What is the Home Upgrade Grant 2 (HUG 2)

Here is all of the information you need to know about the Home Upgrade Grant, which is now in its 2nd phase. Find out who is eligible, what’s included, and how you can apply.

The Home Upgrade Hub has entered its second phase. With government support, Local Authorities in England are now offering improvements to make homes in their area more energy-efficient and to install cleaner heating systems, specifically targeting low-income households. The initiative will provide up to £700 million in funding between 2023 and 2025.

Benefits of the Home Upgrade Grant 2 (HUG2)

The HUG2 offers numerous benefits to eligible households, including:

Save on energy bills: The HUG2 scheme helps homeowners significantly reduce their heating and cooling costs. This is particularly beneficial for households with limited income, helping them save money on energy expenses.

– Improved home comfort: Energy efficiency improvements like better insulation and modern heating systems make homes more comfortable to live in. They help maintain a consistent indoor temperature, reduce drafts, and improve overall air quality, which can be particularly beneficial during extreme weather conditions.

– Reduced carbon emissions: Minimising heat loss from homes helps conserve energy and contributes to lowering the country’s overall carbon footprint.


What you can find on this page

Who is eligible for the Home Upgrade Grant 2?

To be eligible for the HUG2, applicants must meet the following criteria:

  1. Off-Gas Grid: The property must not be connected to the mains gas grid.
  2. Income Threshold: The combined household income must be below £31,000 per year, or the household must be in a rural Local Authority (LA) areas. 
  3. EPC Rating: The property must have an Energy Performance Certificate (EPC) rating of D, E, F, or G.
  4. Local Participation: The local council must have opted into the HUG2 scheme.
  5. Means-tested benefits: At least one occupant of the property must be receiving at least one means-tested benefit.

The HUG 2 scheme targets homes in England that are not connected to the gas grid and have poor energy performance (rated D-G on the EPC scale). To see if you qualify for funding, use our online eligibility checker.

winter fuel payment

What's included as part of the Home Upgrade Grant 2?

HUG2 covers the cost of installing various energy efficiency measures in eligible homes. These improvements can include:


“The aim of the scheme is to improve the energy performance of EPC F-G homes to at least band D and EPC D-E homes to Band C where possible with a space heating demand consideration of 90 kWh/m²/year, to take homes out of fuel poverty and progress towards the UK’s legally binding commitment to reach Net Zero by 2050” Gov.uk

energy-efficient home improvements

Why is home insulation so important?

Insulation is a crucial component of any home, playing a vital role in maintaining a comfortable and energy-efficient living environment. It acts as a barrier against heat transfer, preventing excessive heat loss in the winter and unwanted heat gain in the summer. 

  • Poor wall insulation:  35-40% heat loss in homes
  • Poor loft insulation: 25% of heat is lost 
  • Uninsulated floors:  10-20% of heat

By effectively insulating a home, it will prevent heat from escaping and help regulate the temperature within a home, ensuring consistent comfort throughout the year.

This eco-friendly approach not only saves households money on their energy bills but also contributes to a greener environment by reducing carbon emissions

Percentage of heat lost through poorly insulated homes.

Check if you qualify for the Home Upgrade Grant 2

Do you want to check if you’re eligible for the Home Upgrade Grant 2? Just complete your details below to check whether you qualify for your home. 

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