4 government grants that can reduce your energy bills

There are several government schemes other than ECO4 which you can utilise to save money on your energy bills. These are BUS, The Warm Homes Discount, LAD, and HUG. This article will explain what each of these grants offer and how you can qualify for them. Scroll down to see which grants we are directly helping with and in which areas.


What is the Boiler Upgrade Scheme (BUS)?

The Boiler Upgrade Scheme runs from April 2022 to April 2025, and offers government grants to property owners for the installation of heat pumps (and in some circumstances biomass boilers) to replace fossil fuel heating systems. It is run on a first come first served basis. 450 million of funding is available over the three years.

Your installer will apply for the grant for you and the value of the grant will be taken off the price you pay. The grant is from £5,000 to £6,000.

After you qualify your installer has three months to install an air source heat pump or biomass boiler at your home, or six months if you are getting a ground source heat pump installed. 

To qualify:

  • You must be a homeowner or small business owner (private landlords and second-home owners are eligible also)
  • Your property is in England or Wales
  • You must have a valid Energy Performance Certificate (EPC) and your EPC must not have any recommendations for loft or cavity wall insulation

What is The Warm Homes Discount?

The Warm Homes Discount is a one-off £150 discount deducted from your energy bill in winter (between October and March 2022-23).

You can qualify in one of two ways:

  • You are in receipt of any of the following benefits:

Pension Credit Guarantee Credit

Income related Employment and Support Allowance

Income based Jobseeker’s Allowance

Income Support

Universal Credit

Housing benefit

Child Tax Credits and Working Tax Credits 

  • You are in, or at risk of falling into, fuel poverty

If you receive Pension Credit Guarantee Credit you should automatically get the money off an energy bill. If you’re in or nearly in fuel poverty, contact your supplier about the discount.


What is the Local Authority Delivery (LAD)?

The Local Authority Delivery (LAD) refers to a government funding scheme aimed toward individuals who cannot easily afford home upgrades themselves. The government awards funding to local authorities to help them upgrade energy inefficient, low-income households. Your local council must bid to win the funding, and it is allocated regionally. In March 2021, the government announced a further £200m would be made available to the LAD scheme in 2021-22, with all delivery to be completed by 31 March 2023.

You can qualify if:

  • Your home is on the gas grid
  • You live in a property with poor energy efficiency 
  • You, or someone in your household, is in receipt of any of the following benefits:

Child Tax Credit

Working Tax Credit

Universal Credit

Pension Credit Guarantee Credit

Income Support

Income-based Jobseeker’s Allowance

Income-related Employment and Support Allowance

  • Your combined household income is below £30,000


What is the Home Upgrade Grant (HUG)?

The Home Upgrade Grant (HUG) is the same as the LAD scheme but it is only for homes with no connection to the gas grid. We are currently helping deliver LAD and HUG in Cheshire and Cumbria.


What home upgrades are available on LAD and HUG?

The main measures installed are laid out below with how much money you could save per year based on the average house type in England – a 3 bed semi.

External wall insulation (EWI)
External wall insulation involves fixing a layer of insulation material to the outside walls of your house. It is then covered with render or cladding. There are various types of finish to EWI. EWI insulates your house from the outside and improves the visual appearance of your property, adding to its value. The thickness of the insulation can vary depending on which EWI system you choose. Typically, EWI will add around 100mm to your house. It provides a waterproof, protective barrier against penetrating damp.

Energy bill savings per year: £465

EWI comes with a 25 year guarantee

Installation typically takes 2-3 weeks depending on the weather


Internal wall insulation (IWI)
Installation of IWI involves the attachment of a framework of wooden battens (50mm deep) to the wall, and the space between the battens is filled with insulation material to keep your property warm. All wall fittings, radiators, sockets, and skirting will temporarily need to be removed.

Energy bill savings per year: £465

IWI comes with a 25 year guarantee

Installation usually takes between 3-5 days depending on house size


Cavity wall insulation (CWI)
Cavity walls are formed by two walls of brickwork built close together, and between this insulation can be administered. Most homes built after 1920 have cavities, whereas older homes tend to have solid walls. There are many types of CWI for different property types, including mineral wool, bead, or foam. Some CWI materials may not be suitable for every cavity therefore a specialist survey is required. It can take half a day to conduct the initial technical survey.

Energy bill savings per year: £395

CWI comes with a 25 year guarantee

Installation takes half a day


Room in roof insulation (RIRI)
RIRI can make significant savings on your fuel bills as over 25% of the property’s heat is lost through the roof. If you use your loft as a living space then you need to make sure that all the walls and ceilings are insulated. RIRI requires the laying of 300mm of wool or similar insulation material within the residual space with insulation boards fitted to the walls, similar to IWI. The walls will be plastered over afterward.

Energy bill savings per year: up to £480 depending on the amount of pre-existing loft or roof insulation present

RIRI has a 25 year guarantee

Installation usually takes between 2-3 days depending on house size


Loft insulation (LI)
LI is an effective insulation measure that takes very little time to complete. It works as an insulator for decades.

Energy bill savings per year: up to £480 depending on the amount of pre-existing loft or roof insulation present

There is no mandatory requirement to issue a guarantee for loft insulation

Installation can take up to 1 day to complete


Solar photovoltaic panels (Solar PV)
The electricity produced by PV panels is renewable because it is produced only from the sun. This electricity can power any appliances that are switched on while the surplus is exported to the electricity grid or stored in a battery. You can use electricity only when you need it. When you don’t, you can also choose to sell it back to the grid. It usually requires two people to install the system.

Energy bill savings per year: Around £400

Solar PV has a 25 year guarantee

Installation can take up to 3 days


Underfloor insulation (UFI)
UFI stops any draughts coming up from the floor. This insulation requires someone to get underneath the floor to carry out the work, so enough space must be present to have this measure installed. Most homes with a suspended floor will have an access hatch somewhere, but this may be inaccessible due to flooring or other work carried out on your property. In this case we can create a small hatch usually under a cupboard or sofa. Netting will be installed to secure the insulation in place. If there is a basement or cellar, the ceiling will be boarded once the insulation is fitted.

Energy bill savings per year: £110

UFI has a 25 year guarantee

Installation usually takes a day

Air source heat pumps (ASHP)
An ASHP can provide all the heating and hot water you need. Most heat pumps do not require planning permission. An ASHP takes the air from around your home and converts it into fuel to heat your home and hot water.

Energy bill savings per year: this depends completely on your property type and pre-existing heating system

ASHP comes with a 5 year warranty on the unit and a lifetime warranty on the cylinder

It can take between 2-5 days to fit your ASHP depending on the complexity of the install

Local authorities deliver funding in different ways so it is best to ask us or your local council what is available.

You can also look on the government’s website to learn more about energy efficiency funding they offer households.


Local councils we are currently working with…

The current methods of funding that we are helping to deliver are LAD and HUG.

Improveasy is working directly with the following councils:

Cheshire East Council – HUG

Cheshire West and Chester Council – HUG

Warrington Borough Council – HUG

South Lakeland District Council – LAD/ HUG

Barrow Borough Council – LAD/ HUG

We won contracts to offer fully funded home upgrades to eligible residents. These measures include heating, solar PV, and insulation, so please contact us or look at the above links to check your eligibility!

Cheshire East, Cheshire West & Chester, or Warrington: 0800 058 4240

South Lakeland or Barrow: 0800 058 4357

Please visit the council websites to find out more:

South Lakeland and Barrow – Cumbria

Cheshire East, Cheshire West & Chester, and Warrington – Cheshire EastCheshire West

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