Yes, you can get government grants to replace storage heaters in 2026. ECO4 can fund the full cost if you're on qualifying benefits, and the Boiler Upgrade Scheme offers £7,500 towards a heat pump. The Warm Homes: Local Grant may also cover replacement heating depending on your council. Your best route depends on your income, your EPC rating, and what heating system you want instead.
Why Households Are Replacing Storage Heaters in 2026
£1,800 a year. That's roughly what we see households with old storage heaters spending on electricity, and in some cases it's more.
Storage heaters made sense in the 1970s when Economy 7 tariffs were genuinely cheap overnight. The idea was simple: charge up bricks with cheap electricity while you sleep, release the heat during the day. But the gap between daytime and overnight electricity rates has narrowed dramatically since then. Most Economy 7 tariffs now charge 25p to 30p per kWh during the day and 12p to 15p overnight, according to Ofgem's Annex 9 tariff data. Compare that to gas at roughly 7p per kWh and you can see the problem.
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Older storage heaters dump most of their warmth by mid-afternoon, leaving the house cold in the evening when you actually need it. You end up running a plug-in fan heater at full daytime rates to compensate, which defeats the entire point. Modern storage heaters with better controls exist, but they still run on electricity, and electricity is still three to four times more expensive than gas per unit of heat.
So the push to replace them isn't just about comfort. It's about money. And in many cases, the government will help pay for the switch because storage heater homes tend to have poor EPC ratings, which is exactly who the current grant schemes are designed to help.
Which Government Grants Can Cover Storage Heater Replacement?
Three schemes are running right now that can help. They work differently, cover different things, and have different eligibility rules.
ECO4
This is the big one for storage heater households. ECO4 is an obligation scheme, meaning energy suppliers like British Gas, OVO, and EDF fund it rather than the Treasury. If you qualify, it can cover the full cost of removing your storage heaters and installing a replacement heating system, including a first-time central heating system with a gas boiler or, increasingly, an air source heat pump.
Full cost. No contribution from you.
The catch is eligibility. ECO4 targets low-income households on means-tested benefits, and your home needs an EPC rating of D, E, F, or G. We've covered the full ECO4 eligibility criteria in our free boiler scheme guide, but the short version is: if you're on Universal Credit, Pension Credit, Child Tax Credit, or a handful of other benefits, and your home has a poor EPC, you're likely eligible. ECO4 runs until December 2026, so there's still time, but the closer we get to the deadline the harder it is to get installations booked.
Boiler Upgrade Scheme
Different approach entirely. The BUS doesn't care about your income. It gives you a flat grant towards specific low-carbon heating systems: £7,500 for an air source heat pump, £7,500 for a ground source heat pump, or £2,500 for an air-to-air heat pump. The idea is to make heat pumps affordable for anyone, not just those on benefits.
For storage heater homes, this is interesting. A typical air source heat pump installation costs £8,000 to £14,000 depending on the property, so the £7,500 grant covers a big chunk. If your home is on electric heating already, you don't need to worry about removing a gas boiler or dealing with a gas supply, which actually simplifies the installation. We've written a full guide to heat pump installation if you want the detail on what's involved.
The BUS runs until March 2028 and is open to homeowners in England and Wales.
Warm Homes: Local Grant
This one's harder to pin down because it varies by council. The Warm Homes: Local Grant is a government-funded programme delivered through local authorities, and each council decides what measures to offer and who qualifies. Some councils prioritise replacing electric heating. Others focus on insulation. The amounts and eligibility criteria differ from one area to the next.
Worth checking, but don't rely on it as your primary route. Our Warm Homes: Local Grant guide explains how to find your council's scheme.
One scheme that's no longer available: the Great British Insulation Scheme closed in March 2026. It covered insulation rather than heating replacement, but we mention it because some guides online still reference it as current. It isn't.
Do You Qualify? Eligibility Explained for ECO4 and Warm Homes
Right, so this is where it gets specific.
ECO4 has two main tests. First, you need to be receiving a qualifying benefit. The list includes Universal Credit, Pension Credit, Income Support, income-based Jobseeker's Allowance, income-related ESA, Child Tax Credit (with income under £16,190), Working Tax Credit, and Housing Benefit. Second, your home needs an EPC rating of D or below. If you don't know your EPC rating, you can check it for free on the government's EPC register, or see our guide on EPC costs if you need a new assessment.
There's also a "flex" route. Some local authorities can refer households into ECO4 even without the standard benefit criteria, if you meet local vulnerability or low-income thresholds. This is how some working households on moderate incomes get in. It's inconsistent across the country, and honestly, whether you qualify through flex depends heavily on where you live and how proactive your council is.
The Boiler Upgrade Scheme is simpler.
You need to own your property (or be a landlord, though the rules tightened in 2024). Your home needs a valid EPC. You can't have received a previous BUS voucher for the same property. And the heating system you're installing must be fitted by an MCS-certified installer. No income test. No benefit requirement.
For the Warm Homes: Local Grant, eligibility varies by area. Most councils target households on low incomes or those living in energy-inefficient homes, but the specific criteria differ. Some councils use EPC ratings as a filter. Others use council tax bands. A few have their own application forms and waiting lists.
What Heating Systems Can You Get Instead of Storage Heaters?
This matters more than people think. The grant you qualify for partly determines what heating system you can get, and vice versa.
Air source heat pump. This is the most common replacement we see for storage heater homes. An ASHP extracts heat from outside air and delivers it through radiators or underfloor heating. It uses electricity, but roughly three units of heat for every one unit of electricity, which makes it far cheaper to run than storage heaters. Covered by both the BUS (£7,500 grant) and ECO4 (fully funded). A good option for most homes, though you'll need space for the outdoor unit and potentially new radiators. Our guide on whether heat pumps are worth it covers the real-world numbers.
First-time gas central heating. If your home has no gas supply but there's a gas main in the street, ECO4 can sometimes fund a full first-time central heating system, including the gas connection, boiler, radiators, and pipework. This is a big deal because installing gas central heating from scratch typically costs £3,000 to £5,000 privately. Not glamorous, not low-carbon, but it'll cut your heating bills roughly in half compared to storage heaters.
Air-to-air heat pump. Think of this as a high-efficiency version of a split-system air conditioner that also heats. The BUS offers £2,500 towards one. They're cheaper to install than air-to-water heat pumps but don't provide hot water, so you'd still need an immersion heater or separate system for that. Best suited to well-insulated smaller homes.
Beyond those three, some ECO4 installations include electric panel heaters with smart controls as a like-for-like upgrade, though this is less common and less impactful on bills.
How Much Could You Save After Replacing Your Storage Heaters?
Honestly, this one depends on your situation and we can't give you a single number that applies to everyone. But we can give you the ranges.
A household switching from old storage heaters to an air source heat pump typically saves £400 to £900 a year on heating costs, according to Energy Saving Trust modelling. The exact figure depends on your home's insulation, the size of the property, and how you use heating.
Switching to gas central heating saves more in pure running costs because gas is so much cheaper per unit than electricity. We see estimates of £500 to £1,100 a year, though that gap will likely narrow as gas prices are expected to rise relative to electricity over the coming decade. There's an environmental argument against installing new gas too, which is worth considering if you plan to stay in the home long-term.
Here's the bit most guides skip. Replacing your storage heaters also improves your EPC rating, often by one or two bands. That matters because a better EPC can increase your property value by 3% to 5% according to DESNZ research, and if you're a landlord, you'll need at least a C rating by 2030 under proposed Minimum Energy Efficiency Standards. A storage heater home sitting at band E or F gets a meaningful bump just from the heating upgrade alone, even before you touch the insulation.
And speaking of insulation, if your home has poor wall or loft insulation, fixing that alongside the heating upgrade makes a bigger difference than either measure alone. ECO4 can often bundle wall insulation and loft insulation into the same funded package.
How to Apply for a Grant to Replace Your Storage Heaters
So here's the practical bit.
For ECO4, you don't apply to the government directly. You either contact an ECO4-approved installer or go through a referral service. The installer assesses your home, checks your eligibility, and handles the paperwork with the energy supplier who funds the work. Some councils also make referrals into ECO4 through the flex route. The process typically takes 4 to 12 weeks from first contact to installation, though backlogs exist in some regions.
For the Boiler Upgrade Scheme, the process starts with getting quotes from MCS-certified heat pump installers. The installer applies for the BUS voucher on your behalf through Ofgem's online system. Once approved, the grant is deducted from your invoice, so you never handle the money directly. You'll need a valid EPC before the installer can apply.
For the Warm Homes: Local Grant, contact your local council's energy or housing team. Some councils have online application forms. Others require a phone call. Response times vary wildly. We've seen some councils process applications in two weeks and others take six months.
One tip: don't wait for one scheme to reject you before trying another. Check your eligibility for all three at the same time. If you qualify for ECO4, that's usually the best route because it covers the full cost. If you don't qualify for ECO4 but want a heat pump, the BUS is your next best option. And it's always worth checking what your council offers through Warm Homes regardless.
Open our eligibility checker. Two minutes. You'll see exactly which schemes apply to your home.
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Grant amounts and eligibility criteria are based on publicly available government data and may change. Always verify current terms directly with the scheme provider.
Frequently asked questions
Can I get storage heaters replaced for free?
Yes, if you qualify for ECO4. The scheme can fund the full cost of removing storage heaters and installing replacement heating, including a first-time central heating system or a heat pump. You'll need to be on a qualifying benefit and have an EPC rating of D or below.
Do I need to be on benefits to get a grant?
Not necessarily. The Boiler Upgrade Scheme has no income test at all, and some councils offer Warm Homes: Local Grant funding based on EPC rating or council tax band rather than benefits. ECO4 does require qualifying benefits in most cases, though the flex route can sometimes include households on low incomes who don't receive standard means-tested benefits. It's worth checking all three schemes.
What if my home doesn't have a gas supply?
That actually opens up more options, not fewer. ECO4 can fund a first-time gas connection if there's a gas main nearby, or fund a heat pump installation. The BUS specifically targets heat pumps, which run on electricity and don't need gas at all. Many storage heater homes are off-gas, and the grant schemes are designed with exactly those properties in mind.
Will replacing storage heaters improve my EPC rating?
Almost always, yes. Typically by one or two bands.
Can I replace storage heaters if I rent my home?
You can't apply for the BUS yourself as a tenant, but your landlord can. For ECO4, tenants can be referred into the scheme, but the landlord needs to consent to the installation since it's their property. In practice, it helps to approach your landlord with the details of what's available, because many landlords don't realise the work could be fully funded. Private tenants in ECO4-eligible homes are a priority group, especially where the EPC is E, F, or G. Social housing tenants should contact their housing association directly, as many have their own ECO4 agreements with energy suppliers.