The funding landscape changed substantially in January 2026, and a lot of advice still online describes the old one. Here is where things actually stand — with the caveat that scheme rules move, so check the current position before committing money.

The headline change

ECO4 closes on 31 December 2026 and there is no replacement obligation scheme. In its place sits the Warm Homes Plan, a £15bn programme announced in January 2026, delivered through grants and a new public body rather than through an obligation on energy suppliers.

The Warm Homes Plan, in outline

£15 billion over five years, with the stated ambition of upgrading up to five million homes and lifting a million families out of fuel poverty by 2030. Around £4.4bn of that is direct grant funding for installations, and a new Warm Homes Agency has been created to deliver it.

For a household, the practical routes are these.

Boiler Upgrade Scheme — the most straightforward

Now confirmed to run to 2030. It contributes a fixed grant towards a heat pump, claimed by your MCS-certified installer and taken off your quote rather than paid to you:

  • £7,500 towards an air source or ground source heat pump.
  • £9,000 for eligible off-gas-grid properties, under a temporary uplift running from 21 July 2026 to 31 March 2027.
  • £2,500 for air-to-air heat pumps and heat batteries — a newer addition, and useful for properties where a wet system is impractical.

It is not means tested. The practical catch is unchanged: your home usually needs to be reasonably insulated first, and installers will normally want a valid EPC with outstanding loft or cavity recommendations dealt with. Ofgem administers the scheme and is the authority worth checking for current rates.

Warm Homes Local Grant

Aimed at low-income households, delivered locally, and considerably larger than most people expect — up to £15,000 per property for insulation and low-carbon heating. Because it is administered through councils, eligibility and availability differ by borough, so your own local authority is the place to check rather than a national portal.

ECO4, while it lasts

Still running until 31 December 2026 following a nine-month extension. It targets households on qualifying benefits or in the worst-rated homes, and remains the deepest support available for those who qualify — but there is no carry-over, so work needs to be genuinely in train rather than merely intended. If you think you qualify, this is the one with a real deadline on it.

What every route still has in common

Assessment first. Nothing pays out on a quote alone:

  • For a heat pump under BUS, a valid EPC, and usually its insulation recommendations addressed.
  • For deeper funded work delivered under PAS 2035, a full retrofit assessment — occupancy, condition, ventilation and energy.

The scam to watch for

If someone knocks offering free insulation and wants a signature on the doorstep, stop. Legitimate funded work goes through an assessment, a coordinator and a TrustMark-registered installer. Ask which scheme it is funded by, ask for the TrustMark registration number, and check it independently. The closure of ECO4 will produce a wave of "last chance" pressure selling — treat urgency itself as the warning sign.

Position as at August 2026. Scheme rules and grant rates change; check Ofgem and your local authority before committing.