The successful local authorities for Phase 2 of the Home Upgrade Grant (HUG 2) were announced on 22 March 2023, according to the scheme's GOV.UK publication page1. Local authorities had to apply for the funding by 27 January 2023, and the Department for Energy Security and Net Zero page records the announcement as an update to the publication1.
Up to £630 million of grant funding is available for successful local authorities to deliver HUG 2 from April 2023 until March 2025, with funding released in the financial years 2023 to 2024 and 2024 to 20251. The scheme provides energy efficiency upgrades and low carbon heating via local authority funding to households in England that are low income, off the gas grid, and have an Energy Performance Certificate (EPC) between D and G1. Measures could include, for example, home insulation with an air source heat pump if suitable, with upgrades tailored to individual homes1.
The Heat and buildings strategy announced £950 million to be allocated to the home upgrade grant from April 2022 to March 20251. Applications were assessed by BEIS at two deadlines, 18 November 2022 and 27 January 2023, across three stages: an outline application stage, a delivery assurance check, and a batch application stage1. The batch stage is repeated throughout the delivery window, with funding released in batches subject to need1.
Contribution rules differ by tenure. Homeowners on a low income do not contribute to the cost of upgrades, private landlords must contribute at least a third of the total cost, and social landlords must contribute at least half1. All upgrades need to be within the relevant cost caps to be eligible1.
"Home Upgrade Grant: Phase 2 successful local authorities announced."
The publication does not list the names of the successful local authorities on this page; it links to a separate page of successful local authorities1. The number of authorities funded and the amounts allocated to each have not been reported here1.
| Item | Detail |
|---|---|
| Funding available | Up to £630 million |
| Delivery window | April 2023 to March 2025 |
| Application deadline | 27 January 2023 |
| Eligibility | Low income, off gas grid, EPC D to G |
| Owner contribution | None for low income homeowners |
| Private landlord contribution | At least a third of total cost |
| Social landlord contribution | At least half of total cost |
Why it matters for households
HUG 2 is aimed at homes that are off the gas grid, which typically rely on fuels such as heating oil, LPG or electricity for heat, and at households on low incomes with poorer EPC ratings1. For those homes, the grant route runs through the local authority rather than a national application, so whether a household can access funding depends on whether its council secured an allocation1. The scheme covers both energy efficiency measures and low carbon heating, which affects both how much heat a home loses and how that heat is generated1. The page states that eligible homeowners, tenants and private landlords were able to check whether their local authority had funding and contact them for next steps1. Phase 2 is now closed to applications1.
What happens next
Funding is released to successful local authorities in batches across the delivery window, subject to need, under the batch application stage1. The publication has since been updated several times, including delivery guidance for local authorities added on 26 April 2023 and a 2024 update to that guidance added on 28 March 20241. The page was last updated on 30 April 2025 with a revised local authority data collection template1.