UK Home Energy Policy Changes & Bill Support in 2025

The UK government, Ofgem and local authorities are updating rules and support to protect households from high prices while driving the switch to cleaner heating. Understanding these changes helps you claim the right funding, avoid overpaying and plan improvements for your home.

This guide summarises the key home energy policy changes and bill support available in 2025, including:

• Updates to the Ofgem energy price cap and standing charges
• New and extended grants for insulation and low-carbon heating
• Targeted help for low-income and vulnerable households
• How smart meters, tariffs and home upgrades can reduce your bills

1. Ofgem price cap & unit rates in 2025

The Ofgem price cap continues to limit the maximum price energy suppliers can charge per unit of gas and electricity for standard variable tariffs. It does not cap your total bill, but it does control:

• Unit rates (pence per kWh) for electricity and gas
• Daily standing charges

In 2025, Ofgem is refining how the cap is calculated to stabilise prices and reflect changing wholesale costs more accurately. The cap is reviewed regularly, so your direct debit may change across the year.

Because policy and wholesale markets can change quickly, it makes sense to review your tariff, usage and home efficiency at least once a year.

2. Grants and schemes for home energy upgrades in 2025

Several major schemes continue or expand in 2025 to help homeowners and eligible tenants improve insulation, upgrade heating and cut carbon emissions.

ECO4 & ECO+ (Energy Company Obligation)

The Energy Company Obligation (ECO4) requires larger suppliers to fund energy-saving measures in homes, especially where residents are on lower incomes or vulnerable. Depending on your circumstances, ECO4 can help with:

• Cavity wall, solid wall and loft insulation
• Replacement of old, inefficient boilers
• Low-carbon heating in some cases
• Draught proofing and basic energy-saving measures

ECO+ and related local schemes can extend support to households just above traditional benefit thresholds, targeting homes with poor EPC ratings (E, F or G) where improvements will make the biggest difference.

Great British Insulation Scheme (GBIS)

The Great British Insulation Scheme offers help with insulation for homes that are harder to heat or expensive to run. In 2025, GBIS continues to focus on:

• Loft and roof insulation
• Cavity and solid wall insulation
• Underfloor and room-in-roof insulation

Support is targeted at lower council tax bands and homes with weaker EPC ratings, but you do not always need to be on benefits to qualify.

Boiler Upgrade Scheme & heat pump incentives

The UK’s plan to cut carbon from home heating continues in 2025 with incentives to switch from old gas or oil boilers to low-carbon heating, such as air-source and ground-source heat pumps.

The Boiler Upgrade Scheme offers:

• Grants towards the cost of an air-source heat pump
• Higher grants for ground-source heat pumps
• Support for some biomass boiler installations in off-gas-grid homes

Eligibility depends on your current system, home efficiency and location. Many households will need basic insulation improvements first to get the biggest benefit from a new low-carbon system.

Local authority and regional schemes

Alongside national schemes, many councils run their own Local Authority Delivery (LAD) and Home Upgrade Grant programmes. These often focus on:

• Off-gas-grid properties
• Rural homes with high heating oil or LPG costs
• Properties with very low EPC ratings

Funding can cover a combination of insulation, new heating systems, solar panels and ventilation improvements.

3. Bill support & cost-of-living help in 2025

While many of the large, universal discounts from previous winters have ended, there is still targeted bill support for households that need it most.

Warm Home Discount

The Warm Home Discount provides a one-off credit on electricity bills for eligible low-income households over the winter period. In 2025 the scheme continues to be delivered through participating suppliers, with eligibility based on:

• Receiving certain income-related benefits
• Living in a property with higher heating needs

Some customers are enrolled automatically, while others need to apply directly via their supplier each year.

Cold weather and hardship support

Depending on government policy and local discretion in 2025, you may also be able to access:

• Cold Weather Payments (if re-activated and you meet the criteria)
• Household Support Fund grants distributed via local councils
• Charitable funds and supplier hardship schemes for customers in energy debt

Priority Services Register

If you are older, disabled or have a long-term health condition, you can join your supplier’s Priority Services Register. This is not a direct discount, but it does provide extra support such as:

• Advance notice of planned power cuts
• Priority in emergencies
• Accessible communications and meter reading support

4. Smart meters, tariffs & how policy is shaping your bill

Energy policy in 2025 continues to push for smarter, more flexible use of electricity. This is where smart meters and new tariff types come in.

Smart meters and time-of-use tariffs

Smart meters automatically send readings to your supplier and show you real-time usage. Combined with certain tariffs, they can help you:

• Access cheaper off-peak electricity rates for appliances like EV chargers or washing machines
• Monitor exactly how much different appliances cost to run
• Avoid estimated bills and surprise back-charges

Some suppliers are launching dynamic tariffs linked to wholesale prices, where rates change by the hour. These can suit households that are able to shift usage to off-peak times, but they are not right for everyone.

Prepayment customers

For prepayment meter users, regulation in 2025 continues the shift towards fairer standing charges and unit rates, aiming to ensure that pay-as-you-go customers are not disadvantaged compared with those paying by direct debit.

5. Improving your home’s Energy Performance Certificate (EPC)

Many policies and grants are now tied to your home’s Energy Performance Certificate (EPC) rating. A higher EPC usually means lower running costs and a more comfortable home.

Simple upgrades that often qualify for support

• Loft and cavity wall insulation – often the fastest way to cut heat loss
• Upgrading single-glazed windows or draughty doors
• Heating controls – thermostatic valves, smart thermostats and zoning
• Replacing very old boilers with modern condensing or low-carbon systems

Boosting your EPC rating can make you eligible for more schemes and higher grant levels, while improving comfort and reducing condensation and damp.

6. How to check what support you can claim in 2025

Because the rules around home energy policy and bill support change frequently, it can be difficult to know exactly which help you qualify for. Factors that matter include:

• Your household income and any benefits you receive
• Your home type, age and current EPC rating
• Your current heating system (gas, electric, oil, LPG, solid fuel)
• Whether you own or rent your home
• Your location and local authority

A short assessment can identify suitable schemes, estimated savings and the likely contribution you would need to make, if any. Many households are surprised to find they qualify for more help than they expected.

7. Practical steps to cut your home energy bills this year

While policy changes and grants can make a big difference, there are also simple, low-cost actions you can take right now to reduce your bills:

• Check your direct debit is based on an accurate annual usage, not an estimate.
• Submit regular meter readings if you do not yet have a smart meter.
• Lower your thermostat by 1°C where safe – this can cut heating use significantly.
• Fit draught excluders around doors and windows.
• Use LED bulbs and switch off appliances at the socket where possible.
• Review your tariff and compare options if you are out of contract.

Combine these quick wins with available grants and policy support, and you could substantially reduce your annual energy spend while making your home warmer and more future-proof.

8. Stay updated on UK home energy policy in 2025

Energy policy is evolving fast as the UK moves towards net zero. New funding rounds, eligibility rules and supplier offerings are announced throughout the year. To stay in control:

• Review your bills whenever Ofgem updates the price cap.
• Check for new local authority schemes in your area.
• Revisit your eligibility if your income or circumstances change.

If you want regular updates on changes that affect households – not businesses – and practical ways to keep your home warm for less, bookmark this page. We keep our guidance aligned with the latest policies, schemes and supplier offers across the UK.