Home Upgrade Grant Phase 2

The Home Upgrade Grant Phase 2 (HUG2) is a new government grant scheme to fund energy-saving upgrades for residents with off-grid gas heating systems who are most likely to be impacted by the high cost of energy bills.

If your home was cold last winter and you struggled to pay your bills, you may be eligible.

This could help you to use less energy, reduce your carbon footprint and spend less on your energy bills.

Eligibility criteria

The Home Upgrade Grant Phase 2 (HUG2) is open to home-owners and private tenants in:

• homes not heated by mains gas which includes oil, coal, LPG or only electric heating
• households with a combined annual income of less than £36,000 OR receiving certain income-related means-tested benefits such as Universal Credit OR you live in an area of Index of Multiple Deprivation (IMD). You can check your postcode below:
  
• hard to heat homes – this is based on your home Energy Performance Certificate (EPC). You will be helped with this part of the assessment and receive a free EPC assessment if you do not have one already

Landlords who have four or fewer properties will be able to apply and will be required to contribute at least one third of the cost of the upgrades in addition to the funding provided. This will be agreed before work begins.

Types of improvements

You may be offered energy saving improvements to help cut your energy bills and reduce your carbon emissions.

These could include:

• insulation and ventilation upgrades (to keep you warm in winter and cool in summer)
• a low carbon heating system, such as an air source heat pump (which will mean upgrading any existing heating system)
• heating controls which make sure you only use heat when you need it
• an energy efficient hot water solution to keep your water warm for longer
• solar panels (PV) to generate electricity
• energy efficient lighting which is cheaper to run

A survey will identify what is suitable for your home and you’ll get a free updated EPC assessment.

How to apply

HUG2 funding is now open to private tenants, landlords and home-owners and will be available until March 2025.

You can apply online via HUG:

You can also apply by calling the Energy Saving Trust on 0808 1968255.

Staying safe from rogue traders

We have heard reports of rogue traders giving incorrect information or charging for substandard work, pretending to be working in relation to home energy improvement schemes. We are working with colleagues to report and refer this fraudulent activity.

We encourage you to research a scheme and check our advice for homeowners to ensure we are supporting the scheme if you have any concerns about what you’re being offered.

Whether you’re upgrading your home through a government scheme or with your own finances, we suggest that you:

• Check our website: certain households may be eligible for home upgrade work under HUG2 and other government schemes. Under those schemes, approved companies will contact homes directly to offer a building survey and check for eligibility, in partnership with the local authority. Check our advice for homeowners page if you’re not sure whether the scheme you’re being offered is legitimate.
• Research the company: look up any company information on websites and review sites, try to get a referral from a friend or local site and make sure you read any small print too so you’re clear on what you’re buying. Make sure you have a contract and make staged payments, preferably with credit cards if possible so you have some protection if things go wrong.
• Don’t be rushed: if someone is pressuring you to make a decision or you’re not able to take your time to consider the proposal, then it’s most likely a scam, and you should walk away.