What does Insulation Cost and what Grant are Available

Written-by

Richard Burdett

Reviewed-by

Richard Burdett

Updated on

Nov 06, 2023

What does Insulation Cost and what Grant are Available

What is the cost of insulation?

Nearly everyone is feeling the effects of the cost of living crisis. Energy bills have shot up and more people than ever are looking for ways to mitigate the increasing cost of heating their homes. 
Insulating your home or business is the best starting point.

Below we look at some average prices and discuss the grants, funds and subsidies that may be available to you. 

The exact savings offered by insulation are dependent on a large range of factors, including:

• cost and quality of installation
• cost and quality of materials
• current level of insulation
• your home’s general energy efficiency
• how much you currently pay for energy
   

There are many cost benefits to having insulation installed in your property. The level of financial benefit that comes from insulation can vary depending on a number of factors. Some of the associated factors include the age of your property, what type of walls you have and the type of property you own. Having insulation installed could cut your energy bills by around £250 or even much more per year.

Around £140 worth of energy could be saved with cavity wall insulation and £150 by installing loft insulation. Loft insulation costs around £300 for installation and will pay for itself in two years with the savings that you make.  The recommended level of loft insulation is 270mm which is a lot, so you should first check whether you have any insulation currently installed in your loft. If you do have insulation in your loft but it is not up to the recommended 270mm, you could make further savings by topping up the thickness of the insulation for a very small cost.

If your loft is being used as a living space then you may be able to have your roof insulated instead. Some installers still offer free or discounted insulation to those who meet certain criteria. The figures below collected from the Energy Saving Trust website gives you a rough idea of how much you can expect to save.

The cost of DIY installations is, of course, is lower so if you're feeling handy you may want to pick up the insulation from a local builders merchant and install yourself. If you are considering this, make sure you adhere to all safety measures. There's a good guide for installing loft insulation on Wickes website. 

In the average UK home, having cavity wall insulation installed can decrease heat loss by 33%, potentially saving you up to £500 PA on your heating bills and prices can start from £700. 

More on pricing in the table below. 

Insulation Type	Approx Cost	Approx DIY Cost	Approx Annual Saving	Approx Payback Period
Cavity wall (270mm)	£450-500	-	Up to £140	Under 4 years
Solid wall internal	£5,500-£8,500	-	£460	25 years plus
Solid wall external	£9,400-£13,000	-	£490	40 years plus
Loft	£300	£250	Up to £180	2 years plus
Floor (timber floor)	£530	£100	£60	2 years (DIY)/13 years

Insulation Additional Costs

If you choose to insulate the floor of your loft (instead of its ceiling), the temperature in the loft will decrease dramatically. A consequence of this is that water tanks and pipes which are placed in the loft will be susceptible to freezing. It will therefore be necessary to insulate these, which will add to the total installation cost.

If your home is affected by damp and you wish to install insulation, it is necessary to eradicate the damp before starting work. This may involve a substantial extra cost if you need to hire a contractor to do this.

The best way to get an accurate quote for home or business insulation is to use our database of installers. 

What funds, schemes and subsidies are available?

There's a range of grants available to people living in England, Scotland, Wales and Northern Island. 

• Energy Company Obligation Scheme (ECO4)
• Great British Insulation Scheme  
• Home Upgrade Grant (HUG)
• Warm Homes Scotland
• Nest (available in Wales)
   

We'll take a quick look at each of these individually and give you some useful links for further info.

The Energy Company Obligation Scheme (ECO4)

The fourth iteration of the ECO scheme, ECO4 is a government incentive designed to help with the UK's fuel poverty issues and to lower carbon emissions. 
It's not a grant, the government have left it up to the big energy companies to choose which retrofit projects they fund, the level of funding they provide and the companies they work with. 
Set to run until March 2026, ECO4 is aimed to help households struggling with their energy bills in properties with a D-G energy rating. The government have stipulated a minimum number of homes band E, F or G (potentially even C) that have to be upgraded before the scheme ends. The energy company providing the funding may also ask you to contribute towards any measures taken, although in my experience, this is rare. 

ECO4 can offer up to £14,000 for insulation for those in low-income households. 
Insulation measures available for homeowners who meet the criteria for the scheme include:

• Cavity wall Insulation
• External Wall Insulation
• Internal Wall Insulation
• Flat Roof Insulation
• Loft Insulation
• Room in Roof Insulation
   

To get help with cavity or loft insulation through the ECO4 scheme, you must own your own property or have permission from the landlord, this could include housing association or permission from a management company. 
You must be a member of the Heat to Help Group (HTHG) by meeting the maximum income requirements and be in reciept of one of the following benefits:

• Income based Jobseekers Allowance 
• Income Support
• Child Tax Credit
• Universal Credit
• Working Tax Credit
• Housing Benefit
• Pension Credit
• Child Benefit
• Pension Guarantee
• Industrial Injuries Disability Benefit
• Severe Disability Allowance
• Mobility Support
• Carer's Allowance
• Personal Independence Allowance
   

You may be eligible if you're a member of HTHG and a recipient of Core Group 1 or 2 in England and Wales or the Core Group in Scotland. 

If you are living in social housing, paying under the market rate for the property, with an EPC band E to G you are limited to following measures:

• Central heating (if the property currently doesn't have a water based central heating system)
• Various insulation measures
• Renewable heating systems
• District heating connection
   

There may be some solutions available to households with an EPC band D under the Innovative Measures section, please see the Ofgem website for further info. 

It is worth noting that ECO4 measures can't be combined with other government incentives such as the Boiler Upgrade Scheme or the Warm Home Discount. 

ECO4 installers

The Energy companies are obligated to meet their targets and deliver the ECO4 scheme to homes in the UK. It's up to the energy companies to decide which companies they want to work with to complete the works. So, if you've been contacted by an installer offering measures under ECO4, do check they're on the on the TrustMark register.  

As well as being TrustMark registered, you're installer must have the accreditiation connected to the technology being installed:

• For renewable/microgeneration technology including solar panels and heat pumps the installer must be MCS certified. 
• To work with gas you'll need the installer to be Gas Safe Registered
• For oil boilers, installersd must be registered with the Oil Firing Technical Association, OFTEC.  
   

The best way to apply for ECO4 is by reaching out to one of the energy companies that are offering it. A quick assessment will follow to ascertain if you're applicable. The assessor will ask about your income, if you're in receipt of any benefits and follow up with questions about the energy efficiency of your property. It would help if you have an Energy Performance Certificate but if not, one will be organised for you. 
The Renewable Energy Hub can also help you find a reputable company, click here to contact us.

If you're living in a property with an EPC band D, Council tax band A-D and meet the maximum income requirements, you may be applicable for the Great British Insulation Scheme. 
Set up recently by the government as a sort of extension to the ECO4 scheme, £1 billion has been set aside to provide up to 75% of the costs of either loft insulation or cavity wall insulation. You'll have to stump up the 25% yourselves. 

Again, the best way to apply is to reach out to your energy provider. 

The Home Upgrade and Green Homes Grant

£2 billion was set aside for the Green Homes Grant in 2020 and although it was extended in 2022, it was scrapped shortly after. 
£150 million has been set aside for the Home Upgrade Grant (HUG). Set up in 2021 and expected to run until March 2025, HUG was planned to work in conjunction with phase three of the Green Homes Grant. 
HUG is designed to offer energy efficiency upgrades including insulation and clean heating to low-income households, help meet the UK's carbon emmision targets and to inject some cash into the industry after COVID lockdowns. 

The requirements for the grant are much the same as that of the ECO4 scheme, a homeowner with an EPC D-G, low income and in reciept of specific benefits. 

If you qualify for the Home Upgrade Grant, you could get 60%+ of the costs of your required insulation measures. Landlords could get up to £16,000 to improve the properties occupied by tennents that meet the requirements.  

The Nest Grant

Nest was set up to offer advice and free energy saving solutions to people in Wales. If eligable it offers a package of free home improvements including boiler upgrades (including heat pumps), central heating, insulation and solar panels. 
Give them a call to discuss your requirments and, providing you're eligible, they'll come up with a solution to improve your homes energy efficiency and lower your bills. 

You could be eligible for free home energy efficiency improvements if you meet all three conditions below:

• You own or privately rent your home (not from a local authority or housing association)
• Your home is energy inefficient and expensive to heat
• You or someone you live with receives a means tested benefit OR has a chronic respiratory, circulatory or mental health condition and an income below the defined thresholds
   

The means tested benefits that qualify are:

• Child Tax Credit (income below £16,105 a year)
• Council Tax Reduction (exemption and discount do not qualify on their own)
• Housing Benefit
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Income Support
• Pension Credit
• Universal Credit
• Working Tax Credit (income below £16,105 a year)
   

Warmer Homes Scotland

Set up by the Scottish Government, this solution offers funding and support to households struggling to cover their energy bills. Among other tech like renewables, cavity insulation, wall insulation and draft proofing solutions are offered. 
To apply for this one, simply contact Warmer Homes Scotland through the link or call 08088082282. They'll ask a few eligibility questions mostly based on your income, any benefits you're recieving and the energy efficiency of your property. They'll then organise a managing agent to visit your property and assess what measures are best suited. 
Providing the funds are approved and your happy with the solutions on offer, an approved installer will be assigned, paperwork completed and a date set for the works to take place. 

It's worth noting that there's also an interest free loan available if you don't tick all the eligibility boxes. The loan will be subject to a credit check and will include an administration fee. 

So, who is eligible (spoiler, it's much the same as the others)

• You must be a home owner or tenent of a private let. 
• Be a resident in Scotland over 16 years of age
• The property must be your main residence and you must have owned the property for at least 6 months
• The property must have a low energy rating, EPC rating D-G although this will be assessed by the managing agent. 
• The property must have a total floor area under 230m2
• The council tax band must be A-F
• For boiler upgrades, renewables and sometimes for insulation, the property must be off grid. 
   

Here's where it gets a bit more complicated. 
You must be over 75 with no central heating or in receipt of DS1500 or BASRiS certificate or a person who is in receipt of one of the following benefits:

• Adult Disability Payment
• Armed Forces Independence Payment
• Attendance Allowance
• Carer’s Allowance
• Constant Attendance Allowance
• Council Tax Reduction (exclusding 25% discount eg. students or single persons)
• Scottish Child Payment
• Child Disability Payment
• Child Tax Credit
• Disability Living Allowance
• Housing Benefit
• Income Support
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Industrial Injuries Disablement Benefits
• Pension Credit - Guarantee - you will not be eligible if you receive only
• Pension Credit - Savings
• Personal Independence Payment (PIP)
• Severe Disablement Allowance
• Universal Credit
• War Pensions Mobility Supplement
• Working Tax Credit
   

Conclusion:

So, to wrap this all up, it has got a bit repetitive.
Generally speaking, if you're low-income or on benefits and have a house with poor energy efficiency then it's likely there's a grant out there for you that can cover most, if not all of the expenses involved with insulating your home.  
Grab an Energy Performance Certificate (EPC), make sure you've read the above and reach out to the relevent party.