Phase two of the Home Upgrade Grant (HUG2) is a UK Government-funded scheme for properties in England that are not connected to the gas grid. £630 million has been allocated to Local Authorities to provide energy efficient upgrades and low carbon heating to eligible households between April 2023 and March 2025.
Aimed at tackling fuel poverty
The HUG2 scheme is targeted at both owner-occupiers and landlords with tenants who struggle to pay their heating bills and keep their homes warm in winter. It is part of the UK Government’s Sustainable Warmth strategy which seeks to ensure vulnerable people are not left behind in the transition to net zero.
To be eligible for grant funding, a household must have a low income, a property EPC rating between D and G, and not be connected to the gas grid.
Homeowners on a low income will not have to pay anything towards the cost of the upgrades. However, for private rented properties the landlord must contribute at least a third of the total cost of the upgrades, and social landlords must pay at least half of the total cost.
A range of upgrades can be funded
An assessment is carried out for each property to identify which measures will be most effective, but some of the upgrades that can be paid for by HUG2 include:
- Insulation and ventilation
- Low carbon heating systems, like air source heat pumps
- Efficient heating controls
- Energy-efficient hot water systems
- Solar PV panels
- Solar hot water
How to access funding for energy improvements
The HUG scheme is administered by Local Authorities, so landlords, tenants and homeowners in England should get in touch with their local council for information about the scheme in their area.
Property owners in England and Wales can apply to the Boiler Upgrade Scheme for a grant to cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.
Welsh householders who own or privately rent their homes could be eligible for Nest funded home energy efficiency improvements. Recipients must get a means-tested benefit or be living with specific health conditions, as well as living in the most energy inefficient properties.
For Northern Ireland, NI Energy Advice administers the Affordable Warmth Scheme which is aimed at reducing the effects of fuel poverty and energy inefficiency for lower income households.
Home Energy Scotland offers several funding options and has provided a funding finder tool to help identify the right scheme for a particular applicant.
