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The heat pump grant stays, a new loan scheme opens, and the £100 energy payment misses most Forest Row homes. The Budget's energy measures, checked.
The Chancellor delivered the Budget on Wednesday 28 October 2026. We have read the energy sections of the official Budget document and the government's own announcements, and checked each figure against gov.uk. Below is what was announced, when it starts, and what it means for homes in Forest Row. Where something has not been decided yet, we say so.
The heat pump grant is unchanged. The Budget says the government "will maintain the Boiler Upgrade Scheme at current funding levels of £400 million in 2027-28 and rising broadly in line with inflation thereafter" (Budget 2026). On gov.uk today, the grant is still £7,500 towards an Air Source or Ground Source Heat Pump, plus an extra £1,500 until March 2027 for homes heated by oil or LPG with no mains gas, making £9,000 (gov.uk). Reports before the Budget suggested the scheme could be cut. It was not.
The wider Warm Homes Plan loses £1 billion of capital grant. The energy department is moving money towards defence. The Budget says "the majority" of Warm Homes Plan funding for low-income households and social housing, delivered by mayors and councils, is protected. Separately, some money from the Warm Homes Fund is being moved into a new first-time buyer scheme.
The Warm Homes Loan Scheme opened on 27 October. This is a new government-backed loan for homeowners anywhere in the UK (gov.uk). The key facts:
What to weigh up: a loan is still debt. The government's own advice is to compare quotes and look at the total amount repayable, the loan length and any fees. Some lenders only work with particular installers, so check whether you are free to choose your own. Fabric first still applies: insulation and draught-proofing make any heat pump smaller and cheaper to run.
From 26 November 2026 until 31 December 2028, the government is suspending import tariffs on kerosene heating oil, to "support households that rely on heating oil", including many in rural areas.
What this means in practice: the UK tariff on imported heating kerosene is currently 4 percent, and only on oil from countries without a UK trade deal; imports from trade-deal partners already pay nothing (UK Trade Tariff). The government has not published an estimate of how much this will lower prices. Heating oil still has no price cap, so getting three quotes remains the best way to keep your costs down.
Households in council tax bands A to D in England will get a £100 Household Energy Payment from January 2027, delivered by councils through the council tax system. Your council will explain how the money reaches you.
The government says this covers around 80 percent of households in England. Forest Row is different. Official Valuation Office Agency figures (31 March 2026) show that in the statistical area that includes Forest Row, 1,300 of about 2,890 homes, around 45 percent, are in bands A to D. Across Wealden it is about 62 percent (Valuation Office Agency).
There is also £100 million for councils in England to give extra targeted help to households hit hardest by energy bills, "some of whom are in council tax bands above A-D". You can check your band on gov.uk.
Last week, MPs on the Energy Security and Net Zero Committee recommended moving existing policy costs off electricity and onto gas, which would make electricity cheaper to run a heat pump on. The Budget did not do that. It stops new costs being added, and will set budgets for these costs in 2027. Read our explainer on why electricity costs more than gas.
The government has appointed Andrew Pakes MP as its Co-operatives and Mutuals Champion, to represent the sector inside government and look for ways to help it grow. As a community energy co-operative, we will be following this closely.