The Autumn Budget, published on 30 October 2024, committed £3.4 billion over the next three years to improve the energy efficiency of households that need it most1. More than half of that funding, £1.8 billion, will support fuel poverty schemes, which the government says will deliver improvements and decarbonisation to more than 225,000 households and reduce their energy bills by over £200 a year1.
The money will be allocated and distributed by local authorities in England that choose to apply, through local grants aimed at helping low-income and private rented homes reach Energy Performance Certificate (EPC) Band C1. Warm Homes Local Grant guidance states that eligible homes may access up to £15,000 for energy performance improvements and an additional £15,000 for installing low-carbon heating such as heat pumps1. For multiple properties, funding is reduced by 50 per cent per additional home, and for social housing the cost of upgrades and low-carbon heating is shared between grant funding and the social housing landlord1.
The Budget also pledged to boost funding for the Boiler Upgrade Scheme in England and Wales for this year and next, in response to demand; that scheme currently offers grants of up to £7,500 towards replacing outdated boilers with heat pumps1. Separately, the government had already committed to a £6.6 billion Warm Homes Plan, aiming to upgrade 5 million homes over five years and to raise as many fuel-poor homes as possible to EPC Band C by 20301. The Chancellor also committed £5 billion to deliver the government's housing plan1.
"Tenants in properties with an EPC rating of D to G will be paying energy bills almost three times higher than those in EPC C-rated homes, which highlights an urgent need for support and regulation."
| Measure | Figure |
|---|---|
| Total energy efficiency commitment | £3.4bn over three years1 |
| Fuel poverty schemes | £1.8bn, more than 225,000 households1 |
| Warm Homes Local Grant, per eligible home | Up to £15,000, plus up to £15,000 for low-carbon heating1 |
| Boiler Upgrade Scheme grant | Up to £7,5001 |
| Warm Homes Plan | £6.6bn, 5 million homes over five years1 |
Why it matters for households
For a household in a cold, poorly rated home, the practical effect of this funding runs through fuel poverty schemes administered locally rather than nationally. Because allocation sits with councils in England that choose to apply, whether a given home can access the money depends on its local authority taking part, and the guidance figures above describe what eligible homes may access rather than a guarantee. The stated aim is to lift homes to EPC Band C, the point at which Elmhurst Energy says bills are around a third of those in D to G rated properties1. For a household, that gap is the difference between a home that is expensive to keep warm and one that is cheaper to run, which is the core of household energy independence. The £200-plus annual saving cited for the fuel poverty schemes is the government's own estimate1. Details of how individual households apply, and which measures are covered in each area, have not been reported here.
What happens next
The £3.4 billion is to be spent over three years from the Budget1. Local authorities in England must choose to apply to distribute the funding1. The Boiler Upgrade Scheme boost covers this year and next1. The Warm Homes Plan target of upgrading 5 million homes runs over five years, with the EPC Band C fuel poverty goal set for 20301.
Sources1 cited
- UK Budget: £3.4bn for Low-Income Upgrades - Elmhurst Energy, elmhurstenergy.co.uk