The UK Government offers several schemes that can significantly reduce — or even eliminate entirely — the cost of loft insulation for eligible homeowners. In this guide, we explain the main schemes available in 2025, who qualifies, and how to find out whether you are eligible.
The Great British Insulation Scheme (GBIS)
The Great British Insulation Scheme (GBIS) is a government-backed programme that provides funding for home insulation improvements, including loft insulation, to eligible UK households. The scheme is delivered through energy suppliers and aims to improve the energy efficiency of the least efficient homes in the country.
Under GBIS, eligible households can receive a fully funded insulation installation at no cost, or a substantial contribution towards the cost. The scheme has two main eligibility routes:
- Group A (Income-based): Households receiving certain qualifying benefits (including Universal Credit, Pension Credit, Child Tax Credit, and others) are eligible regardless of their property's EPC rating. If you receive one of the qualifying benefits and live in a property that lacks adequate insulation, you may be entitled to free insulation.
- Group B (EPC-based): Properties with an EPC rating of D, E, F, or G that are not occupied by benefit recipients may also be eligible for funded insulation, subject to the energy supplier's available budget and local conditions. This is designed to bring the least efficient private homes up to a higher standard.
The Energy Company Obligation (ECO4)
ECO4 is the fourth phase of the Energy Company Obligation scheme, which requires large UK energy suppliers to fund energy efficiency improvements in low-income and vulnerable households. Loft insulation is one of the primary measures funded under ECO4.
To be eligible for ECO4 funded loft insulation, households typically need to:
- Be in receipt of a qualifying means-tested benefit, OR
- Have a low household income AND a low energy performance rating (EPC D or below), OR
- Be referred by a local authority or NHS body under the Local Authority Flex mechanism
ECO4 funding can cover the full cost of loft insulation for eligible households. The scheme runs through 2026 and has significant funding committed, so eligible households should apply as soon as possible.
Local Authority Flex
Local Authority Flex allows local councils to refer up to 50% of their ECO4 referrals to households that do not meet the standard income-based criteria but are considered to be in fuel poverty or at risk of it. This means that even if you do not receive qualifying benefits, you may still be eligible if your local council identifies you as being in fuel poverty.
Contact your local council's housing or energy efficiency team to ask whether they operate a Local Authority Flex referral scheme and whether you might qualify.
The Boiler Upgrade Scheme and Home Upgrade Grant
While primarily focused on heat pump installations, the Boiler Upgrade Scheme can indirectly benefit homeowners insulating their loft in preparation for a heat pump installation — as heat pumps work most efficiently in well-insulated homes. The Home Upgrade Grant (HUG) may also fund loft insulation as part of a broader package of improvements for off-gas properties.
How We Can Help
Navigating the various grant schemes can be confusing. As part of our free survey service, we will assess whether your household and property might be eligible for any funding schemes, explain the options clearly, and assist you with the application process where possible. Many of our customers are pleasantly surprised to discover they qualify for significant funding. Call us on 0330 223 7664 or complete our contact form to find out more.
What If You Don't Qualify for a Grant?
Even if you do not qualify for a grant scheme, loft insulation remains one of the best-value home improvements available. With typical payback periods of 2–5 years and potential annual savings of £200–£300 or more, privately-funded loft insulation delivers an excellent return on investment. We always provide competitive, transparent pricing and offer the full range of insulation options to suit different budgets.
