Warm Homes Plan Heat Pumps

Warm Homes Plan Heat Pumps

The Warm Homes Plan funds heat pump installations for low-income and fuel-poor households in England through local councils, and it is the scheme most people will need to use once ECO4 closes on 31 December 2026. It is not the same as the Boiler Upgrade Scheme, which is open to all property owners regardless of income, and it is not the same as ECO4, which it replaces. Understanding what the Warm Homes Plan actually is, and what it funds, determines whether you are applying through the right route.

The heat pump element specifically sits within a scheme structure that separates funding for low carbon heating from funding for energy performance measures. That two-pot structure is the thing most coverage of the Warm Homes Plan gets wrong, and getting it wrong matters if you are trying to work out whether the full cost of a heat pump installation -- including the insulation and fabric improvements that most properties need before a heat pump performs correctly -- is covered.

What the Warm Homes Plan Actually Is

The Warm Homes Plan is the government's primary energy efficiency and low carbon heat scheme for low-income households in England from 2025 onwards. It replaces ECO4 and the Great British Insulation Scheme, which both closed or are closing in 2026, and it is delivered through local authorities rather than directly through energy suppliers.

The council delivery model is the most important practical difference from ECO4. Under ECO4, large energy suppliers were obligated to fund qualifying installations and found eligible households themselves. Under the Warm Homes Plan, funding flows to local councils, who identify eligible households in their area, commission installers, and manage the programme locally. This means the route into the scheme is through your local council rather than through a supplier or a national application portal.

The scheme covers England only in its current form. Scotland, Wales, and Northern Ireland have separate programmes: Home Energy Scotland, Nest, and the Affordable Warmth Scheme respectively. These are distinct in eligibility criteria, funding levels, and delivery models.

The Two-Pot Structure for Heat Pump Funding

This is the structural detail that most summaries miss, and it determines how much funding is available for a heat pump installation.

The Warm Homes Plan separates its funding into two distinct pots per household:

Low carbon heat pot: Funds the heat pump unit, installation labour, and associated heating system work. This is the heat pump funding pot specifically.

Energy performance pot: Funds insulation, glazing, draught-proofing, and other fabric measures that improve the energy efficiency of the property.

The maximum available from each pot is set per household rather than per property, and the two pots cannot be combined or transferred between them. A household that uses the full energy performance pot on insulation cannot redirect remaining funding toward the heat pump installation cost, and vice versa.

The significance of this for heat pump installations is practical: most UK properties that qualify for Warm Homes Plan support on income grounds are older, less well-insulated homes that need significant fabric improvements before a heat pump will perform efficiently. A poorly insulated home with a heat pump produces higher running costs than a gas boiler in the same property, because a heat pump is a low-temperature system that works best when heat loss from the building fabric is low. The fabric work and the heat pump installation are not optional extras relative to each other -- they are a package, and understanding how the two pots fund each part of that package is how to work out whether the full project is covered.

Who Qualifies for Warm Homes Plan Heat Pump Funding

The Warm Homes Plan targets low-income and fuel-poor households. Eligibility is assessed at local authority level, and the specific income thresholds and qualifying criteria can vary between councils within the national framework.

The core eligibility routes are:

Income-based: Households where annual income falls below the relevant local threshold, typically set by reference to median local income or a national low-income benchmark. The scheme is explicitly designed for households who cannot self-fund a heat pump after any available grant.

Benefit-based: Households receiving means-tested benefits including Universal Credit, Pension Credit, income-related ESA, income-based JSA, Income Support, Housing Benefit, Child Tax Credit, or Working Tax Credit. Receiving a qualifying benefit does not automatically confirm eligibility -- the income assessment still applies in most cases.

Fuel poverty: Households identified as fuel-poor under the low income low energy efficiency definition, where the household has a below-average income and lives in a property with an energy efficiency rating below the median. Properties with an EPC rating of D or below are the primary targets.

Property type: Owner-occupied and private rented sector properties are both in scope. Social housing has separate funding routes. The property must be the main residence.

The council conducts the eligibility assessment for households in its area. The starting point is contacting the local council's energy efficiency or housing team, since councils run their own referral and assessment processes rather than directing households to a national application portal.

How the Warm Homes Plan Compares to ECO4 and the BUS

These three schemes are frequently confused because they all involve low carbon heating and government support, but they target different households and work through different mechanisms.

The key distinction for a low-income household considering a heat pump in 2026 is the relationship between ECO4 and the Warm Homes Plan. ECO4 closes 31 December 2026 and the Warm Homes Plan is the scheme that follows it. If you qualify for ECO4 and have not yet received a funded installation, applying before the December deadline is the more urgent action.

The Boiler Upgrade Scheme runs alongside both and is not means-tested. A low-income household that installs a heat pump through the Warm Homes Plan may also be able to claim the BUS grant for the heat pump element, since the two schemes fund different things and stacking them on the same installation is permitted where the grants do not duplicate the same measure. A registered installer or the local council's programme manager can confirm whether stacking applies in a specific case.

What the Warm Homes Plan Does Not Cover

Two things worth stating plainly before a household proceeds on assumptions.

First, the Warm Homes Plan does not guarantee full funding for a heat pump installation. The funding per household is capped within each pot, and heat pump installations for older UK properties often cost more than the available funding once all associated works are included. Any shortfall is the household's responsibility. The scheme reduces the cost significantly for eligible households but is not necessarily a zero-cost route for every property.

Second, not all heat pumps are the same, and the scheme funds installations that meet specific technical standards. Installers must be MCS-accredited and the heat pump must be correctly specified for the property's heat loss. An installation that is incorrectly sized, installed without the necessary fabric improvements, or carried out by an unaccredited installer will not be funded and may not perform correctly regardless of who pays for it.

What to Do Now: ECO4 Is Closing

The most urgent action for a household that may qualify for heat pump funding is to check ECO4 eligibility before 31 December 2026, because the route into low-income heat pump funding closes and reopens under a different delivery model when ECO4 ends.

ECO4 is currently the primary route for low-income households to access funded heat pump installations through the supplier obligation model. Applications that are not completed and installations not committed by the December deadline are not carried over. The Warm Homes Plan takes over from that point, but the council delivery model means the pipeline for installations under the new scheme builds more slowly than the existing supplier-led model.

Households in England who qualify on income or benefit grounds should contact both their local council's energy team and an ECO4-registered installer in parallel, since the two routes operate independently and whichever produces a confirmed installation before the deadline is the one that matters.

For a clear picture of every energy grant currently open, how they interact, and which ones apply to your household -- including the BUS eligibility checker and the ECO4 route InstantCost government grants guide covers all three active UK schemes with eligibility checkers updated to August 2026, so you can confirm in one place whether ECO4, the BUS, and the Warm Homes Plan each apply before the December deadline changes which routes are available.

Understanding what a heat pump installation actually costs before applying for any grant -- and therefore what gap the grant needs to cover -- is worth doing alongside the eligibility check. Our related guide on how much it costs to install a heat pump covers the 2026 UK installation cost breakdown, how the BUS £7,500 grant reduces the net cost, and why the fabric improvement work the Warm Homes Plan funds separately is often the larger part of the total project cost.

Common Mistakes and What to Do Instead

Mistake: confusing the Warm Homes Plan with the Warm Home Discount. These are completely different things. The Warm Home Discount is a £150 annual electricity bill credit. The Warm Homes Plan is a capital grant programme funding heat pumps and insulation for low-income households. The similar name causes genuine confusion.

Mistake: assuming the two pots can be combined for a larger total. The low carbon heat pot and the energy performance pot are separate. Unused funds from one cannot be redirected to the other. Plan the project with both pots as fixed limits rather than a combined total.

Mistake: waiting for a national application portal that does not exist. The Warm Homes Plan is council-delivered. The route in is through the local authority, not a gov.uk application form. Contact the council's housing or energy efficiency team directly.

Mistake: applying for the BUS before checking Warm Homes Plan eligibility. A low-income household that qualifies for Warm Homes Plan support may receive more comprehensive funded support through that route than through the BUS alone, since the Warm Homes Plan covers insulation and fabric works that the BUS does not. Check both before committing.

Mistake: leaving the ECO4 application until December. The installer pipeline under ECO4 fills as the deadline approaches. Surveys, quotes, and installation commitments take time, and applications submitted in November or December may not complete before the deadline. Contact an installer now.

Mistake: choosing an unaccredited installer. Heat pump installations under any funded scheme must be MCS-accredited. An unaccredited installation is not eligible for funding and will not qualify for the Smart Export Guarantee or any future grid-linked tariff either.

What It Covers

The Warm Homes Plan eligibility criteria, funding levels per household, and scheme rules are set by DESNZ and delivered locally. Details vary by council and are subject to revision. Verify current local criteria with your council before relying on any published guide. August 2026.

Staying Safe

Funded heat pump schemes attract a significant number of fraudulent installers and lead generators, particularly as deadlines approach and demand increases. The pattern is consistent across ECO4, BUS, and now the Warm Homes Plan: unsolicited approaches by phone, email, or in person offering free or heavily discounted heat pumps, asking for personal or payment details upfront, or claiming to be government-authorised.

No legitimate grant scheme requires an upfront payment at any stage. The money flows from government to council to registered installer to deduct from your quote. You pay nothing upfront for the funded element. Any installer or agent asking for payment before work is completed and certified is operating outside the scheme rules.

Verify MCS accreditation at mcscertified.com before signing any agreement with an installer. TrustMark registration at trustmark.org.uk provides an additional layer of verified competence for installation work funded by government schemes. Both checks are free and take under a minute.

Report fraudulent approaches to Action Fraud at actionfraud.police.uk or call 0300 123 2040.

Keep children and pets away from any survey or installation work. Heat pump installations involve external groundwork or wall penetrations for refrigerant pipework, electrical work to the consumer unit, and connection to the existing heating system. These are professional tasks requiring safe working clearance.

Heat pump installations under government-funded schemes must comply with the Microgeneration Certification Scheme (MCS) standards, the Building Regulations (specifically Part L for conservation of fuel and power and Part P for electrical safety), and the F-Gas Regulations governing refrigerants. Only MCS-accredited installers can issue the certificate required to claim the Boiler Upgrade Scheme grant or to demonstrate compliance under the Warm Homes Plan. Verify accreditation before signing any installation contract.

FAQ

What is the Warm Homes Plan for heat pumps? The Warm Homes Plan is the government's main low-income heat pump funding scheme in England, delivered through local councils. It funds heat pump installations from a dedicated low carbon heat pot, and separately funds insulation and fabric improvements from an energy performance pot. It replaces ECO4 as the primary funded route for low-income households from 2026 onwards.

Who qualifies for a heat pump under the Warm Homes Plan? Low-income and fuel-poor households in England, assessed at local council level. Qualifying routes include means-tested benefits, income below local thresholds, or a low energy efficiency rating combined with low income. Contact your local council's energy or housing team to start the eligibility assessment.

How does the Warm Homes Plan differ from the Boiler Upgrade Scheme? The BUS is open to all property owners in England and Wales regardless of income, and provides a fixed £7,500 grant (£9,000 off-gas-grid) toward a heat pump. The Warm Homes Plan is means-tested and targets low-income households, covering both the heat pump and the associated fabric improvements. Both grants can potentially be stacked on the same installation for different measures.

Can I still get ECO4 funding for a heat pump? Yes, until 31 December 2026. ECO4 closes on that date and the Warm Homes Plan becomes the primary route from January 2026 onwards. If you qualify for ECO4 on benefit or income grounds, applying before the December deadline is the more urgent action.

Is the Warm Homes Plan available in Scotland, Wales, and Northern Ireland? No. The Warm Homes Plan covers England only. Scotland has Home Energy Scotland, Wales has Nest, and Northern Ireland has the Affordable Warmth Scheme. Each has its own eligibility criteria, funding levels, and delivery routes.

Do I need an MCS-accredited installer for the Warm Homes Plan? Yes. All heat pump installations under funded schemes must be carried out by an MCS-accredited installer. Verify accreditation at mcscertified.com before signing any agreement.