord permission), and social housing tenants

• Not eligible: Residents of government-owned properties

Benefits and Income

Applicants must receive at least one of the following benefits:

• Pension Credit

• Universal Credit

• Child Tax Credit

• Working Tax Credit

• Income-based Jobseeker’s Allowance

• Income-related Employment and Support Allowance

• Income Support

• Housing Benefit

• Child Benefit (subject to household income thresholds)

Child Benefit Recipients

If Child Benefit is the only qualifying benefit you receive, your household must meet these income thresholds:

• 1 child: £27,500 or less

• 2 children: £32,300 or less

• 3 children: £37,200 or less

• 4 or more children: £42,000 or less

Income Threshold (for non-benefit recipients)

Even if you don’t receive benefits, you may still qualify under the Local Authority Flexibility (LA Flex) scheme if your household income is £31,000 or less per year and you meet other specific household or low-income requirements.

Property Energy Efficiency

• The property must have an Energy Performance Certificate (EPC) rating of D, E, F, or G

• Properties with an EPC rating of C or above are generally not eligible

Existing Heating System

• The current boiler should be at least 8 years old

• Non-condensing gas boilers are prioritised for replacement

• The boiler must be the primary heating source for the property

Property Location and Energy Supply

• The property should be connected to the gas mains supply for gas boiler replacements

• Off-grid properties may be eligible for alternative heating solutions

Additional Considerations

• Valid and up-to-date Energy Performance Certificate required

• Specific requirements may apply for certain heating systems (e.g., biomass boilers in rural areas)

It’s important to note that eligibility criteria can change, and individual circumstances are assessed on a case-by-case basis.

Property Ownership and Type

• Eligible: Homeowners, private landlords, second home owners, and small to medium non-domestic buildings in England and Wales

• Not eligible: Social housing, most new-build properties, and properties owned by local councils

Existing Heating System

• Must be replacing fossil fuel heating systems (oil, gas, electric, or LPG)

• The existing system should be the primary heating source for the property

Energy Performance Certificate (EPC)

• A valid EPC is required for the property

• The EPC should show no recommendations for loft or cavity wall insulation

Property Energy Requirements

• Maximum installation capacity of 45 kWth for individual systems

• Maximum 300 kWth for shared ground loop systems

Biomass Boiler Specific Requirements

• Property must be off the gas grid

• Located in a rural area (fewer than 10,000 residents)

• Boiler must have an emissions certificate showing minimal polluting emissions

Self-Build Properties

• Eligible if built using labor or resources of the first owner

• Must never have been owned by a business or organisation

• Not part of an excluded property development

Additional Criteria

• Cannot receive multiple sources of public funding for the same installation

• Installation must be commissioned within 120 days of grant application

Visit Boiler upgrade scheme page for more information.

The eligibility criteria for the Warm Homes: Local Grant scheme in 2025 include several key requirements:

1. Property Requirements: The property must be located in England, have an Energy Performance Certificate (EPC) rating between D and G, and be privately owned (either owner-occupied or privately rented). Typically, eligible properties are in Council Tax bands A-D.

2. Household Eligibility: Households can qualify through income or benefits-based pathways. For income-based eligibility, the gross annual household income must be below £36,000, or the income must be below specified thresholds after housing costs, which vary based on household composition. Alternatively, households receiving means-tested benefits such as Housing Benefit, Universal Credit, JSA, ESA, Income Support, or Pension Credit are also eligible.

3. Flexible Eligibility: In some cases, households may qualify if they meet at least two specific conditions, such as receiving a Council Tax reduction, having a long-term health condition affected by a cold home, or receiving free school meals. Additionally, properties located in postcodes within Income Deciles 1-2 of the Indices of Multiple Deprivation (IMD) may be eligible.

4. Landlord Eligibility: Private landlords can receive funding for one eligible home fully funded per landlord, with a 50% cost contribution required for additional homes.

5. Funding Amount: Eligible households can receive up to £30,000, split between energy efficiency upgrades and low-carbon heating solutions.

6. Excluded Properties: New build and self-built homes, properties with EPC ratings A-C, and those in Council Tax bands E-G are generally excluded from the scheme.

Applicants will need to provide evidence to support their eligibility claims, such as proof of income, benefits, or health conditions. The scheme aims to improve energy efficiency, reduce carbon emissions, and alleviate fuel poverty across England.

Visit page Warm Homes: Local Grant for more

The financial support available through boiler and heating grants varies depending on the scheme and the type of heating system being installed. Here’s a breakdown of the grant amounts:

ECO4 Scheme

• Full Coverage: For most eligible households, the ECO4 scheme typically covers the entire cost of boiler replacement.

• Partial Contributions: In some instances, homeowners may need to make a partial contribution towards the cost. This is usually determined based on the specific circumstances of the household and the work required.

Boiler Upgrade Scheme (BUS)

The BUS offers fixed grant amounts for different types of low-carbon heating systems:

• Air Source Heat Pumps: £5,000 grant

• Ground Source Heat Pumps: £6,000 grant

• Biomass Boilers: £5,000 grant (only available for eligible properties in rural areas)

Warm Homes: Local Grant

• Funding Amount: Up to £30,000 per household, split between energy efficiency upgrades and low-carbon heating solutions.

• Full Coverage: For owner-occupiers, the scheme typically covers the entire cost of upgrades.

• Landlord Contributions: Private landlords receive full funding for one home, with a 50% cost contribution required for additional properties.

It’s important to note that these grant amounts are intended to offset a significant portion of the installation costs, but may not cover the entire expense in all cases. The Warm Homes: Local Grant scheme, in particular, offers substantial support for comprehensive home energy improvements.

The grant amounts are subject to available funding and may change over time. It’s advisable to check the latest information from official sources or approved installers when considering an application.