Green Homes Grant Successor Schemes: What Is Available in 2024?

The Green Homes Grant voucher scheme ended in March 2021 after a troubled rollout, but several successor programmes now provide similar or greater support for home energy improvements in Lancashire. The main schemes available in 2024 included ECO4 (free insulation and heating for benefit recipients), the Great British Insulation Scheme (insulation for Council Tax band A-D homes, closed on 31 March 2026), the Boiler Upgrade Scheme (up to £7,500 towards heat pumps), the Home Upgrade Grant (for off-grid homes), and 0% VAT on energy-saving installations. Together, these schemes provide more comprehensive funding than the Green Homes Grant ever did – but they are harder to navigate because they are separate programmes with different eligibility rules.

What Replaced the Green Homes Grant?

The Green Homes Grant ended in March 2021, but several successor schemes now offer equal or greater funding for home energy improvements. The main replacements are the Warm Homes: Local Grant (up to £16,600 for low-income households), the Boiler Upgrade Scheme (£7,500 towards heat pumps) and ECO4 (fully funded insulation and heating for eligible homes, until 31 December 2026); the Great British Insulation Scheme, which served middle-income households, closed on 31 March 2026.

• Warm Homes: Local Grant — up to £16,600 for insulation, heating and ventilation upgrades
• Boiler Upgrade Scheme (BUS) — £7,500 off the cost of an air source or ground source heat pump
• ECO4 — fully funded measures for households on qualifying benefits or via LA Flex referral
• Great British Insulation Scheme (GBIS) — closed on 31 March 2026; it offered free or subsidised insulation for homes in council tax bands A to D
• 0% VAT on energy-saving materials — covers solar panels, heat pumps, insulation and batteries until 31 March 2027, then 5%

Unlike the Green Homes Grant, which required homeowners to contribute towards costs, several of these schemes cover the full installation price for qualifying households. Eligibility depends on your income, benefits status, property EPC rating and location.

If you missed out on the Green Homes Grant or have been waiting for something similar, the current landscape actually offers better support for most Lancashire homeowners. Here is a clear guide to what is available, who qualifies and how to access each scheme.

ECO4: The Main Insulation and Heating Scheme

The Energy Company Obligation (ECO4) is the largest home energy scheme in England, providing fully funded insulation, heating upgrades and energy efficiency measures. It is funded by the major energy suppliers and delivered through qualified installers.

• What it covers: Loft insulation, cavity wall insulation, solid wall insulation, underfloor insulation, room-in-roof insulation, boiler replacement, heating controls, draught-proofing
• Who qualifies: Households receiving qualifying benefits (Universal Credit, Pension Credit, JSA, ESA, Income Support, Housing Benefit) with a property rated EPC D or below. ECO4 Flex allows councils to refer non-benefits households in fuel poverty.
• Cost to you: Free for eligible households
• Runs until: 31 December 2026

ECO4 has insulated thousands of Lancashire homes and remains the primary route for funded home improvements. Our detailed guide to ECO4 eligibility in Lancashire covers the application process.

Great British Insulation Scheme (GBIS): Closed on 31 March 2026

The Great British Insulation Scheme closed on 31 March 2026. It targeted homes in Council Tax bands A-D with specific insulation measures and had broader eligibility than ECO4 because it was not solely based on benefits receipt.

• What it covered: Cavity wall insulation, loft insulation, solid wall insulation, underfloor insulation, flat roof insulation, room-in-roof insulation
• Who qualified: Homes in Council Tax bands A-D in England. No benefits requirement for the property-based route. A separate benefits-based route existed for households on qualifying benefits in any Council Tax band.
• Cost to you: No longer available (it was free or heavily subsidised for eligible households)
• Closed: 31 March 2026

The scheme was particularly relevant for Lancashire homeowners who do not receive benefits but live in lower Council Tax band properties (which is common across East Lancashire). If your home needs insulation now, ask your council about the Warm Homes: Local Grant, for homes rated EPC D to G where the household has a gross income under £36,000, gets a means-tested benefit or lives in an eligible postcode.

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme provides a government grant (currently £7,500, or £9,000 until 31 March 2027 for homes heated by oil or LPG with no mains gas, subject to eligibility) towards the cost of replacing a fossil fuel heating system with a heat pump.

• What it covers: Air source heat pumps, ground source heat pumps
• Who qualifies: Any homeowner in England or Wales replacing a fossil fuel heating system. No income or benefits test.
• Grant amount: £7,500 per property (£9,000 until 31 March 2027 if the home is heated by oil or LPG and has no mains gas connection)
• Runs until: 31 March 2030

The Boiler Upgrade Scheme has been increasingly popular across Lancashire as heat pump technology matures and more local installers become MCS certified. Our step-by-step guide to the Boiler Upgrade Scheme covers the full process.

Home Upgrade Grant (HUG): Closed in March 2025

HUG targeted off-gas-grid homes with poor energy efficiency, which made it particularly relevant for rural Lancashire properties that rely on oil, LPG or electric heating. It closed in March 2025, and in England the Warm Homes: Local Grant has taken its place.

• What it covered: Insulation, heat pumps, solar panels and other energy efficiency measures for off-gas-grid homes
• Who qualified: Households with an income below £36,000 (or receiving qualifying benefits) living in off-gas-grid properties with an EPC of D or below
• Maximum grant: Up to £10,000 per property
• Ran until: March 2025, replaced by the Warm Homes: Local Grant

Lancashire councils administered HUG locally, and off-grid homes in the Ribble Valley, Forest of Bowland, Over Wyre and rural Fylde were prime candidates. For funding now, ask your council about the Warm Homes: Local Grant. In most of Lancashire (not Fylde) it runs through Cosy Homes in Lancashire, whose 2026/27 funding is fully committed; applications reopen in March 2027.

0% VAT on Energy-Saving Materials

All residential installations of solar panels, batteries, heat pumps and insulation benefit from 0% VAT until 31 March 2027; after that the rate is 5%. This is not a grant but a significant cost reduction that applies to everyone regardless of income or benefits status.

• What qualifies: Solar panels, batteries, heat pumps, insulation materials, heating controls
• Who benefits: All residential property owners
• Saving: the 5% VAT that would otherwise apply
• Runs until: 31 March 2027 (then 5%)

Our guide to 0% VAT on solar panels explains the detail.

How to Navigate the Landscape

With multiple schemes available, finding the right one for your circumstances can be confusing. Here is a simplified decision tree for Lancashire homeowners:

On qualifying benefits + EPC D or below? Start with ECO4. You could get free insulation, heating upgrades and more. Contact an ECO4 installer or your local council.

Not on benefits, but household income under £36,000 or an eligible postcode? If your home is rated EPC D to G, ask your council about the Warm Homes: Local Grant for funded insulation. (The Great British Insulation Scheme, which went by Council Tax band, closed on 31 March 2026.)

Want a heat pump (any income)? Apply for the £7,500 Boiler Upgrade Scheme grant (£9,000 until 31 March 2027 if your home is heated by oil or LPG and has no mains gas connection) through an MCS certified installer.

Off the gas grid + income below £36,000? Check Warm Homes: Local Grant eligibility through your local council. Could fund insulation plus a heat pump.

Want solar panels (any income)? Benefit from 0% VAT. Get quotes from qualified installers. No grant application needed for the VAT saving.

Not sure where to start? Contact your local council’s housing or energy team. They can assess your situation and signpost you to the right scheme. Our guide to local authority grants for energy upgrades covers what each council offers.

Can I combine multiple schemes?

Yes, in many cases. You can receive ECO4 funding for insulation and a government grant for a heat pump on the same property. You cannot use two grants for the same specific measure, such as the same cavity wall insulation. The 0% VAT applies on top of any grants. Your installer can advise on the most beneficial combination for your situation.

Are these schemes likely to continue?

ECO4 runs until 31 December 2026, the Great British Insulation Scheme closed in March 2026, and the Boiler Upgrade Scheme has funding to 2029/30. No successor supplier obligation to ECO4 has been announced. If you are eligible now, applying sooner rather than later secures the funding while it is available. Waiting risks missing out if schemes close or eligibility changes.

Why was the original Green Homes Grant scrapped?

The Green Homes Grant voucher scheme was scrapped after just six months due to administrative problems, installer shortages and low voucher redemption rates. The successor schemes (ECO4, the Great British Insulation Scheme, the Boiler Upgrade Scheme and HUG) were designed to address these issues by using established delivery mechanisms, longer timescales and clearer eligibility criteria. The Great British Insulation Scheme closed on 31 March 2026, and HUG ended in March 2025, replaced by the Warm Homes: Local Grant. The current landscape, while more complex, is functioning much better than the original GHG scheme did.