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Energy grants

Alice Campion, Senior Editorial Content Executive at Confused.com

Written By Alice Campion Senior Writer Updated on 25/08/2022

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.

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.

Latest energy loans available

Households in England, Wales and Scotland will receive a one-off £400 grant from October for their energy bills. This won’t need to be paid back. The previous £200 government loan has been scrapped.

The £400 payment should be credited to your energy account if you pay by credit or direct debit.

If you have a prepayment meter, you should receive a voucher either by text, email or post. You should redeem these at your usual top-up point, this is usually your local PayPoint or Post Office.

The majority of energy customers should receive the grant in 6 instalments.

If you’re renting and the energy account is in your name, the payment process should be the same. If your landlord handles your energy bills, it’s worth speaking to them about what happens when they receive the rebate.

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 (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:

claim certain benefits and live in private housing, for example, your own your home or rent from a private landlord
live in social housing

You can find the full list on the Ofgem website. Contact your local council or your energy supplier directly for more information on ECO.

If you’re not eligible 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)

HEEPS is a Scottish government initiative aimed at increasing energy efficiency in homes and tackling fuel poverty.

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.

Home Energy Scotland Loan

If you're in Scotland you could get either a loan or cashback scheme from the Scottish government for installing energy efficiency and renewables measures.

How much you could get depends on the measures you're installing. But you could receive support for:

Solid wall insulation, insulated doors, most kind of wall insulation.
Wind or hydro turbines, heat pumps, solar panels.

You can find the full list of what you can get a loan for and details of more energy loans at GOV.SCOT.

What loans and grants do the government provide for energy?

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 £250 and £600 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 automatically 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. This is in addition to the winter fuel payment offered by the UK government.

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.

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’.

The scheme is closed now but should reopen again in November 2022. For the latest updates visit GOV.UK.

Child Winter Heating Assistance (Scotland)

This grant was first paid out in 2020. It’s designed to help children with a disability, 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.