The application window for Wave 3 of the Warm Homes: Social Housing Fund (WH:SHF) closed at midday on 25 November 2024, according to the scheme guidance1. The fund pays for energy efficiency upgrades and low-carbon heating measures in homes in England1. The same date closed Phase 4 applications to the Public Sector Decarbonisation Scheme, a separate fund for non-domestic public sector buildings2.
Wave 3 was originally allocated £1.29bn for delivery from April 2025 to March 2028, and the Warm Homes Plan later announced a further £295m of grant funding through the scheme in financial year 2026/271. Grant recipients were previously allowed to keep delivering with co-funding for six months after the grant window, to September 2028; that has now been extended to March 20301. Grant funding may be drawn down from 1 April 2025 and must be spent by 31 March 20281.
The guidance sets out the scheme's place in wider government plans:
"it will invest £15 billion over this Parliament to cut energy bills, upgrade up to 5 million homes and support up to 180,000 additional jobs by 2030"
The guidance also records that low income and fuel poor households will benefit from around £5 billion of investment to 20301. On eligible measures, domestic batteries installed alongside solar PV were added in June 2025, paused in November 2025 because no Microgeneration Certification Scheme product standard was in place, and may be installed again from 2 February 2026 under an interim solution1. Air-to-air heat pumps are not eligible until they can be MCS certified, which the guidance expects in 2026, and heat batteries are not eligible until MCS certification exists1. Phase Change Material heat batteries for hot water cannot currently be installed through the scheme1.
| Item | Detail |
|---|---|
| Application window closed | Midday, 25 November 20241 |
| Original allocation | £1.29bn, April 2025 to March 20281 |
| Additional funding | £295m in FY 2026/271 |
| Grant funding must be spent by | 31 March 20281 |
| Co-funding delivery permitted until | March 20301 |
Why it matters for households
The WH:SHF is not a scheme householders apply to themselves. Grants go to social landlords and local authorities, so the practical effect for a tenant in a social home is that their landlord's bid either went in before the deadline or did not. The measures funded include insulation and low-carbon heating, which affect how much a home costs to heat and how much of its energy demand it can meet itself. The guidance states that domestic batteries should only be installed where they drive energy bill savings for the household, and that they can only be installed where they complement existing or new solar PV1. It also recommends that the retrofit coordinator checks whether a preferable time of use tariff is available and that a functioning smart meter is present, so the household can realise the full benefit1. For owner occupiers and private tenants, the relevant support routes are different; the Boiler Upgrade Scheme offers capital grants towards heat pumps in England and Wales, with £7,500 for ground source systems when commissioned and a 45kW size limit per property2. The government has announced a further £1.5 billion for that scheme covering 2025 to 2028, which the Heat Pump Association calculates will fund 206,000 installations2.
What happens next
Grant recipients can draw down up to 20% of their total award from 1 April 2025 for eligible costs incurred preparing phase requests1. Co-funded delivery may continue until March 20301. The guidance states that heat network zoning is expected to be implemented as a national policy programme in 20251. It does not report what happens to social homes whose landlords did not secure Wave 3 funding.
Sources2 cited
- WH:SHF Wave 3 Scheme Guidance, assets.publishing.service.gov.uk
- Heat Pump Funding: Decarbonising Heat and Buildings, kensa.co.uk