Warm Homes: Local Grant

What is Warm Homes: Local Grant?

The Warm Homes: Local Grant (WHLG) is a UK Government-funded scheme designed to improve energy efficiency and install low-carbon heating solutions in low-income households across England. Scheduled to begin delivery in April 2025, the initiative aims to tackle fuel poverty, reduce carbon emissions, and support the UK’s net-zero targets.

With £500 million allocated over three years, the WHLG will be delivered by local authorities, replacing previous schemes such as the Local Authority Delivery (LAD) and Home Upgrade Grant (HUG).

Objectives of the Warm Homes: Local Grant

The WHLG has two primary goals:

1. Fuel Poverty Reduction: Upgrading homes to achieve EPC Band C by 2030, reducing energy bills for vulnerable households.

2. Carbon Emissions Reduction: Installing energy-efficient measures and low-carbon heating systems to contribute to the UK’s Net Zero 2050 targets.

Additionally, the scheme aims to ensure homes are thermally comfortable, healthy living environments while supporting the green economy through job creation in sustainable sectors.

The Warm Homes: Local Grant is meticulously designed to target households most in need of energy efficiency improvements:

1. Energy Performance Certificate (EPC) Ratings:

   • Eligible properties must have an EPC rating between D and G.(Find an energy certificate)

   • Homes rated A, B, or C are excluded as they are already considered energy efficient.

2. Income Thresholds:

   • Households with a gross annual income below £36,000 qualify.

   • Alternatively, recipients of specific means-tested benefits are eligible, including:

     • Universal Credit

     • Housing Benefit

     • Income Support

     • Pension Credit

     • Child Tax Credit (subject to income thresholds)

     • Working Tax Credit (subject to income thresholds)

3. Property Ownership:

   • The scheme is open to privately owned homes (owner-occupied).

   • Privately rented properties are also eligible, with specific conditions for landlords.

   • Social housing is generally excluded, except for limited in-fill projects.

4. Savings Limit:

   • Households with savings exceeding £50,000 are not eligible.

   • This ensures that the funding is directed to those with the greatest financial need.

5. Flexible Eligibility Pathways:

   • Council tax rebates (excluding single-person discounts) may qualify a household.

   • Residents with long-term health conditions exacerbated by cold homes may be eligible.

   • Properties in postcodes within Income Deciles 1-2 of the Indices of Multiple Deprivation (IMD) may qualify.

The grant offers a wide range of energy-efficient improvements:

• Insulation (loft, cavity wall, solid wall)

• Solar panel installation

• Heat pump systems (air source heat pump and ground source)

• Draught-proofing measures

• Double glazing upgrades

• Smart heating controls

Funding of up to £30,000 per household ensures substantial improvements can be made, with measures tailored to each property’s specific needs.

The Warm Homes: Local Grant extends far beyond immediate energy savings, offering multifaceted benefits:

1. Environmental Impact:

   • Significant reduction in residential carbon emissions.

   • Contribution to national climate change mitigation efforts.

2. Health Improvements:

   • Warmer, more comfortable homes lead to better physical and mental health outcomes.

   • Reduction in cold-related illnesses and associated healthcare costs.

3. Economic Stimulus:

   • Creation of green jobs in the energy efficiency and renewable energy sectors.

   • Skills development and training opportunities in sustainable technologies.

4. Fuel Poverty Alleviation:

   • Substantial reduction in energy bills for vulnerable households.

   • Increased disposable income for low-income families.

5. Property Value Enhancement:

   • Improved EPC ratings can potentially increase property values.

   • Enhanced marketability for upgraded properties.