In this article we cover:

  • The new fund being proposed for Northern Ireland homes
  • Will it replace the now defunct NI boiler replacement grant?
  • How the current Affordable Warmth Scheme works
  • Current grants and support available for insulation and heating upgrades
  • Who may qualify for help with energy-efficiency improvements
  • How to have your say before the consultation closes

Low-income households will benefit from whole house energy upgrades including solar PV, and eligibility criteria are to be loosened under plans to replace the Affordable Warmth Scheme.

The new Warm Healthy Homes Fund is intended to replace the existing Affordable Warmth Scheme in 2027 which currently provides grant support for eligible homeowners and private tenants to make homes warmer and cheaper to heat.

The Affordable Warmth Scheme is currently the main department for communities-backed energy-efficiency grant available to low-income households in the private sector. It’s delivered by the Northern Ireland Housing Executive and can help fund installing insulation, ventilation and draught-proofing systems, heating upgrades, replacement of single-glazed windows and, in some cases, solid wall insulation.

To qualify for Affordable Warmth support you need to live in Northern Ireland, own and occupy your home or rent privately and have a total annual gross household income below £23,000. Grant aid of up to £7,500 is available, rising to £10,000 where solid wall insulation is required.

The public consultation proposes that the total household
income threshold of the new Warm Healthy Homes Fund should be set at the rate of the National Living Wage which is currently £29,741.40, net of tax and national insurance, and that it should rise annually in line with the National Living Wage.

Whole house, fabric first

The proposed Warm Healthy Homes Fund would build on the Affordable Warmth Scheme but take a broader “whole-house” and “fabric-first” approach. This would mean dealing first with issues such as insulation, ventilation and heat loss before considering heating upgrades or renewable technologies.

“An assessment of the home will identify what measures the home will benefit from, using the whole-house approach and focusing on improving the fabric of the house first. Measures must be taken in priority order, with insulation, ventilation and draught proofing addressed before any other measures can be installed,” reads the consultation document.

“Solar photovoltaic (PV) systems and electrical energy (battery) storage and low carbon heating solutions, subject to the home technical assessment, will also be offered.”

The fund is a key part of the Warm Healthy Homes Strategy 2026–36, launched by minister Lyons in February to address fuel poverty among low-income households in the owner-occupier and private rented sectors.

The consultation is seeking views on revised eligibility criteria, increased grant limits, low-carbon and renewable technologies, stronger consumer protections and improved quality standards.

According to the consultation document, the scheme “will offer a range of retrofit options up to and including whole-house retrofits, subject to eligibility criteria, to improve energy efficiency.”

However, it is not intended to replace the boiler scheme that was axed in 2023: “The Warm Healthy Homes Strategy identifies repairs to broken boilers as an action for Discretionary Support.”

Fuel poverty campaigners and advice organisations welcomed the move.

Pat Austin, director of National Energy Action NI and chair of the Fuel Poverty Coalition Northern Ireland, said fuel poverty remains “at crisis level” in Northern Ireland.

She added: “Improving the energy efficiency of our homes is a lasting solution to reduce household energy bills and improve health and wellbeing.”

Nigel Brady, director of Bryson Energy, said the proposed fund offered “a sustainable approach to tackling fuel poverty” and urged people to help shape the scheme.

Nuala Toman, head of accessibility at Disability Action, said disabled people are “disproportionately impacted by fuel poverty, poor housing conditions and rising energy costs”.

She said the consultation was an opportunity to shape a system that better responds to the needs of disabled people and those most at risk of poverty and exclusion.Responses to the consultation will inform the final design of the Warm Healthy Homes Fund ahead of its launch.

The consultation is open now and runs for 12 weeks until 19 August 2026.

The department will also run two in-person and one online public consultation events, with details to follow.

Further energy upgrade grants available now

Support is also available through the Northern Ireland Sustainable Energy Programme (NISEP). NISEP offers a wide range of grants to help households and businesses improve energy efficiency, reduce bills and cut carbon emissions. Running from April 2026 to March 2027 (or until funds are exhausted), the programme is primarily targeted at those who fall outside other government support schemes but still need help upgrading inefficient homes.

NISEP is structured around three broad levels of support depending on household income:

  • Fully funded schemes for lower-income households
  • Part-funded (cashback) schemes for middle-income households
  • Insulation grants available more widely, including to those on higher incomes

In most cases, eligibility depends on gross household income, property type, and the condition of the existing heating system.

Fully funded support

The most generous NISEP schemes are aimed at lower-income owner-occupiers, typically with incomes below £28,000 (single) or £35,000 (families).

These schemes fully fund major upgrades, including:

  • Installation or replacement of central heating systems (oil, gas or electric)
  • Loft and cavity wall insulation
  • Smart heating controls and other efficiency improvements

They are targeted at homes that are hardest to heat – for example, properties with no central heating, outdated boilers (over 15 years old), or reliance on solid fuel or inefficient electric systems.

Some schemes go further, offering deep retrofit solutions, including solid wall insulation and whole-house upgrades. Others support the transition to low-carbon technologies, such as air source heat pumps and, in some cases, solar panels with battery storage, again fully funded for eligible households.

There is also a separate category of fully funded insulation-only schemes, with slightly higher income thresholds (up to £33,000–£40,000), focusing on simpler but highly effective measures like loft and cavity wall insulation.

Part-funded

For households on moderate incomes (typically up to £45,000–£50,000), NISEP offers part-funded or “cashback” schemes.

Under these:

  • Around 60 per cent of heating system costs are covered by the grant
  • The applicant pays the remaining 40 per cent
  • Insulation measures are often still provided at no cost

These schemes are open to both owner-occupiers and private tenants and are designed to support upgrades such as new central heating systems or replacing inefficient systems.

Insulation grants

For those who don’t qualify for the main schemes, NISEP provides insulation cashback offers regardless of income.

These typically cover:

  • 40 per cent of the cost of cavity wall or loft insulation
  • Grants capped at around £650 per measure (or up to £1,000 in some cases)

These schemes provide a fallback option for households seeking basic energy upgrades without meeting strict income thresholds.

However, funding is limited and schemes are often oversubscribed, meaning waiting lists are common. Properties must also pass a technical survey before approval. Grants are not available for new-build or self-build homes, and households cannot receive funding for the same measure if they have already received a grant for it within the past 15 years.