Home Heat Pump Guide

Local Authority Heat Pump Grants: Find Schemes in Your Area

Beyond the national Boiler Upgrade Scheme, many local councils across the UK run their own heat pump grant programmes. These local authority schemes can provide additional funding on top of the BUS grant, and in some cases, they offer fully funded installations for eligible households.

The challenge is that local authority grants vary enormously by area. What is available in Manchester differs from what is on offer in Bristol or Newcastle. This guide explains how to find local schemes, gives examples of what councils are offering, and shows you how to maximise your total funding.

Why Do Local Authority Grants Exist?

Local councils have their own climate and fuel poverty targets. Many have declared climate emergencies and committed to reaching net zero before the national 2050 target. To meet these goals, councils use a combination of government funding and their own budgets to support residents with energy efficiency improvements, including heat pumps.

Local authority grants typically come from several sources:

  • Home Upgrade Grant (HUG): A government fund distributed through local authorities to help off-gas-grid homes in England improve energy efficiency
  • Local Authority Delivery (LAD) scheme: Government funding channelled through councils to support low-income households
  • Council climate budgets: Some councils allocate their own funds for green energy schemes
  • Combined authority funds: Metro mayors and combined authorities sometimes offer regional schemes
  • ECO4 local authority flex: Councils can refer households to the ECO4 scheme under flexible eligibility criteria

The Home Upgrade Grant (HUG)

The Home Upgrade Grant is one of the most significant local authority schemes. It targets homes that are not connected to the mains gas grid — properties that heat with oil, LPG, coal, or electric storage heaters.

HUG Key Details

  • Available in: England, delivered through local authorities
  • Targets: Off-gas-grid homes with low EPC ratings (D, E, F, or G)
  • Household income: Generally aimed at households with an income below £36,000
  • What it covers: Insulation, heat pumps, solar panels, and other energy efficiency measures
  • Cost to you: Typically nothing or a small contribution depending on the council's scheme rules
  • Funding per home: Up to £25,000 in some areas

HUG is particularly valuable because it can cover the full cost of a heat pump installation plus insulation — something the BUS grant alone cannot do. However, it is means-tested and only available to off-gas-grid properties.

ECO4 Local Authority Flex

The ECO4 scheme allows local authorities to refer households that do not meet the standard eligibility criteria but are considered to be living in fuel poverty or are vulnerable. This is known as "LA Flex" or "local authority flexible eligibility."

Under LA Flex, your council can declare you eligible for ECO4 funding based on criteria such as:

  • Low household income (thresholds vary by council)
  • Living in a fuel-poor area
  • Health conditions made worse by cold housing
  • Being in receipt of certain benefits not covered by standard ECO4 eligibility
  • Living in a property with a low EPC rating

If you have been turned down for ECO4 through the standard route, it is worth contacting your local council to ask about LA Flex eligibility.

Examples of Local Authority Schemes

To give you an idea of what is available, here are examples of local authority heat pump schemes that have been running across the UK. Note that availability changes regularly — always check current offerings with your council.

Greater Manchester

The Greater Manchester Combined Authority has run several retrofit programmes through its Green Homes Grant Local Authority Delivery scheme. Properties in eligible postcodes have received fully funded heat pump installations alongside insulation improvements. The scheme targets EPC D-G properties and low-income households.

Bristol and the West of England

The West of England Combined Authority has offered grants of up to £10,000 for heat pump installations in homes that are off the gas grid or have particularly poor energy efficiency. The scheme has been popular with rural properties on oil heating.

Cornwall

Cornwall Council has been particularly active in heat pump deployment, partly because of the high proportion of off-gas-grid homes in the county. Through HUG funding, eligible households have received fully funded heat pump installations along with insulation upgrades.

Nottingham

Nottingham City Council has run several area-based schemes targeting specific wards and estates. These have included heat pump installations as part of whole-house retrofit packages for low-income households.

Scottish Councils

In Scotland, local authorities work alongside Home Energy Scotland to deliver area-based schemes. Some Scottish councils offer additional top-up funding beyond the HES grant, particularly for properties in remote and rural areas where installation costs are higher.

How to Find Local Heat Pump Grants in Your Area

Finding local schemes requires a bit of research, as there is no single national database that lists every local authority grant. Here is how to find what is available near you:

Step 1: Check Your Council's Website

Go to your local authority's website and search for "energy grants," "home energy," "green homes," or "heat pump grants." Most councils that run schemes have a dedicated page explaining eligibility and how to apply.

Step 2: Contact Simple Energy Advice

The government's Simple Energy Advice service (simpleenergyadvice.org.uk) can tell you about national and local schemes available in your area. Enter your postcode and property details to see what funding you might qualify for.

Step 3: Call Home Energy Scotland (Scotland Only)

If you live in Scotland, call Home Energy Scotland on 0808 808 2282. They have a comprehensive view of all funding available in your area, including local authority top-ups.

Step 4: Ask Your Energy Supplier

Under the ECO4 scheme, energy suppliers must fund energy efficiency improvements. Your supplier may know about local delivery partners and schemes in your area.

Step 5: Ask MCS-Certified Installers

Local heat pump installers often have the best knowledge of available local grants because they deal with multiple schemes daily. Get quotes from local installers and ask them what funding is available in your area.

Step 6: Contact Your Local Citizens Advice

Citizens Advice bureaux keep up-to-date information on local energy schemes and can help you understand what you qualify for.

Can You Combine Local Authority Grants with the BUS Grant?

This is one of the most important questions, and the answer is generally positive. In many cases, you can combine local authority funding with the BUS grant, which means your total funding could exceed £7,500.

However, there are rules:

  • BUS + local top-up grants: Generally allowed. Some councils offer additional grants of £1,000 to £5,000 on top of the BUS grant
  • BUS + HUG: You typically cannot receive both, as HUG is designed as a standalone scheme for off-gas-grid properties
  • BUS + ECO4: You cannot combine these for the same measure
  • HUG + ECO4 LA Flex: These can sometimes be combined, depending on the local authority's delivery model

Always ask your council specifically whether their scheme can be combined with the BUS grant. The best-case scenario is a BUS grant of £7,500 plus a local top-up of £2,000 to £5,000, bringing your total funding to over £10,000.

Tips for Accessing Local Authority Grants

  • Act quickly. Local authority schemes often have limited budgets and close when funding runs out. If you hear about a scheme, apply as soon as possible
  • Check eligibility carefully. Many local schemes are means-tested or targeted at specific property types. Read the eligibility criteria before applying
  • Get your EPC done. Most schemes require a valid EPC. If you do not have one, get one before applying — it costs around £60 to £120
  • Keep checking. New funding rounds are announced regularly. Just because nothing is available now does not mean nothing will be available in three months' time
  • Be prepared. Have your property details, household income information, and any benefit entitlements ready when you apply

What If There Is No Local Scheme in My Area?

Not every council runs a heat pump grant scheme. If there is nothing available locally, you still have several options:

  • The BUS grant of £7,500 is available nationally in England and Wales
  • Home Energy Scotland offers up to £15,000 in grants and loans in Scotland
  • The ECO4 scheme is available across Great Britain for eligible low-income households
  • Alternative funding options such as green loans and manufacturer finance schemes can help bridge the gap

See our guide to grant amounts for a full breakdown of what you could receive.

Frequently Asked Questions

How do I find out if my council offers heat pump grants?

Check your council's website, contact their housing or energy team directly, or use the Simple Energy Advice service. Local MCS-certified installers are also a good source of information about available local schemes.

Can I get a local authority grant on top of the BUS grant?

In many cases, yes. Some councils offer top-up grants of £1,000 to £5,000 that can be combined with the BUS grant. Always check with your specific council, as rules vary.

Are local authority heat pump grants means-tested?

Many are, particularly those funded through HUG or ECO4 LA Flex. Income thresholds vary by council but are typically set at around £31,000 to £36,000 household income. Some schemes are available regardless of income.

What is the Home Upgrade Grant?

HUG is a government fund distributed through local councils to help off-gas-grid homes improve energy efficiency. It can cover the full cost of a heat pump installation plus insulation for eligible households.

Do local authority grants cover the full cost?

Some do, particularly for low-income households. Others provide partial funding that can be combined with the BUS grant. The amount varies significantly between councils and schemes.

How long do local authority schemes last?

Most run for a fixed period — typically one to three years — depending on the funding allocation. Schemes can close early if the budget is used up, so apply promptly when you find an eligible scheme.

Ready to explore your options? Start with our complete guide to UK heat pump grants, then get free quotes from MCS-certified installers who can advise on local funding. You can also use our heat pump calculator to estimate your total costs after grants.