A Guide to the Warm Homes Fund

Table of Contents

What is the Warm Homes Fund?

Overview

The Warm Homes Fund (WHF) is a £150 million support fund that was commissioned by Affordable Warmth Solutions (AWS). It was established by the National Grid and the Community Interest Company, across England, Wales, and Scotland. The main aim of the scheme is to support households that are struggling with fuel poverty and who don’t use mains gas as their primary source of heating. Also, it is designed to help Local Authorities, Registered Social Landlords, and other organisations that are working in partnership with them, to tackle some of the issues affecting fuel poor households.

Background

Around 4 million households in the UK are in fuel poverty, with this number set to rise as a result of the current energy crisis. Many people will be left unable to heat their home to a warm and healthy temperature, particularly in the cold winter months when it is needed most. On top of being on low incomes, many householders also have the burden of relying on heating systems that are expensive to run and/or are inefficient and unsuitable for their needs. Furthermore, due to their circumstances or the type of home they are living in, they might not currently be able to benefit from existing mandated schemes.

In 2014 the government put in place a statutory target to make sure fuel poor homes across the country achieve a minimum energy efficiency rating of Band C by 31st December 2030. Targets in Scotland and Wales were set out by the Scottish Parliament and Welsh Assembly respectively. NEA’s Annual Fuel Poverty Monitor reported that without extra investment and ambition these targets might not be reached.

warm homes fund for heat pumps

Funding

To maximise the impact of the £150 million WHF, all homes are expected to be insulated to the recommended industry standards and bidders and their partners are encouraged to look for extra funding to ensure these standards are met. The fund is designed to lower bills, increase comfort in non-gas fuel poor households, and provide better health outcomes for some of the most severe cases of fuel poverty.

The funding is divided into three broad categories:

Category 1- urban homes and communities – this includes new central heating systems which will give homes better heating and hot water. It could also add other heating solutions.

Category 2- rural homes and communities- customers in this category would normally be offered ‘non-gas solutions which can embrace air source heat pumps, oil, and LPG’.

Category 3- specific energy-efficient/health-related solutions- this may involve national or regional programs that put together relevant organisations and charities to help residents with advice and/or health-connected programs related to fuel conditions.

What are the eligibility criteria for the Warm Homes Fund?

If you live in a privately owned or rented home there are two ways of qualifying for vouchers:

  • You are a homeowner or renting tenant and receive key qualifying benefits
  • You are a social tenant or live in a privately owned or rented home and are spending a high amount of disposable income on household fuel

Warm Homes Fund key facts

  • More than £110 million committed to date to provide first time central heating and related solutions to fuel poor households.
  • It has generated an additional £106m for investment in fuel poor homes. It is expected that it will grow to around £200m by the end of the scheme, reaching a total investment of £350m.
  • 21,000 installations have already been completed with over 40,000 homes expected to benefit from the fund.
  • More than 100 Local Authorities and Registered Social Landlords are currently contracted to deliver 150+ projects.
  • Further bidding for funding occurred in January 2022 with all installations to be finished by March 2024.       
  • Voluntary contribution of £150m to help with the challenges people face living in cold, damp, and energy inefficient properties.

To find out if you qualify for the Warm Homes Fund contact us today.

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Clive Whyte
I'm Clive, a sustainability advocate and green energy expert. I have over 25 years of industry experience and now I spend my time sharing my knowledge online with the hope of educating Britain towards a more sustainable future.