Green Homes Grant Successor Schemes: What Is Available in 2024?

The previous government grant scheme voucher scheme ended in March 2021 after a troubled rollout, but several successor programmes now provide similar or greater support for home energy improvements in Lancashire. The main schemes available in 2024 include government energy efficiency schemes (free insulation and heating for benefit recipients), the government insulation scheme (insulation for Council Tax band A-D homes), the government heat pump grant (up to £7,500 towards heat pumps), the Home Upgrade Grant (for off-grid homes), and 0% VAT on energy-saving installations. Together, these schemes provide more comprehensive funding than the previous government grant scheme ever did – but they are harder to navigate because they are separate programmes with different eligibility rules.

If you missed out on the previous government grant scheme or have been waiting for something similar, the current landscape actually offers better support for most Lancashire homeowners. Here is a clear guide to what is available, who qualifies and how to access each scheme.

government energy efficiency schemes: The Main Insulation and Heating Scheme

government energy efficiency schemes is the largest home energy scheme in England, providing fully funded insulation, heating upgrades and energy efficiency measures. It is funded by the major energy suppliers and delivered through qualified installers.

• What it covers: Loft insulation, cavity wall insulation, solid wall insulation, underfloor insulation, room-in-roof insulation, boiler replacement, heating controls, draught-proofing
• Who qualifies: Households receiving qualifying benefits (Universal Credit, pension top-up benefits, JSA, ESA, income support benefits, Child Tax Credit, Housing Benefit) with a property rated EPC D or below. government energy efficiency scheme flexibility provisions allows councils to refer non-benefits households in fuel poverty.
• Cost to you: Free for eligible households
• Runs until: March 2026

government energy efficiency schemes has insulated thousands of Lancashire homes and remains the primary route for funded home improvements. Our detailed guide to government energy efficiency schemes eligibility in Lancashire covers the application process.

government insulation scheme (government insulation scheme)

government insulation scheme is a newer scheme that targets homes in Council Tax bands A-D with specific insulation measures. It has broader eligibility than government energy efficiency schemes because it is not solely based on benefits receipt.

• What it covers: Cavity wall insulation, loft insulation, solid wall insulation, underfloor insulation, flat roof insulation, room-in-roof insulation
• Who qualifies: Homes in Council Tax bands A-D in England. No benefits requirement for the property-based route. A separate benefits-based route exists for households on qualifying benefits in any Council Tax band.
• Cost to you: Free or heavily subsidised for eligible households
• Runs until: March 2026

government insulation scheme is particularly relevant for Lancashire homeowners who do not receive benefits but live in lower Council Tax band properties (which is common across East Lancashire). If your home is in band A-D and needs insulation, check government insulation scheme eligibility with a qualified installer.

government heat pump grant

The government grant scheme provides a government grant (currently up to £7,500, subject to eligibility) towards the cost of replacing a fossil fuel heating system with a heat pump.

• What it covers: Air source heat pumps, ground source heat pumps
• Who qualifies: Any homeowner in England or Wales replacing a fossil fuel heating system. No income or benefits test.
• Grant amount: £7,500 per property
• Runs until: March 2028

The government grant scheme has been increasingly popular across Lancashire as heat pump technology matures and more local installers become qualified. Our step-by-step guide to the government heat pump grant covers the full process.

Home Upgrade Grant (HUG)

HUG targets off-gas-grid homes with poor energy efficiency. It is particularly relevant for rural Lancashire properties that rely on oil, LPG or electric heating.

• What it covers: Insulation, heat pumps, solar panels and other energy efficiency measures for off-gas-grid homes
• Who qualifies: Households with an income below £36,000 (or receiving qualifying benefits) living in off-gas-grid properties with an EPC of D or below
• Maximum grant: Up to £10,000 per property
• Runs until: March 2025 (current phase)

Lancashire County Council and district councils administer HUG locally. Properties in the Ribble Valley, Forest of Bowland, Over Wyre, rural Fylde and other off-grid areas are prime candidates. Contact your local council to check eligibility.

0% VAT on Energy-Saving Materials

All residential installations of solar panels, batteries, heat pumps and insulation benefit from 0% VAT until at least March 2027. This is not a grant but a significant cost reduction that applies to everyone regardless of income or benefits status.

• What qualifies: Solar panels, batteries, heat pumps, insulation materials, heating controls
• Who benefits: All residential property owners
• Saving: 20% off the total cost (compared to the standard VAT rate)
• Runs until: March 2027

Our guide to 0% VAT on solar panels explains the detail.

How to Navigate the Landscape

With multiple schemes available, finding the right one for your circumstances can be confusing. Here is a simplified decision tree for Lancashire homeowners:

On qualifying benefits + EPC D or below? Start with government energy efficiency schemes. You could get free insulation, heating upgrades and more. Contact an government energy efficiency schemes installer or your local council.

Not on benefits + Council Tax band A-D? Check government insulation scheme eligibility for funded insulation. Contact a qualified installer.

Want a heat pump (any income)? Apply for up to £7,500 in government grants through a qualified installer.

Off the gas grid + income below £36,000? Check HUG eligibility through your local council. Could fund insulation plus a heat pump.

Want solar panels (any income)? Benefit from 0% VAT. Get quotes from qualified installers. No grant application needed for the VAT saving.

Not sure where to start? Contact your local council’s housing or energy team. They can assess your situation and signpost you to the right scheme. Our guide to local authority grants for energy upgrades covers what each council offers.

Can I combine multiple schemes?

Yes, in many cases. You can receive government energy efficiency schemes funding for insulation and a government grant for a heat pump on the same property. You cannot use two grants for the same specific measure (e.g., you cannot get both government energy efficiency schemes and government insulation scheme funding for the same cavity wall insulation). The 0% VAT applies on top of any grants. Your installer can advise on the most beneficial combination for your situation.

Are these schemes likely to continue?

government energy efficiency schemes and government insulation scheme run until March 2026. government grant scheme runs until March 2028. Successor schemes are expected but not yet confirmed. If you are eligible now, applying sooner rather than later secures the funding while it is available. Waiting risks missing out if schemes close or eligibility changes.

Why was the original previous government grant scheme scrapped?

The previous government grant scheme voucher scheme was scrapped after just six months due to administrative problems, installer shortages and low voucher redemption rates. The successor schemes (government energy efficiency schemes, government insulation scheme, government grant scheme, HUG) were designed to address these issues by using established delivery mechanisms, longer timescales and clearer eligibility criteria. The current landscape, while more complex, is functioning much better than the original GHG scheme did.