HUG2 specifically targets the fuel-poor households that other schemes struggle to reach — those off the gas grid, in older properties with very poor energy ratings. If this describes your home, HUG2 may be the most valuable grant available, potentially covering £20,000+ of insulation and heating work at no cost.
For a full overview of energy grants, see the Grants and Schemes hub.
The Off-Gas Grid Requirement
This is the distinguishing feature of HUG2. Properties on mains gas are excluded — the scheme targets homes using:
- Oil boilers
- LPG systems
- Electric storage heaters
- Solid fuel (coal, biomass)
- No central heating at all
Homes in rural areas and older properties in areas without gas infrastructure are the primary beneficiaries. If you live in a village, a listed building, or a rural property that has never been connected to the gas network, HUG2 is the programme most likely to help.
Full Eligibility Criteria
To qualify for HUG2 you need to meet all of the following:
| Criterion | Requirement |
|---|---|
| Geography | Must be in England |
| Heating type | Off mains gas grid |
| Property type | EPC rating E, F, or G |
| Income or benefits | Household income under £36,000 OR means-tested benefit receipt |
| Tenure | Owner-occupier or private renter (with landlord consent) |
Social housing tenants are not eligible for HUG2 — their landlord is expected to improve the property under separate social housing obligations.
Benefits that qualify
Any of the following automatically satisfies the income test:
- Universal Credit
- Pension Credit (any element)
- Income-based JSA or ESA
- Income Support
- Child Tax Credit or Working Tax Credit (household income under £36,000)
- Housing Benefit
What HUG2 Covers
HUG2 funds fabric improvements and low-carbon heating for homes that cannot use gas as an alternative. Eligible measures typically include:
| Measure | Notes |
|---|---|
| Solid wall insulation (internal or external) | Most common HUG2 measure for older stock |
| Underfloor insulation | Ground-floor rooms only |
| Loft and roof insulation | Required alongside wall measures where absent |
| Air source heat pump (ASHP) | Funded where gas boiler is not feasible |
| Ground source heat pump (GSHP) | Where land or borehole drilling is possible |
| Biomass boiler | In some cases, as transitional measure |
| Solar panels (PV) | In combination with other measures in some LAs |
| First-time central heating | For homes with no central heating at all |
| Flat roof insulation | Applicable to some older property types |
| Park home insulation | Specifically included as eligible dwelling type |
HUG2 does not fund gas boiler replacements, standalone double glazing, or cosmetic improvements.
Worked Example — Off-Gas Rural Property
Household profile: Detached stone cottage built 1930, no gas connection, oil boiler nearing end of life. EPC rating E. Household income: £28,000/year. One adult working, one adult not working.
- Eligible via income criterion (under £36,000)
- Assessment confirms: external solid wall insulation (~£14,000), loft insulation (~£1,800), air source heat pump (~£12,000)
- Total estimated measures: ~£27,800 — cost to household: £0
The same household in an urban area with gas access would not qualify for HUG2 — they would apply to ECO4 or GBIS instead.
Annual savings after improvement:
- Old oil boiler running cost: ~£1,900/year (at £1.00/litre)
- ASHP running cost at cap electricity rates: ~£850–£1,100/year (well-insulated home)
- Estimated saving: ~£800–£1,050/year on heating
Maximum Grant Values
HUG2 does not publish a single per-household cap — the actual support depends on your local authority’s HUG2 allocation and the measures your home needs. Individual grants of £15,000–£30,000 are common for properties requiring both insulation and a heat pump installation. In some cases, where ground source heat pumps or complex solid wall insulation is required, grants have exceeded £30,000.
There is no minimum grant value — if only one measure is needed (e.g. loft insulation on an otherwise well-insulated property), the grant may be smaller.
How to Apply
HUG2 is administered locally. There is no national application portal:
- Find your local council’s HUG2 delivery partner — each council has contracted with a scheme manager or installer. Search ‘[your council name] Home Upgrade Grant’ or call your council’s housing or sustainability team
- Initial eligibility check — an adviser verifies income/benefits and property EPC
- Home assessment — an approved surveyor visits and identifies eligible measures
- Eligibility is confirmed — income, EPC, and off-gas grid checks completed
- Work is scheduled — an approved HUG2 installer carries out the work, typically at no cost to the household
Timescales: Most households waited 4–14 weeks from application to installation start in 2024/25, depending on local demand and installer availability.
Warning: Do not pay any upfront fees to apply for HUG2. Scammers frequently impersonate government grant schemes — legitimate applications are free and initiated through your council.
What If Your Council Has No Remaining HUG2 Funding?
Not all local authorities had remaining HUG2 funding for 2025–26. If your council has exhausted its allocation:
- ECO4 successor scheme — if a successor energy obligation scheme is running, apply via your energy supplier or an approved installer
- Boiler Upgrade Scheme (BUS) — £7,500 grant toward an ASHP, open to all income levels (requires household contribution to installation cost)
- GBIS — for insulation only, if you meet general group or low income group criteria
- Nest Wales (if in Wales) or Warmer Homes Scotland (if in Scotland) — fully funded equivalents
HUG2 vs Other Schemes for Off-Gas Properties
| Scheme | Income test | Off-gas required | Measures | Household cost |
|---|---|---|---|---|
| HUG2 | Yes (under £36k or benefits) | Yes | Insulation + heat pump + more | Typically £0 |
| ECO4 | Benefits or LA Flex | No | Insulation + heat pump | Typically £0 |
| BUS | No | No | Heat pump only | Yes (gap payment) |
| GBIS | No (general group) | No | Insulation only | Varies |
Complaints and Quality Issues
If HUG2 work was carried out at your property and you are not satisfied:
- Contact the installer directly — all HUG2 installers are required to hold relevant TrustMark and MCS certification
- If unresolved, contact your local authority’s HUG2 delivery partner
- For persistent disputes, contact TrustMark (for installation quality) or the Heat Pump Association (for ASHP-specific issues)