Warm Homes: Local Grant

Infrastructure and Construction

Record date: 31 March 2026

Whole-life cost: £454.5m
Published schedule: 05/09/2024 – 01/09/2028
NISTA delivery confidence: AMBER
Senior responsible owner: Selvin Brown

What the project is for

The Warm Homes: Local Grant (WH:LG) scheme is a government-funded, fuel poverty scheme delivered by Local Authorities. It was launched on 23 September 2024, and was allocated £500m through the Chancellor’s Budget on 30 October 2024 to be delivered from April 2025 to March 2028, with a portion of this funding delivered through devolution deals with mayoral combined authorities. This £500m funding is part of a wider package towards heat decarbonisation and household energy efficiency over the next three years, including funding to support fuel poverty schemes including WH:LG, helping in total around 225,000 households to reduce their energy bills by over £200. The £500m allocated to WH:LG provides grants to private, low-income households living in the worst performing (EPC bands D-G) homes in England to tackle fuel poverty and progress net zero 2050. The primary and secondary aims of WH:LG are: 1. To deliver progress towards the statutory fuel poverty target for England, by improving as many fuel-poor homes as reasonably practicable to energy efficiency rating of Band C by 2030, 2. To deliver progress towards Net Zero 2050, and the Carbon Budgets, by installing energy performance upgrades and low carbon heating in homes that drive carbon abatement.

Departmental delivery commentary

The Warm Homes: Local Grant (WH:LG) scheme delivered its 2025/26 budget and exceeded the budget and delivery through other financial mechanisms, by approximately 30%. Early data suggests Grant Recipients are on track to comply with key scheme value for money protections, such as cost caps and measure price limits. To note, while this is a positive early indicator that progress against the total scheme objectives is on track (reducing fuel poverty and saving carbon), benefits data on these objectives is not yet available. There are risks regarding scheme resourcing which are being actively managed, and as a result the delivery confidence has been set as Amber for Quarter 4 of Financial Year 2025/26.

Schedule

In accordance to the Full Business Case, the Warm Homes: Local Grant scheme was launched on 23 September 2024, and was allocated £500m through the Chancellor’s Budget on 30 October 2024 to be delivered from April 2025 to March 2028. The schedule of delivery has not changed since the launch of the scheme and it remains on track to deliver.

Cost

In accordance with the Full Business Case, the Warm Homes: Local Grant scheme Whole Life Cost consists of CDEL (capital) grant funding disbursed to Grant Recipients for the delivery of energy efficiency measures, CDEL (capital) enabling costs associated with the delivery of those energy efficiency assets (including digital and delivery partner support), RDEL programme costs associated with front line project delivery, including evaluation and RDEL admin costs associated with staffing.

Benefits

The baseline benefits have been quantified in accordance with the Full Business Case for the Warm Homes: Local Grant scheme. Baseline benefits consist of monetised energy savings (using long-run variable costs of energy supply values), carbon savings (traded and non-traded), air quality benefits, comfort benefits and health benefits.