Navigating the UK retrofit funding landscape can be complex. Schemes change, eligibility criteria evolve and the relationship between different funding streams is not always straightforward. This guide provides a practical overview of the main active funding schemes as of 2026, who can access them and what they require.
The Warm Homes Plan, announced in January 2026, is the government's overarching strategy for home energy efficiency. With £15 billion committed, it is the largest public investment in housing upgrades in British history. The plan consolidates and rebrands several previous schemes under a single framework, while introducing new funding for low-income households and private tenure properties.
All funded works under the Warm Homes Plan require compliance with PAS2035 — meaning a qualified Retrofit Coordinator must be involved in every project, and all works must be lodged with TrustMark on completion.
Housing associations and local authority registered housing providers. Properties must be social housing — privately rented or owner-occupied properties are not eligible under this stream.
Capital works to improve the energy efficiency of social housing, targeting the worst-performing properties first. Eligible measures include insulation (wall, roof, floor), heat pumps, solar PV, battery storage, smart heating controls and related enabling works.
Applications are made to DESNZ through a competitive bidding process. Applicants must demonstrate stock condition data, a clear delivery plan and the supply chain capacity to deliver. Properties are typically targeted at EPC Band D and below, with the worst performers (E, F, G) prioritised.
Local authorities delivering to owner-occupied and privately rented properties occupied by households on low incomes. Housing associations can participate as delivery partners to local authorities.
Energy efficiency and clean heat measures for eligible private tenure properties. Properties must generally be below EPC Band D and be occupied by households meeting income eligibility criteria.
Local authorities receive an allocation and are responsible for identifying eligible households, procuring delivery partners and managing compliance. The local authority is the accountable body — delivery partners (including housing associations with retrofit expertise) operate under subcontract or partnership arrangements.
Homeowners and landlords in England and Wales replacing fossil fuel heating with low-carbon alternatives.
The property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. For heat pump installations, a PAS2035 retrofit assessment is required to confirm suitability. Installers must be MCS-certified and PAS2030 accredited for the relevant measure.
Important: ECO4 — the Energy Company Obligation scheme — ended in March 2026 and is no longer accepting new applications. Properties previously identified under ECO4 pathways may be eligible under Warm Homes Plan schemes. Contact your local authority or a qualified RC for guidance on alternative routes.
Not all retrofit needs to be grant-funded. Housing associations with improvement programmes funded through their own capital investment, HRA borrowing or social investment may choose to carry out retrofit works independently of government schemes. PAS2035 compliance is still best practice in these cases — it provides quality assurance and a documented audit trail regardless of the funding source.
The most competitive retrofit funding applications share several characteristics: clear evidence of the need for investment (stock condition data and EPC ratings); a realistic and costed delivery plan with identified supply chain partners; demonstrated PAS2035 compliance capability; and a resident engagement strategy that shows the applicant has thought through how works will be delivered in occupied properties.
Applications that treat PAS2035 compliance as an afterthought — or that cannot demonstrate they have qualified RC capacity lined up — are significantly less likely to succeed in competitive funding rounds. Securing RC involvement in the application process, not just in delivery, is increasingly a differentiator.
The retrofit funding landscape evolves quickly. Scheme details, eligibility criteria and application windows change. The best sources of current information are the DESNZ website, TrustMark's scheme guidance pages and accreditation body bulletins. Subscribing to industry newsletters and maintaining relationships with funding bodies ensures you are aware of changes before they affect your programme.
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