Guide to Energy Schemes in the UK
There are several energy schemes in the UK designed to help households lower their energy bills. We run through the schemes and explain who is eligible and how to apply.
Table Of Contents
Overview of available energy schemes
Some energy schemes fund energy-efficient home improvements. These will cut your energy use and could lower your bills for years to come. The schemes are either open to everyone or to certain households, such as those on a low income.
Other schemes pay cash to eligible households to help them manage their energy costs. For instance, pensioners get a payment in the winter. What’s available to you may depend on where you live in the UK.
For homeowners and renters
Homeowners can apply for schemes that help improve their energy efficiency. This might be money towards insulation, a new boiler or heat pump. If you’re renting, you'll need permission from your landlord.
Other energy schemes are available regardless of whether you’re a homeowner or renter. You’ll just need to make sure you meet the criteria.
For businesses
There are no government schemes aimed at helping with business energy bills at the moment. However, there may be other business grants available, or energy improvements you can make. The regulator Ofgem has a helpful round-up. Citizens Advice has some tips on cutting small business energy bills.
You can also use the Boiler Upgrade Scheme for a property that you own and use for business. This gives property owners grants of up to £7,500 to install a heat pump or biomass boiler.
Key energy savings programmes
It can be tricky keeping up with which energy savings programmes are available. For example, the Green Homes Grant and Renewable Heat Incentive (RHI) have both closed.
Here are some of the key energy savings programmes on offer now:
Scheme |
What does it offer? |
Who’s eligible? |
|---|---|---|
Energy-efficient home improvements funded by energy suppliers. Includes boilers and insulation for cavity walls and lofts |
People in the UK on certain benefits, who live in private or social housing. There are different energy rating rules for owned and rented homes. |
|
£7,500 grant towards replacing a gas, oil or electric boiler with a heat pump, or £5,000 towards a biomass boiler |
Property owners in England and Wales |
|
Free or cheaper insulation |
Households that have an energy performance certificate (EPC) rating of D to G. They should also be in council tax bands A to D in England or A to E in Scotland or Wales |
|
Free insulation, heat pump, electric radiators and other improvements |
Homeowners in England who do not use a gas boiler as their main heating system and have an EPC rating of D to G |
|
Grants and loans of up to £7,500 (or £9,000 if you live in a rural or island area) for clean heating systems and energy efficiency improvements |
Homeowners and self-builders |
|
Grant of up to £10,000 to help fund energy-efficiency improvements, including central heating, radiators, heating controls and insulation |
People in Scotland who have lived in their home for at least 12 months and receive certain benefits, or are over 75 with no working heating system |
|
Grant of up to £10,000 for improvements, such as insulation and replacing heating systems |
People in Northern Ireland with an annual household income of less than £23,000. It is not available for tenants living in social housing. |
|
Free energy-efficiency advice and improvements, such as insulation, solar panels or heat pumps |
People in Wales who:
|
|
A one-off £150 discount off your electricity bill each winter |
Available in England, Wales and Scotland (where suppliers also set their own rules). Need to either get the Guarantee element of Pension Credit, or be on a low income with high energy costs |
|
Up to £300 to help with energy bills in winter. This rises for older claimants. |
Pensioners born before 25 September 1957 and living in the UK |
|
£25 for each seven-day period when the average temperature is 0ºC or below. More details in our guide. |
People receiving Pension Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Universal Credit or Support for Mortgage Interest |
Energy Company Obligation (ECO)
The Energy Company Obligation (ECO) is a government scheme designed to help cut carbon emissions and tackle fuel poverty. It’s available through most large energy suppliers in the UK.
The suppliers fund the installation of energy efficiency measures in homes. Energy suppliers offer different ECO measures. They typically include insulation and boiler replacement or repair. You must own your home or have permission from your landlord to apply. This includes social landlords.
You must also receive at least one of these benefits:
- Child Benefit
- Pension Credit
- Income-related Employment and Support Allowance
- Income-based Jobseeker's Allowance
- Income Support
- Tax Credit (Child Tax Credit and Working Tax Credit)
- Universal Credit
- Housing Benefit
Your local council can also refer you to their scheme. You can ask any energy supplier if it can help you under the ECO scheme. It doesn’t matter if they are not your own supplier. To apply, contact the energy provider.
Boiler Upgrade Scheme
Households in England and Wales can apply for the Boiler Upgrade Scheme. This is a grant for replacing a gas, oil or electric boiler with a heat pump or biomass boiler. For a heat pump, you can get £7,500 towards the cost. You can get £5,000 for a biomass boiler.
You must own the property you’re applying for. It could be your home, a second home, a property you rent out to tenants, or a business.
You don't need to apply to the scheme yourself. Instead, your installer will apply on your behalf. Make sure you choose a registered Boiler Upgrade Scheme installer so they can access the grant.
Great British Insulation Scheme
The Great British Insulation Scheme may be able to help you get free or cheaper insulation for your home.
You can be a homeowner, landlord or tenant. If you're a tenant, you'll need to ask your landlord for permission.
To be eligible your home will need to:
- Have an EPC rating of D to G
- Be in Council Tax bands A to D in England, or A to E in Scotland or Wales
Energy suppliers sometimes deliver the scheme to other customers on low incomes or in vulnerable situations. You might also qualify if you meet its criteria for those.
You can check if you qualify online. You’ll need the following information:
- Type of benefits anyone living in the property receives (you may be eligible for additional support)
- Total household income
- Your email address or phone number
If you are eligible, your energy supplier will contact you. They will assess your home. They will tell you if you need to pay towards the insulation. You don’t have to go ahead with the work. You can decide after the assessment.
Note that you will only be able to get one type of insulation funded through the initiative. The government estimates that homes should save between £300 and £400 a year.
Energy-saving tips and practices
Many people can reduce their energy bills by making small changes around the home. Or you can switch energy supplier or install a smart meter.
Energy efficiency in the home
There are lots of ways to try and use less energy, and therefore cut your bills. These include:
- Use energy-efficient lightbulbs
- Draught-proof windows and doors
- Switch appliances off standby
- Use a 30ºC washing machine cycle instead of higher temperatures
- Avoid the tumble dryer
- Swap your bath for a shower
- Have shorter showers
The Energy Saving Trust says keeping your shower time to just four minutes could save a typical household 30 litres a day.
Smart meters and energy monitoring
Smart meters measure how much gas and electricity you’re using and send the readings to your energy supplier. The meters come with a display screen so you can monitor your energy use.
By checking how much energy you use, it should be easier to reduce it and save money. For example, you’ll be able to see how much energy it takes to fill the bathtub. Or to put on the heating.
It’s free to get a smart meter. Just ask your energy supplier. Getting a smart meter could get you a discount off your energy bill, depending on the supplier. Or you might qualify for a reward scheme.
Preparing for the future: renewable energy and sustainability
The government’s grants are part of a drive to prepare for the future and make homes more sustainable. Moving from fossil fuels to renewable energy is also important for cutting carbon emissions.
Investing in renewable energy
Most energy suppliers offer a “green” or “renewable energy” tariff. To go a step further, you could generate your own power at home. Installing solar panels converts the sun’s energy into electricity.
A solar panel system costs around £7,000. Once you’ve paid for this, you’ll see a drop in your energy bills. This is because you’ll get some of your electricity from sunlight rather than buying it from the National Grid.
Under the feed-in tariff scheme (FITs), households were paid for spare electricity that they generated. This closed in 2019. The less generous Smart Export Guarantee replaced it. The government has more information about how it works and who’s eligible. But some suppliers, such as Octopus, will buy your excess power from you.
Benefits of sustainable energy practices
Making your home more sustainable has various benefits. More insulation means you shouldn’t need to turn the heating on as much during the winter. Reducing your energy use is good for the planet and good for your wallet.
Increasing the amount of energy we get from sustainable sources, such as wind, solar and tidal, is vital. This will cut carbon emissions. It will also mean our country isn’t so reliant on other countries for energy.
Common questions about energy schemes
What do I do if I’m not eligible?
If you don’t think you’re eligible for an energy scheme, double check. Your energy supplier or local council might have slightly different criteria to the official list. This is because they usually have money set aside to help certain households with energy bill support.
If you’re still not eligible, try and keep up to date with any new energy schemes. This could be from the government, councils, charities or energy suppliers.
How do I stay informed about new schemes?
To stay informed about new energy schemes, have a look at the Department for Energy Security & Net Zero’s website. This is the government department that usually announces new schemes. You can follow it on X (Twitter) and LinkedIn.
Keep an eye on Ofgem and the Energy Saving Trust too. They may highlight any new schemes.
Summary: making the most of UK energy schemes
Applying for UK energy schemes can reduce the financial burden of your energy bills. Here are two tips to make the most of these schemes.
Check the small print before applying. Does the scheme make the home improvement completely free, or do you still need to pay towards the installation? If you have to pay, you may need to budget for this.
And if you do want to apply for a scheme, don’t delay! Energy schemes are often closed, and sometimes replaced with less generous versions.