Roof Insulation Grants & VAT Relief 2025: Complete UK Guide for Birmingham Homeowners
TL;DR: Birmingham homeowners can access up to £30,000 through the Warm Homes Plan, plus ECO4 and GBIS grants for roof insulation. Zero-rated VAT on installation saves 20% until March 2027. If your home is EPC D or below and household income under £31,000, you likely qualify.
Roof Insulation Grants & VAT Relief 2025: Complete UK Guide for Birmingham Homeowners
Up to £30,000 is available right now for energy-saving upgrades through the Warm Homes Plan , alongside ECO4 and Great British Insulation Scheme funding. Plus, zero-rated VAT applies to the installation of certain specified energy-saving materials until 31 March 2027, saving Birmingham homeowners 20% on installation costs.
Quick-Look Table: 2025 Insulation Funding
| Scheme | Grant Max | Runs Until | Key Eligibility | |--------|-----------|------------|-----------------| | ECO4 | £15,000 | March 2026 | Income <£31k, EPC D-G | | GBIS | £7,500 avg | March 2026 | Council tax A-D, EPC below D | | Warm Homes Plan | £30,000 total | 2025-2028 | Low income, EPC D-G | | VAT Relief | 20% saving | March 2027 | All properties |
ECO4 Explained (2022-2026)
The Energy Company Obligation (ECO4) continues as the flagship insulation grant scheme. Both the ECO4 and the GBIS scheme are accepting applicants until March 2026, but it is advised to apply sooner than later.
Eligibility centres on:
- Household income below £31,000
- EPC rating D to G
- Receipt of qualifying benefits (Universal Credit, Pension Credit, etc.)
- TrustMark installer required
The scheme takes a whole-house approach, potentially covering loft insulation, cavity wall insulation, and other efficiency measures. Working with professional roofers in Birmingham ensures your application meets all requirements.
Great British Insulation Scheme (GBIS)
Previously known as ECO+, GBIS offers more flexible support. You can be a homeowner, landlord or tenant (either renting privately or from a housing association). The scheme focuses on single insulation measures per household.
Key differences from ECO4:
- Broader eligibility through council tax bands A-D (England)
- No strict income threshold for some routes
- EPC D or below required
- Simpler application process
Birmingham residents in B postcodes can check eligibility through energy suppliers or the government helpline: 0800 098 7950.
Warm Homes Plan Grants (Budget 2025)
The new Warm Homes: Local Grant launches April 2025, offering the most generous support yet. Homeowners can receive up to £30,000, split between energy efficiency upgrades and low-carbon heating solutions.
The funding breaks down as:
- £15,000 for energy performance upgrades (insulation, draught-proofing, glazing)
- £15,000 for low-carbon heating systems
Birmingham City Council will administer applications locally. Priority goes to households in the lowest income deciles or receiving means-tested benefits.
Zero-Rated VAT on Roof Insulation (to Mar 2027)
Here's where it gets even better. From 1 April 2022, the zero-rate of VAT (0%) applies to the installation of ESM with respect to residential accommodation. The VAT rate will revert back to 5% on 31 March 2027 .
VAT Savings Example
| Job Value | VAT @ 20% | VAT @ 0% | Your Saving | |-----------|-----------|----------|-------------| | £4,000 | £800 | £0 | £800 | | £8,000 | £1,600 | £0 | £1,600 |
This applies to supply AND installation when done together. Materials only remain standard-rated at 20%.
Eligibility Checklist
✓ Property requirements:
- EPC rating D or below (some schemes E-G only)
- Owner-occupied or private rental
- Existing insulation below 100mm (for top-ups)
- Condensation issues present – ensure proper roof ventilation
✓ Personal criteria (meet one):
- Household income under £31,000
- Council tax bands A-D
- Receiving qualifying benefits:
- Universal Credit
- Pension Credit (Guarantee or Savings)
- Income Support
- Housing Benefit
- Working/Child Tax Credits
- Jobseeker's Allowance
- Employment Support Allowance
✓ Birmingham-specific:
- B postcode area covered
- Local authority participation confirmed
How to Apply in 5 Simple Steps
- Online eligibility checker - Use government or energy supplier tools to confirm qualification
- Energy assessment - Book EPC if needed (many councils offer free assessments)
- Get TrustMark quotes - Contact approved installers like JDowd for professional installation
- Scheme approval - Submit application through relevant route (Ofgem/local authority)
- Installation & sign-off - Work completed, inspected, and certified
Most Birmingham homeowners receive approval within 4-6 weeks. NFRC-certified contractors handle all paperwork, making the process straightforward.
Can You Combine Grants with a New Roof?
Yes! Many Birmingham properties need both insulation upgrades and roof repairs. If you have a contract to build an extension and sometime after the work has commenced, the homeowner separately asks you to install thermostatic valves, this is a separate supply. This principle allows combining grant-funded insulation with self-funded roof work.
Options include:
- ECO4 grant for insulation + private funding for roof replacement
- Zero-rated VAT applies to the insulation element
- Coordinated installation reduces disruption
- Single contractor manages entire project
For properties needing roof repairs Birmingham, addressing both issues together maximises efficiency and savings.
Case Study: Sutton Coldfield Loft Upgrade (£0 Up-Front)
Mrs Thompson's 1930s semi-detached home in Sutton Coldfield achieved remarkable results:
Before: EPC rating F, minimal loft insulation, annual heating bills £1,870 Grant secured: ECO4 funding £11,400 Work completed: 270mm mineral wool insulation, vapour barriers, ventilation upgrades After: EPC rating C, annual bills £1,400
Total savings: £470 per year, with zero up-front costs thanks to ECO4 and VAT relief.
FAQs
Do I repay the grant? No, all schemes mentioned provide non-repayable grants. Once approved and installed, the funding is yours.
Can landlords apply? Yes, GBIS explicitly welcomes landlord applications. Landlords will receive full funding for the first property and 50% funding for additional properties.
What if my income is just above £31,000? You may still qualify through council tax bands A-D under GBIS, or wait for the Warm Homes Plan which has a £36,000 threshold for some routes.
How long does approval take? Typically 4-6 weeks from application to approval, then 2-4 weeks for installation scheduling.
Ready to transform your Birmingham home's energy efficiency? With up to £30,000 in grants available and zero VAT until 2027, there's never been a better time. Contact an experienced roofer today for your free eligibility assessment and quote. Our team handles all grant paperwork, ensuring you maximise available funding whilst upgrading your home to modern standards. Before you decide, view case-study transformations to see the difference quality workmanship makes.