Improving the energy efficiency of your home has never been more important. With rising energy prices and growing awareness of carbon emissions, homeowners across the UK are looking for ways to save money and stay warm. External Wall Insulation (EWI) is one of the most effective solutions and thanks to government-backed insulation grants, it’s now more affordable than ever.
In this guide, Penguin BM explains how EWI insulation grants work, who qualifies, how much you can save, and how to apply in 2025.
What Is External Wall Insulation (EWI)?
External Wall Insulation involves fixing insulation boards to the outside of a property and covering them with render or cladding.
Key benefits:
- Reduced heating bills (up to £500/year)
- Improved EPC rating
- Enhanced comfort and property value
👉 Learn more on our dedicated page: External Wall Insulation
What Are EWI Insulation Grants?
The UK government offers various financial support schemes to help households upgrade their insulation. These grants aim the UK government provides funding through energy efficiency schemes to help households upgrade their homes. These grants are designed to:
- Reduce energy costs
- Cut carbon emissions
- Support vulnerable households
While EWI is technically an eligible measure, availability depends on the specific programme and your property.
Available External Wall Insulation Grant Schemes [2025]
Great British Insulation Scheme (GBIS)
- Focuses on single insulation measures (loft, cavity, wall insulation).
- Available to homes in Council Tax bands A–D (England) or A–E (Scotland, Wales) with EPC D–G.
- EWI may be included depending on the assessment and funding allocation.
🔗 Great British Insulation Scheme – gov.uk
🔗 Ofgem – GBIS Guidance
Energy Company Obligation (ECO4)
- In force until March 2026.
- Requires energy suppliers to fund energy efficiency measures for low-income households.
- EWI is listed as a qualifying measure in ECO4 delivery guidance, though availability can vary.
🔗 Ofgem – ECO4 Delivery Guidance
Local Authority Delivery (LAD) & Home Upgrade Grant (HUG2)
- Delivered by local councils, focusing on low-income households in energy-inefficient homes.
- Some councils include EWI as an eligible measure.
Eligibility for EWI Grants
You may qualify for support if:
- Income – Household income below £31,000.
- EPC rating – Property rated E, F or G.
- Benefits – Receiving Universal Credit, Pension Credit, or similar.
- Ownership – Usually only available to homeowners.
- Council Tax band – A–D (England), A–E (Scotland/Wales).
- Heating system – Some schemes require upgrading boilers or heating alongside insulation.
- Regional rules – Local authority schemes may differ.
👉 Related: Cavity Wall Insulation | Solid Wall Insulation
Comparison of UK Insulation Grant Schemes
| Scheme | Who Qualifies? | Funding Level | Runs Until | Key Notes |
|---|---|---|---|---|
| GBIS (Great British Insulation Scheme) | Homes with EPC D–G Council Tax bands A–D (Eng), A–E (Sco/Wal) | Partial funding (50–75%) | March 2026 | Focus on single insulation measures (incl. EWI in some cases) |
| ECO4 (Energy Company Obligation) | Low-income households On qualifying benefits EPC E–G properties | Up to 100% for eligible households | March 2026 | Delivered by energy suppliers, includes EWI as an eligible measure |
| LAD & HUG2 (Local Authority Delivery / Home Upgrade Grant) | Low-income households Non-gas heated homes Council-led eligibility rules | Variable – often up to 100% | Varies by local authority | Funding differs regionally; some councils include EWI |
How Much Can You Save?
- Typical cost of EWI in the UK: £8,000–£15,000.
- With grants, many households cover 50–100% of costs.
- Annual savings: up to £500 on heating bills.
Want to know exactly how much material and cost applies to your home? 👉 Try our free EWI Insulation Calculator.
👉 More info: External Wall Insulation Costs in the UK 2025
👉 See: Costs & Savings Guide
How to Apply for an EWI Grant
Step 1: Check Eligibility
Use the official GBIS eligibility checker or consult your local council.
🔗 Apply for GBIS – gov.uk
Step 2: Book a Home Energy Assessment
This determines your EPC rating and which measures qualify.
Step 3: Submit Application
Applications can be made via energy suppliers, local councils, or approved installers.
Step 4: Approved Installation
Work must be carried out by TrustMark or PAS 2035-certified contractors.
How to Apply for the Great British Insulation Scheme (GBIS)
Step 1 – Check if you qualify
You may qualify if your home has an EPC rating of D–G, your household income is below £31,000, or if you receive at least one qualifying benefit. Council Tax bands A–D (England) and A–E (Scotland/Wales) are typically eligible.
👉 See official criteria: GBIS on gov.uk
Step 2 – Prepare your documents
- Proof of income (e.g. payslips, P60)
- Energy Performance Certificate (EPC)
- Benefit entitlement letters (if applicable)
- Council Tax bill
Step 3 – Contact your energy supplier or local council
Your energy supplier will arrange a home assessment to check which insulation measures (including EWI) are suitable. Local councils may also deliver grants under LAD or HUG2 schemes.
Step 4 – Book your installation
If approved, you’ll agree a date for works. Installation must be carried out by TrustMark/PAS 2035-certified installers to meet compliance standards.
Step 5 – Completion and certification
After installation, you’ll receive confirmation that the upgrade complies with grant requirements. The work will improve your EPC rating and cut your bills.
👉 Need help? Contact Penguin BM for guidance and full EWI installation support.
How to Apply for the ECO4 Scheme
Step 1 – Understand what ECO4 is
The Energy Company Obligation (ECO4) is a UK government scheme (running until March 2026) that requires larger energy suppliers to fund energy efficiency improvements for low-income and vulnerable households. External Wall Insulation (EWI) can be supported under ECO4, depending on eligibility.
👉 Official guidance: Ofgem – ECO4 Delivery Guidance
Step 2 – Check eligibility
You may qualify if you meet one or more of the following:
- Household income ≤ £31,000
- Property EPC rating of E, F or G
- Receiving qualifying benefits (Universal Credit, Pension Credit, Child Benefit, etc.)
- Living in social housing or private rental with poor efficiency
Step 3 – Contact an obligated energy supplier
Major energy suppliers (British Gas, EDF, E.ON, Octopus, etc.) are obligated under ECO4. You should contact your supplier directly or through an accredited installer. .
Step 4 – Home assessment
The supplier or installer arranges a home survey to confirm your property’s EPC, insulation needs and suitability for EWI. This determines the level of funding available.
Step 5 – Grant approval and installation
If approved, installation is scheduled. Work must be carried out by TrustMark or PAS 2035-certified installers to ensure compliance.
👉 Penguin BM can guide you through the process, from checking eligibility to final installation.
Is External Wall Insulation Worth It?
Yes, especially with grant support. Benefits include:
- Significant bill reduction
- Improved comfort
- Higher property value
- Contribution to UK carbon reduction goals
👉 See real projects: Before & After Guide
Case Study – How Grants Reduce EWI Costs
Property type: Semi-detached house, London
Full EWI cost: £12,000
Grant (ECO4): £9,000
Homeowner contribution: £3,000
Estimated annual energy savings: £550
Payback time reduced to just 5–6 years thanks to the ECO4 grant.
Why Choose Penguin BM?
- 📍 Based in London: 416 Ealing Rd, Wembley, HA0 1JQ
- 🛠 Specialists in Lakma and Tytan systems
- ✅ Full support: from eligibility checks to installation
- 💬 Local expertise, trusted by UK homeowners
EWI Grants FAQs
Do EWI insulation grants really exist in the UK?
Who qualifies for an EWI insulation grant?
Eligibility usually depends on household income (≤ £31k), EPC rating (E–G), benefits status, and property ownership. Local council rules may add further criteria.
How much of the cost can be covered?
Low-income households may get 100% funding. Others typically receive partial grants covering 50–75% of the installation cost.
Do grants cover flats and rented properties?
Some schemes allow landlords and social housing if tenants qualify, but most grants target homeowners. Flats may qualify only when whole blocks are upgraded.
How do I apply for an EWI grant?
Start with a Home Energy Efficiency Assessment. Then apply via your local council, energy supplier, or an approved installer like Penguin BM.
How long does the process take?
From eligibility check to completed installation, the process typically takes 2–3 months, depending on scheme backlog and contractor availability.