In short
- The Great British Insulation Scheme (GBIS) closed on 31 March 2026.
- ECO4, the energy supplier obligation, is scheduled to run until 31 December 2026, with no like-for-like successor supplier obligation.
- The Warm Homes Plan, published in January 2026, is the government's framework for future support, including the Warm Homes: Local Grant run through councils for eligible households.
- The National Audit Office reported serious defects in most EWI installed under ECO4 and GBIS; quality checks matter as much as funding.
What has changed
For years, most funded external wall insulation came through energy supplier schemes: the Energy Company Obligation, most recently ECO4, and the Great British Insulation Scheme. GBIS closed at the end of March 2026. ECO4 was extended and is scheduled to end on 31 December 2026.
The government's Warm Homes Plan, published on 21 January 2026, sets out funding for insulation, heat pumps, solar and other measures through grants and low or zero-interest loans. Support for low-income homeowners and private tenants includes the Warm Homes: Local Grant, delivered by participating councils.
Who may qualify
Eligibility varies by scheme but often depends on household income or benefits and the home's energy performance, typically EPC band D to G. Landlords of eligible rented homes may also qualify through local schemes. Check GOV.UK and your council for current rules, because they change.
Protecting yourself on funded work
The National Audit Office estimated that the large majority of homes that received external wall insulation under ECO4 and GBIS had issues needing remediation. If you use a funded scheme:
- make sure the installer is registered with the scheme and with TrustMark where required;
- ask how the work will be designed and assessed;
- ask how window sills, eaves, pipes and the base of the wall will be detailed;
- get the guarantee details in writing before work starts.
Paying privately
Many Surrey homeowners do not qualify for funding and pay privately. In that case, external wall insulation is often most cost-effective when combined with re-rendering you already need. Building Regulations may require insulation anyway when you re-render; see Building Regulations for rendering.
Paying for EWI without a grant
For households that do not qualify, options include combining EWI with necessary re-rendering to share costs, phasing the work by elevation where the design allows, and green mortgage or home-improvement finance products offered by some lenders. Get independent advice before taking on credit.
VAT on external wall insulation
Installed wall insulation in homes, including external wall insulation, is zero-rated for VAT from 1 May 2023 to 31 March 2027, and 5% from 1 April 2027, under HMRC VAT Notice 708/6. Render applied on its own, without insulation, is standard-rated. Check that a quote shows VAT correctly. Figures and sources are in our rendering statistics.
Questions people ask
Is there still a grant for external wall insulation?
ECO4 runs until the end of 2026 and the Warm Homes Plan provides support through schemes such as the Warm Homes: Local Grant. Eligibility is usually income-based.
Can landlords get EWI funding?
Some local schemes support privately rented homes with low-income tenants and poor EPC ratings. Check with your council.
Why do funded EWI jobs have so many problems?
The National Audit Office found widespread defects, often at junctions and detailing. Careful design and installation are essential.