Energy grants

There are a few energy grants out there to support you if you can’t afford your energy bill. There are also grants available if you want to improve your home’s energy efficiency - for example if you want to upgrade your boiler or improve your insulation.

Energy meter with coins

Remember that it’s always worth speaking to your supplier if you’re struggling to pay your bill. They may have more options than we’ve listed here. 

Government grants for energy and energy improvements at a glance: 

What grants or loans are available for new boilers and insulation? 

 

Energy Company Obligation (ECO)

The ECO is a government scheme that aims to make homes more energy efficient and help reduce carbon emissions.

The government works with energy suppliers on this. The energy suppliers then have the responsibility to offer energy efficiency improvements to homes in the UK.

The medium and large energy suppliers [link to article on the big six] (like British Gas) are obligated to fund these energy efficiency improvements. They also have targets to meet, so there’s more pressure on them to roll out these energy efficiency measures in UK homes. 

Some of the energy efficiency improvements ECO could make are:

  • Installing a new boiler - if you qualify you could potentially get a free boiler
  • Installing better insulation - for example insulation in your walls or loft.

You could be eligible for the scheme if you’re getting:

  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer's Allowance
  • Child Benefit
  • Constant Attendance Allowance
  • Disability Living Allowance
  • Pension Guarantee Credit
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker's Allowance (JSA)
  • Income Support
  • Industrial Injuries Disablement Benefit
  • Mobility Supplement
  • Personal Independence Payment
  • Severe Disablement Allowance
  • Tax Credits (Child Tax Credits and Working Tax Credits)
  • Universal Credit
You should also be eligible if you're living in social housing with a certain EPC rating. You can find the full list on the Ofgem website.  If you’re not on this list you might still be able to benefit from the ECO. Visit the Simple Energy Advice website to see what you could qualify for.
 

The Green Deal

This is more of a loan than a grant, but it could save you money on your energy bills in the long run.  The aim of the scheme is to provide a loan to people who want to make their home more energy efficient. For example, by installing:
  • Insulation 
  • Heating - for example, a new boiler or heating system 
  • Draught-proofing
  • Double glazing
  • Renewable energy generation, for example solar panels or heat pumps

If you think your home might benefit from energy-saving improvements, The Green Deal might work for you. 

You can visit GOV.UK for more information on The Green Deal.

 

Nest (Wales)


This is a similar scheme to The Green Deal. Homes in Wales can apply for a loan to improve their home’s energy efficiency - and in turn, reduce energy bills. 

If you’re eligible for the scheme you can get help with costs for a new boiler, central heating or insulation. Find out if you're eligible on the Nest website

If you’re struggling to keep your home warm or cope with your energy bills, you can freephone Nest on 0808 808 2244.

 

Home Energy Efficiency Programmes for Scotland (HEEPS) (Scotland)


HEEPS aims to improve energy efficiency in fuel-poor areas of Scotland. 

The scheme’s run since 2013, and delivered energy efficiency improvements to 100,000 households according to the Scottish Government.

HEEPS is also run by ECO and local authorities. If you’re eligible for HEEPS, your local authority should contact you.

You can find out more on HEEPS at GOV.SCOT

 

What loans and grants do the government provide for energy?

 

£200 government energy loan

The government is providing a loan of £200 to everyone in the UK from 1 October 2022. The loan should help people afford the rising costs of energy. 

The loan was brought in after the announcement that the default energy price cap would rise from £1,277 to £1,971 in April. This is likely to increase household energy costs by £693 per year.

Your energy supplier should automatically apply the loan to your energy account on 1 October.

You can’t refuse the loan, and you have to pay it back in £40 instalments over the next 5 years. 

To further help with the cost of living, chancellor of the exchequer, Rishi Sunak announced a £150 council tax rebate for people in council tax bands A to D. The government says that you won’t have to pay this back. This should be paid in April.

You can read the full announcement at GOV.UK

 

The Winter Fuel Payment 

To be eligible for this, you need to have been born on or before 26 September 1955. 

You could get between £100 and £300 to help with your heating bills. 

You should automatically get the winter fuel payment - you don’t have to apply. 

Usually the winter fuel payment is paid into your account in either November or December. Check GOV.UK for more information on the Winter Fuel Payment

 

Winter Fuel Support Scheme (Wales)

In Wales, eligible households could get a payment of £200 from their local council. 

The grant eligibility applies to all types of fuel payment. So if you’re using a pre-payment meter, direct debits or paying a quarterly bill you still could get support.

On 1 February 2022, the minister for social justice doubled the Winter Fuel Support Scheme payment from £100 to £200.

This should be available to new applicants and should be retrospectively paid to those who applied already. 

If you’re eligible for the Winter Fuel Support Scheme, your local council should write to you. 

The deadline to claim has passed, but payments are being made until 30 April 2022. 
You can find out more on GOV.WALES

It might also be worth keeping an eye on this for next winter too.

 

Cold Weather Payment

You could be eligible for the Cold Weather Payment If you’re getting certain benefits.

You should get this payment if the average temperature in your area is 0°C or below for 7 days.

You should get £25 for each 7-day spell of cold weather between 1 November and 31 March. 

You can find out more on GOV.UK, or check if you can get a payment in your area

 

Warm Home Discount

The Warm Home discount is a little different to the other grants we’ve looked at.

Instead of a one-off payment, you get a discount on your gas and electricity bill. 

Usually you get this payment between October and March. 

The government website says that this discount won’t affect your Cold Weather or Winter Fuel Payment. You should get this as an additional payment.

You might qualify for the Warm Home Discount if:

  • You get the Guarantee Credit element of Pension Credit - known as the ‘core group’
  • You’re on a low income, and you match your energy supplier’s criteria for the scheme. This is known as the ‘broader group’ 


You can find out more about this scheme at GOV.UK

 

Child Winter Heating Assistance (Scotland)

This grant was first paid out in 2020. It’s designed to help disabled children, young people and their families with the high costs of heating over winter. 

The grant is paid once a year. For winter 2021 - 2022 the payment was £202, but this could  change each year.

Usually this grant is available from the end of November onwards. Find out more at My Government Scotland

 

Does my energy supplier provide energy grants or support?

If you’re in debt with your energy supplier, they might offer you a grant that you can use to pay it off. 

Some of the energy suppliers that provide grants are: 

If your supplier doesn’t offer any sort of grants, you might be able to get one from the British Gas Energy Trust. Anyone can get this grant - you don’t have to be a British Gas customer.