The Warmer Homes Scotland scheme was replaced by a new version in early 2023, according to an analysis of heat funding published by Nesta. The new programme is based on a "whole house retrofit" approach, rather than the measure-by-measure replacement that characterised the old version1.
Under the previous version, the scheme primarily replaced broken equipment, swapping an old gas boiler for either a heat pump or a more efficient modern gas unit. The replacement version instead assesses the home as a whole1. Warmer Homes Scotland is a national Scotland-wide scheme aimed at lower-income and vulnerable households living in fuel poverty, providing fully funded home improvements intended to reduce energy bills1.
The scheme sits alongside other funding routes in Scotland. From April 2023 to March 2025, the UK-wide Energy Company Obligation (ECO) scheme and Scotland's Home Energy Scotland programme accounted for the largest share of heat pump installations. At its peak in the first quarter of 2024, ECO applications alone were behind roughly half of Scottish heat pump installs1. Home Energy Scotland has offered grants of £7,500 for heat pumps, or £9,000 for qualifying rural homes, alongside up to £7,500 in interest-free loan since 20221.
Figures from the 2024/25 Warmer Homes Scotland annual report show that almost 5,000 gas boilers were installed through the scheme last year, against just 350 air source heat pumps ordered1. The report is cited as the source for those figures; no breakdown of the measures delivered under the whole house retrofit approach has been reported.
"The new version of the WHS programme, which replaced the previous version in early 2023, is based on a 'whole house retrofit' approach."
Why it matters for households
For a household in fuel poverty, the change of approach alters what a scheme visit is intended to achieve. The old model responded to a broken boiler; the whole house retrofit model starts from the property as a system, which in principle means insulation, heating and other measures are considered together rather than one at a time1.
The practical effect on a home's energy independence depends on what is installed. A heat pump or a modern gas boiler both change how a home is heated, but only the heat pump moves a household away from gas. The 2024/25 figures show gas boilers still dominated installations under the scheme, at almost 5,000 against 350 air source heat pumps1. Households off the gas grid face a different set of options again, since they cannot fall back on mains gas and often use heating oil, which has no price cap1.
Eligibility, the measures available and how Warmer Homes Scotland compares with the Home Energy Scotland Grant and Loan are set out in the site's guides to who can get help from Warmer Homes Scotland and what measures can be granted.
What happens next
Nesta states that the Energy Company Obligation scheme is set to be wound up at the end of this year, and that the removal of financing schemes has a demonstrable effect on home decarbonisation trends1. No replacement funding route for Scotland has been reported.