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What Are the Retrofit Incentives for the UK? [Updated August 2025]

Here are the UK retrofit incentives as of August 2025, based on the most recent updates:

Boiler Upgrade Scheme (BUS)

  • Grants remain at £7,500 for air‑source and ground‑source heat pumps. A £5,000 grant is available for eligible biomass boilers (Find a Grant).
  • The scheme runs until 31 December 2027 in England and Wales (Find a Grant).
  • In April 2025, proposals opened to expand BUS to include air‑to‑air heat pumps, heat batteries, and leasing or hire‑purchase models (Energy Saving Trust).
  • A public consultation launched in July 2025 is assessing the inclusion of air‑to‑air heat pumps in the £7,500 grant. A decision is expected later in 2025 with possible implementation in 2026 (Homebuilding).
  • Planning permission rules were relaxed: installations within one metre of property boundaries usually no longer require planning permission. This reform boosted BUS applications by 54 % in H1 2025 compared to H1 2024 (Homebuilding).

Great British Insulation Scheme (GBIS)

  • GBIS continues, funded by £1 billion through March 2026, delivered alongside ECO4 (Wikipedia).
  • As of April 2025, around 63,400 homes have received measures via GBIS. Most common upgrades: cavity wall insulation (41 %), loft insulation (28 %), and heating controls (21 %) (Energy Saving Trust).
  • Eligible homes typically have EPC ratings D to G, and lie in council tax bands A‑D (A‑E in Scotland/Wales). Measures include cavity, loft, solid wall, floor, and room‑in‑roof insulation (Wikipedia).
  • Estimated energy bill savings remain at £300–£400 per year (Wikipedia).

Energy Company Obligation (ECO4)

  • ECO4 continues to support low‑income households with energy‑saving installations, including insulation, heating controls, and solar PV in some cases (Eco Energy Services).
  • It remains the central measure for low‑income and vulnerable households, working in tandem with GBIS.

Warm Homes Plan (WHP)

  • Confirmed in June 2025, the government has pledged £13.2 billion funding for its Warm Homes Plan (Celtic Dynamics, Energy Institute).
  • The plan aims to support upgrades—including insulation, heat pumps, and solar panels across 5 million homes over five years, and lift 1 million homes out of fuel poverty (Energy Saving Trust).
  • The first major package is expected this autumn 2025 (Energy Institute).

Consumer protections and communications

In August 2025, the Advertising Standards Authority (ASA) banned adverts from EDF and Aira for misleading claims about automatic eligibility for the £7,500 BUS grant without noting eligibility requirements (theguardian.com).

Aspecte offers a full-service property retrofit, inclusive of every part of a modern, sustainable home. If you want to know exactly how we can support you in this initiative, from solar panels to loft insulation, don’t hesitate to get in touch with us.

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    I lead the Property Services team at Aspect Group Services, bringing years of experience in construction and a practical approach to delivering high-quality work. My background in project management means I keep projects running smoothly, on time and to a high standard.

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