The short answer: In 2027 the Warm Homes Plan moves into its next phase. ECO4 has ended (31 December 2026). The £100 Household Energy Payment is paid from January. On 31 March 2027, both 0% VAT on installed solar, batteries and heat pumps and the £9,000 oil and LPG heat pump grant end. From 2027/28 the government plans a single area-based low-income scheme, though the start date and design aren’t published. The Warm Homes Agency starts work during the year. The £7,500 heat pump grant and the Warm Homes Loan carry on.
Last verified: 30 October 2026 against the Warm Homes Plan, Budget 2026, Ofgem and HMRC.
Looking for this year’s schemes? Our Warm Homes Plan 2026 guide covers what’s open today. This page is about what changes next year.
Warm Homes Plan 2027 timeline
| When | What changes | Status |
|---|---|---|
| Late autumn 2026 | Home Energy Advice service becomes the GOV.UK route into the Warm Homes: Local Grant | Announced; not live on 30 Oct 2026 |
| Late 2026 / early 2027 | Second window for more Warm Homes Loan lenders, onboarding in early 2027 | In the scheme rules |
| 31 December 2026 | ECO4 ends. No ECO5 | Confirmed |
| From January 2027 | £100 Household Energy Payment for most council tax band A–D homes in England | Announced in Budget |
| 31 March 2027 | Last day of 0% VAT on installed solar, batteries, heat pumps and insulation | Confirmed (HMRC) |
| 31 March 2027 | £9,000 oil and LPG rate of the Boiler Upgrade Scheme ends (£7,500 continues) | Ofgem: “available until 31 March 2027” |
| 31 March 2027 | Warm Home Discount 2026/27 credited to bills by this date | GOV.UK |
| 1 April 2027 | 5% VAT on energy-saving materials; heat batteries added to the 5% list | Confirmed (Budget) |
| April 2027 (2027/28) | Boiler Upgrade Scheme budget held at £400 million | Budget |
| From 2027/28 | The government “intend[s] to integrate” the Local Grant and the Social Housing Fund into one area-based low-income scheme. The Local Grant’s delivery window still runs to 31 March 2028 | Planned; start date and design not published |
| April 2027 | British Industrial Competitiveness Scheme cuts electricity bills for eligible manufacturers | Budget |
| 1 July 2027 | 0% VAT on household electricity ends | Budget |
| 2027 | Warm Homes Agency “initial operations”, with advice online and by phone | Planned; no exact date |
| 2027 | One-off Debt Relief Scheme for energy debt launches | Budget |
| End of 2027 (aim) | Gas standing charges removed from household bills | Ofgem asked; aim, not law |
| 31 March 2028 | Warm Homes: Local Grant delivery window closes | WHLG guidance |
| October 2030 | Private rented homes to reach EPC C (with exemptions and a £10,000 cap) | Planned; needs legislation |
The two 31 March 2027 deadlines
If you’re planning solar panels, a battery or a heat pump, 31 March 2027 matters twice:
- 0% VAT ends. HMRC says installations of energy-saving materials go back to 5% from 1 April 2027. On a £7,000 (before VAT) solar system that’s £350 more; on a £12,000 heat pump before the grant, it’s £600 more. See 0% VAT relief.
- The £9,000 heat pump rate ends. Homes heated by oil or LPG with no mains gas get £9,000 off an air or ground source heat pump instead of £7,500. GOV.UK says the installer must install within 120 days of applying, so start in good time. See the £9,000 oil and LPG grant.
The prices above are examples to show the VAT difference, not quotes.
You can spread the rest of the cost with a Warm Homes Loan for solar panels or a Warm Homes Loan for a heat pump.
What ends at the end of 2026
ECO4, the supplier-funded scheme for people on benefits, runs to 31 December 2026, according to Ofgem. The government has said there will be no successor obligation, so there is no ECO5. Ofgem says ECO4 covers measures installed up to 31 December 2026, so get the work done, not just booked. Read what replaces ECO4.
Low-income grants in 2027: what’s known
- The Warm Homes: Local Grant runs to 31 March 2028 through councils. Many councils were full for 2026/27; see is your council full?
- The Warm Homes Plan says that “from 2027/28 onwards, we intend to integrate the WH:SHF and the WH:LG into a single low-income capital scheme which will shift toward area-based delivery.”
- The Plan promised more detail by spring 2026. We hadn’t found a published design for the new scheme when we checked on 30 October 2026.
- The Budget on 28 October 2026 cut £1 billion of Warm Homes Plan capital grant and said “the majority of WHP funding for low-income households and social housing, delivered by mayors and councils, is protected.”
“Area-based” suggests councils will target streets and neighbourhoods rather than wait for applications, but the government hasn’t confirmed how people will apply.
Heat pumps and solar in 2027
- Boiler Upgrade Scheme: £7,500 continues; the government will “maintain the Boiler Upgrade Scheme at current funding levels of £400 million in 2027‑28”.
- Warm Homes Loan: more lenders are expected after the next application window, which the scheme rules say opens in late 2026 for onboarding in early 2027.
- Air-to-air heat pumps can join the loan scheme once MCS certification exists for them (no date set).
- VAT: 5% on energy-saving materials from 1 April 2027, with heat batteries added to the list.
What should you do now?
| If you… | Do this before 2027 |
|---|---|
| Are on a means-tested benefit | Ask about ECO4 now (it ends 31 December), and check the £150 Warm Home Discount |
| Earn under about £36,000 in England | Apply for the Warm Homes: Local Grant while your council has funding |
| Heat with oil or LPG | Get a heat pump survey early to use the £9,000 grant before 31 March 2027 |
| Want solar or a battery | Install by 31 March 2027 to keep 0% VAT |
| Rent out a home | Plan for EPC C by October 2030; see energy grants for landlords |
| Live in a band A–D home in England | Nothing for the £100 if you pay council tax by direct debit; otherwise wait for your council |
For every scheme deadline, see our energy grant deadline tracker.
Warm Homes Plan 2027: common questions
What is the Warm Homes Plan?
The government’s plan, published in January 2026, to upgrade up to 5 million homes by 2030 with £15 billion of public investment. It covers grants for lower-income homes, the Boiler Upgrade Scheme, the Warm Homes Loan, new rules for landlords and a new Warm Homes Agency. The Budget on 28 October 2026 took £1 billion of capital grant out of it.
Will there be a Warm Homes grant in 2027?
Yes. The Boiler Upgrade Scheme carries on, with its budget held at £400 million in 2027–28. The Warm Homes: Local Grant’s delivery window runs to March 2028. From 2027/28 the government intends to merge the Local Grant and the Social Housing Fund into a single low-income scheme with area-based delivery, but its design hadn’t been published when we checked.
Does the £9,000 heat pump grant end in 2027?
Yes. Ofgem says the £9,000 rate for air-to-water or ground source heat pumps in eligible off-gas homes “is available until 31 March 2027”. The standard £7,500 grant continues.
When does 0% VAT on solar panels and heat pumps end?
31 March 2027. HMRC says installations of energy-saving materials go back to 5% VAT from 1 April 2027.
Is ECO4 running in 2027?
No. Ofgem says ECO4 runs to 31 December 2026, and the government has said there will be no successor obligation. See what replaces ECO4.
When does the Warm Homes Agency start?
The government says it will begin “initial operations” in 2027, with a free advice service online and by phone. See our Warm Homes Agency guide.
When is the £100 Household Energy Payment paid?
From January 2027, by councils, to most households in council tax bands A–D in England. See our £100 payment guide.
Do landlords need EPC C by 2027?
No. The Warm Homes Plan says private landlords will need to meet EPC band C “by October 2030”, unless the property has a valid exemption, with a spending cap of £10,000. Upgrades made from October 2025 count towards the cap. These are government proposals still going through Parliament.
Is Great British Energy Guide part of the Warm Homes Plan?
No. We are an independent grants guide, not the government, the government-owned Great British Energy company, your council or the Warm Homes Agency.