Energy Grants Available in Lancashire for 2026: Complete List

Lancashire homeowners can access over £30,000 in combined energy grants in 2026 if they meet the right criteria. From the £7,500 government heat pump grant to free insulation through government energy efficiency schemes and local authority funding, there are more financial support options available now than at any point in the past decade. Here is every grant worth knowing about, with specific details on how to claim them from a Lancashire address.

The government heat pump grant: £7,500 for Heat Pumps

The government grant is the single biggest financial incentive for Lancashire homeowners looking to switch from gas or oil heating to a heat pump. It provides up to £7,500 towards the cost of a heat pump, ground source heat pump, or biomass boiler.

Who qualifies: Any homeowner in England or Wales with a valid Energy Performance Certificate. There is no income test. The property must not be a new build. You can claim once per property. Landlords can also apply for rental properties.

How to apply: You do not apply directly. Your qualified installer applies on your behalf through the government grant portal. The grant is deducted from your final bill, so you never pay the full price upfront. Processing takes around two to four weeks in most cases.

In Lancashire, dozens of qualified installers can handle a government grant scheme application. Demand has increased, so book your survey early. Wait times for installation are currently four to eight weeks across most of the county.

government energy efficiency schemes: Free Insulation and Heating Upgrades

The government energy efficiency scheme is the main route to free insulation and heating improvements for lower-income Lancashire households. It runs until March 2026, with a possible extension expected.

government energy efficiency schemes can fund loft insulation, cavity wall insulation, solid wall insulation, floor insulation, heating system upgrades, and in some cases solar panels. The value of work can be significant – a solid wall insulation job funded through government energy efficiency schemes could be worth £8,000 to £12,000.

To qualify, you typically need to meet two conditions. First, your household must receive a qualifying benefit such as Universal Credit, pension top-up benefits, Child Tax Credit, Working Tax Credit, income support benefits, income-based Jobseeker’s Allowance, or income-related Employment and Support Allowance. Second, your home should have an EPC rating of D, E, F, or G.

Lancashire has strong government energy efficiency schemes uptake. Councils in Burnley, Hyndburn, Pendle, and Blackburn with Darwen have been particularly active in promoting the scheme, as these areas have high proportions of older, poorly insulated housing.

government energy efficiency scheme flexibility provisions: When You Don’t Receive Benefits

government energy efficiency scheme flexibility provisions is a route into the government energy efficiency scheme for households that do not receive qualifying benefits but are still considered vulnerable or in fuel poverty. Your local council sets the criteria, and Lancashire councils have been relatively generous in their definitions.

Common government energy efficiency scheme flexibility provisions eligibility criteria used by Lancashire councils include households with a combined income below £31,000, homes with an EPC rating of E, F, or G, households with members who have a long-term health condition worsened by cold, and homes in the bottom 40% of the Index of Multiple Deprivation.

If you think you might qualify through the Flex route, contact your local council’s housing or energy team. They can issue a declaration letter that your government energy efficiency scheme installer needs to proceed with the application.

0% VAT on Energy-Saving Measures

Since April 2022, the UK government has applied a 0% VAT rate to the installation of energy-saving materials in residential properties. This covers solar panels, heat pumps, insulation, heat batteries, and other qualifying measures.

The saving is significant. On a £6,000 solar panel installation, you save an estimated £1,200 compared to the standard 20% VAT rate. On a £10,000 heat pump installation, you save an estimated £2,000. The 0% rate is applied automatically by your installer – you do not need to claim it separately.

This relief is currently set to run until March 2027, though many expect it to be made permanent. It applies whether or not you also receive a grant like a government grant scheme or government energy efficiency schemes.

government insulation scheme

The government insulation scheme launched in 2023 and provides a wider eligibility pool than standard government energy efficiency schemes. It focuses specifically on insulation measures for homes in lower council tax bands.

If your home is in council tax bands A to D (which covers the vast majority of homes in Lancashire’s terraced streets and estates), you may qualify for free or heavily subsidised cavity wall insulation, loft insulation, or internal wall insulation. There is no benefits requirement for the council tax route, although household income thresholds may apply.

The scheme also covers households receiving certain benefits regardless of council tax band. Check with a qualified installer or your local council to see if your property qualifies.

Greater Manchester Combined Authority Green Programmes

Homeowners in the ten Greater Manchester boroughs (including Bolton, Bury, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford, Wigan, and Manchester) can access additional support through the Greater Manchester Retrofit Accelerator and related programmes.

These programmes have funded thousands of home energy improvements across Greater Manchester, including insulation, heating upgrades, and renewables. Funding availability varies throughout the year, so it is worth registering your interest even if nothing is available right now.

The GM Warm Homes service provides free energy guidance and can help you navigate the various grant options. Contact them on their helpline or through your local council’s website.

Lancashire County Council and District Council Grants

Individual Lancashire districts sometimes offer their own energy grants or top-up funding. These vary by area and budget year, but here are some examples of schemes that have been available:

• Burnley Borough Council – Has run programmes offering free boiler replacements and insulation top-ups for qualifying residents.
• Lancaster City Council – Has offered energy efficiency grants and advice through its climate action plans.
• Blackburn with Darwen – Has partnered with national schemes to deliver free insulation and heating to vulnerable residents.
• Pendle Borough Council – Has worked with government energy efficiency scheme installers to target the borough’s older housing stock.

Contact your specific district council to ask about current availability. Council programmes tend to have limited budgets that are allocated on a first-come, first-served basis.

local authority adaptation grant for Energy Adaptations

The local authority adaptation grant (DFG) is available through your local council and can fund adaptations to help disabled residents stay warm and comfortable. While primarily used for mobility adaptations, it can also cover heating improvements where a disability makes a person particularly vulnerable to cold.

Grant amounts vary by local authority. It is means-tested for adults but not for children. Applications are made through your local council’s environmental health or housing team, and an occupational therapy assessment is usually required.

How to Maximise Your Grant Entitlement

You can often combine multiple grants and incentives. For example, a Lancashire homeowner could potentially receive government energy efficiency schemes-funded insulation, a government grant towards a heat pump, and 0% VAT on solar panels – all on the same property. The key is to plan your improvements in the right order and apply to each scheme separately.

Start by getting an EPC assessment if you do not already have one. This costs £60 to £90 and gives you the baseline data needed for most grant applications. Then work through the list above, starting with the grants that have the most generous funding or the shortest application windows.

Can I get multiple energy grants for the same property?

Yes, you can combine different grants as long as they fund different measures. For example, government energy efficiency schemes can fund insulation while the government grant funds a heat pump on the same property. You cannot use two grants for the same measure (for example, claiming both government energy efficiency schemes and government grant scheme for a heat pump).

Do I need to pay anything upfront for government energy efficiency schemes?

In most cases, no. If you fully qualify for government energy efficiency schemes, the work is done at no cost to you. The energy company funds the installation directly. You should never be asked to pay a deposit or fee to apply. Be wary of any company asking for upfront payments for government energy efficiency schemes work.

What if I do not qualify for any grants?

Even without grants, you benefit from 0% VAT on most energy-saving installations, which saves 20% off the total cost. Some installers also offer interest-free payment plans. Green mortgages and green home improvement loans from lenders like Nationwide and Barclays offer reduced rates for energy efficiency work. It is also worth checking whether your local credit union offers affordable energy improvement loans.