ECO4 vs Warm Homes Local Grant: Which Should You Apply For?

ECO4 and the Warm Homes Local Grant are the two main UK government-backed schemes providing free insulation and heating upgrades in 2026. ECO4 is funded by energy suppliers and covers England, Scotland, and Wales — but ends December 2026 with no successor. The Warm Homes Local Grant is funded directly by the government, delivered through councils in England, and runs until 2028. You can apply for both.

Both schemes can fund cavity wall insulation, loft insulation, solid wall insulation, and heating upgrades at no cost to eligible homeowners. But they have different eligibility rules, different coverage, and different timelines.

The right scheme for you depends on where you live, your income, your property type, and what improvements you need. This guide compares everything — but the fastest way to find out is to check what you personally qualify for:

ECO4 vs Warm Homes Local Grant: Side-by-Side

Sources: Warm Homes: Local Grant budget allocation (gov.uk), ECO4 scheme details (Ofgem)

The table shows what each scheme can cover — but what you actually qualify for depends on your specific property, income, and location. Each council applies these rules slightly differently.

Who Qualifies: Eligibility Compared

This is where the two schemes differ most — and where most people get confused. Your eligibility for each scheme depends on different criteria.

ECO4 Eligibility

ECO4 uses a benefits-based system. You qualify automatically if you receive:

• Universal Credit
• Pension Credit (Guarantee or Savings)
• Income Support
• Jobseeker's Allowance (income-based)
• Employment and Support Allowance (income-related)
• Housing Benefit
• Child Tax Credit (income below £18,500)
• Working Tax Credit

Under LA Flex, councils can also refer households that don't receive benefits but have a low income. Each council sets its own threshold — typically £31,000–£38,000 depending on household size and local cost of living.

The problem: every council's LA Flex criteria is different, published in separate PDF documents, and often hard to find. This is one of the reasons eligibility is so confusing.

Warm Homes Local Grant Eligibility

The Warm Homes Local Grant has three eligibility pathways, meaning more households can qualify:

• Pathway 1 — Eligible postcode: Your home is in an IMD Income Decile 1–2 area
• Pathway 2 — Benefits: Someone in your household receives qualifying benefits
• Pathway 3 — Income: Household income is £36,000 or less

This is a broader net. A household earning £35,000 with no benefits would qualify for the Warm Homes Local Grant via Pathway 3 — but would likely not qualify for ECO4 unless their council's LA Flex threshold covers them.

Both schemes require your property to have an EPC rating of D, E, F, or G. You can check your EPC for free on gov.uk.

Source: Apply for the Warm Homes: Local Grant (gov.uk)

What Each Scheme Covers

Insulation

Both schemes fund the same core insulation measures: cavity wall insulation, loft insulation, and solid wall insulation. The Warm Homes Local Grant additionally covers underfloor insulation.

Which insulation you receive depends on your property survey — a qualified assessor determines what would have the most impact. Typically it's cavity walls first (saves ~£295/year according to the Energy Saving Trust), then loft (saves ~£355/year), then solid walls if applicable.

Heating Upgrades

This is where the schemes differ significantly:

• ECO4 can fund boiler replacements (if yours is old or broken), full heating system installations (if you have none), and storage heater replacements. Heat pump funding through ECO4 is limited.
• Warm Homes Local Grant can fund air source heat pumps and smart heating controls in addition to standard heating measures. It's the more comprehensive scheme for heating.

Solar Panels

ECO4 can only fund solar panels for homes with electric heating (no gas supply). Since most UK homes have gas, ECO4 solar eligibility is limited.

The Warm Homes Local Grant can fund solar panels for any eligible household — regardless of heating type. If you want free solar panels and have gas heating, the Warm Homes Local Grant is your route.

Not sure which improvements your home needs? A property survey will determine this — but our eligibility checker gives you a quick indication of what you might qualify for based on your property type and EPC rating.

Which Should You Apply For First?

The honest answer: it depends on your situation. Here's a quick guide:

The best approach for most homeowners: apply for both simultaneously. There's no penalty, and you may qualify for one but not the other. A surveyor will then coordinate which scheme funds which improvements to maximise what you receive.

Can You Get Both?

Yes — you can receive funding from both ECO4 and the Warm Homes Local Grant, just not for the same specific measure. For example:

Your installer or council surveyor coordinates this automatically — you don't need to manage the overlap yourself.

Timeline: Key Deadlines

The urgency is ECO4. Once energy suppliers meet their obligations, they stop funding installations — even before the December deadline. Some suppliers have already hit their targets in certain areas. If you might be eligible, check now rather than waiting.

Source: ECO4 extension consultation response (gov.uk)

What About Scotland and Wales?

The Warm Homes Local Grant is England only. If you're in Scotland or Wales, here's what's available alongside ECO4:

Scotland

• Home Energy Scotland — grants up to £7,500 + interest-free loans up to £7,500. No income test for the grant.
• Warmer Homes Scotland — fully funded improvements for low-income households.

Wales

• Nest Wales — free boiler, insulation, heat pumps, and solar panels. Funded by the Welsh Government, no announced end date.
• Boiler Upgrade Scheme — £7,500 towards a heat pump (England and Wales).

Our eligibility checker covers all UK schemes — including Scotland and Wales — so you'll see everything available in your area.

The Bottom Line

Don't try to choose between ECO4 and the Warm Homes Local Grant in the abstract — your specific situation determines which schemes you qualify for. Factors like your exact postcode, EPC rating, household size, and whether you receive certain benefits all affect eligibility.

The fastest way to cut through the confusion: check what you personally qualify for. It takes 2 minutes, costs nothing, and shows you every grant available for your property — not just these two.