Insulation Grants

Let’s firstly get the bad news out of the way. Unlike loft and cavity insulation there are no full grants to have those cold external walls insulated and unlike in the Republic of Ireland there are no direct Government grants either for the “able to pay” home-owner looking for effective outside insulation.

However all is not doom and gloom and there are several other avenues of financial help and incentive available to the “able to pay” homeowner wishing to keep warmer whilst reducing the winter heating bill and as a result cutting their carbon footprint.

Below is a brief summary of the current help available for insulation of the external walls in a solid wall property but this does vary over time and with the economic conditions we face:

Government Subsidy

The Chancellor of the Exchequer does recognise the importance of cutting energy use and so has kindly levied a 5% vat rate on external insulation systems as opposed to the standard rate of 20%. This 12.5% subsidy is very welcome and on the Governments own figures this represents a saving of around £1000 to £1250 on an average 3 bed family home at current rates or £1200 to £1500 after January’s vat increase comes into effect.
For business premises the Government backs an interest free loan scheme for insulating inefficient buildings via the Carbon Trust although the terms and conditions are quite stiff to meet. It is best to contact the Carbon Trust directly via their website if you are thinking of using a thermal insulation system on the exterior walls of a commercial/industrial building.

Energy Company Insulation Grants

Whilst the Utility companies often deserve the bad press they frequently get it is important to remember that the grants for loft, cavity, boilers and hot water tanks are actually funded by the Energy Companies under a leagal obligation to save carbon emissions under what is known as the C.E.R.T scheme ie carbon emissions reduction scheme.

A lot of people wrongly believe that the Government fund these grants but in actual fact the money comes from a central fund that all the Energy companies pay into to avoid a heavy fine – up to 10% of global turnover – if they do not hit their targets for cutting emissions in the UK. As part of hitting their carbon targets some of these funds are earmarked for solid wall insulation but mainly in the Social Housing Sector and the “fuel poor” sector of society as these people are most in need of lower heating bills and a healthier, warmer living environment.

However, we can still access a small proportion of these funds for the private home owner who is deemed as “able to pay” and whilst not being as large an incentive as the vat subsidy we would be stupid to look a gift horse in the mouth, so to speak.

Local Council Help

You will probably be well aware of the current financial difficulties facing our local councils and of the need to cut costs and save expenditure and unfortunately this often means job cuts. Despite this position the Councils now have responsibility for the carbon footprint of their borough and under the Decent Homes Scheme they do have a pot of money they can use to upgrade and modernise homes in their local area.

Now obviously there are many and varied demands placed upon this limited fund but it can be worthwhile checking with your local Housing or Energy Officer at the Council to see if there are currently any incentives being offered for an insulation upgrade to properties in their borough. This could be a sizeable contribution to the cost or simply a small contributory payment but for the sake of a phone call it is well worth investigating.

Future Outlook for Exterior Insulation Grants

The Greener Homes Report published earlier this year by the Government lays out the future direction of carbon cutting measures in the UK until 2050 and the best ways to try and hit our obligations under the likes of the Kyoto Agreement on Climate Change.

We won’t bore you with an in depth summary of the 150 pages but the gist of the report is that external insulation to the 7 million solid wall homes in the UK is crucial to hitting our carbon reduction targets and this is a top priority along with solar photovoltaic panels.

The kick in the teeth for private home owners is there are no plans for any Government or Energy Company grants of any sizeable nature for the forseeable future. Rather the strategy is to enable home-owners to link a “green mortgage” to their property and spread the investment costs over a 25 to 30 year period with the annual repayments hopefully being slightly less than the anticipated heating bill savings and thereby incentivising people to take action.

The second plank in the Government’s plan is that they have instructed the Royal Institute of Chartered Surveyors (RICS) to devise a new valuation measure for properties with wall insulation and major renewable energy technology. This will be designed to reflect the lower running costs of a property in an increased valuation and is likely to be around a 5% premium.

This does sound a very good idea and will be far more of an incentive than the chance of taking out a low interest green mortgage.


With the Government having laid its cards on the table with a detailed plan for the next 40 years and with tough economic times ahead it can be fairly said that there really is no point in delaying fitting external insulation if you are in a postion to do so at the present time . It could be argued that it is highly unlikely that grants will be any better at all in the years ahead and by delaying taking action now then you will continue to pay higher winter heating bills and of course the work itself will only go up in price as the years go by.

External Wall Insulations can explain to you in simple terms what it needs to be done to get your home warm and energy efficient. We are just a call away.


Contact Us

External Wall Insulations

Address: 2nd Floor, Old Bank Chambers, 39 Station Road, Horley, Surrey, RH6 9HW

Tel: 01293 820350




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We would be happy to help and advise you on the type of external wall insulation that best meets your needs.

Our site surveys and advice are completely free of charge.

We cover all areas of Sussex: Bognor Regis, Horsham, Billingshurst, Brighton, Hove, Littlehampton, Arundel, Worthing, Henfield, Shoreham-by-Sea, East Preston, Hove, Fareham, Pulborough, Lancing, Epsom, Burgess Hill, Banstead, Rudtington, Crawley, Pound Hill, Woking,