Warm Homes Local Grant income threshold: £36,000, or after housing costs

Two tests, and you only need to pass one of them

The income pathway is the third of the three ways a household can count as low income for the Warm Homes: Local Grant. It exists for households that neither live in an eligible postcode nor receive a listed means-tested benefit.

It has two tests:

1. The gross test. Combined gross household income of £36,000 a year or less.
2. The after-housing-costs test. For households over £36,000, income after tax and after rent or mortgage payments below the limit for the household’s size and make-up.

The after-housing-costs route exists because the same gross income leaves very different amounts to live on depending on housing costs and family size. A single parent with four children renting privately can be in fuel poverty on an income that would be comfortable for a couple with no children and no mortgage.

The gross test, step by step

Add up the gross annual income, before tax and deductions, of every adult in the household, with two exceptions: adults in full-time education and lodgers. Include rent a lodger pays you. Leave out these disability benefits:

• Attendance Allowance
• Disability Living Allowance
• Personal Independence Payment
• Armed Forces Independence Payment
• Exceptionally Severe Disablement Allowance
• Constant Attendance Allowance
• Industrial Injuries Disablement Benefit

If the total is £36,000 or less, the household meets the income pathway. The home still needs to pass the property rules: England, privately owned or rented, and EPC D to G.

The after-housing-costs limits

These are the maximum after-housing-costs incomes in the policy guidance. Work out net income (after tax), subtract annual rent or mortgage payments, and compare.

Household	Maximum after-housing-costs income
1 adult	£20,000
1 adult + 1 dependant	£20,000
1 adult + 2 dependants	£20,000
1 adult + 3 dependants	£23,600
1 adult + 4 dependants	£27,600
1 adult + 5 dependants	£31,600
2 adults	£20,000
2 adults + 1 dependant	£24,000
2 adults + 2 dependants	£28,000
2 adults + 3 dependants	£32,000
2 adults + 4 dependants	£36,000
2 adults + 5 dependants	£40,000

Housing costs mean rent or mortgage only. Council tax, energy bills and ground rent are not deducted.

Illustrative example: when the second test rescues an application

An illustrative example, using only the published thresholds. A couple with two children has a gross income a little above £36,000, so the gross test fails. Their limit after housing costs is £28,000. If their net income minus their mortgage payments comes to less than £28,000, they meet the income pathway after all. If it comes to more, they would need an eligible postcode or a listed benefit instead. Put your own figures into the calculator on this page to see which side of the line you fall.

What the council will ask for

The guidance is clear that councils must carry out robust checks and that self-declaration is not acceptable. Expect to provide some of the following for each adult whose income counts:

• recent payslips or an employer’s letter
• a pension statement
• self-assessment figures if self-employed
• bank statements
• rent or mortgage statements, if you are using the after-housing-costs test

Councils can use their own data, such as council tax reduction records, to spot households likely to qualify, but neighbourhood-level estimates (the kind of data that predicts incomes by area) cannot be used to verify an individual household’s income unless the tool assesses that household directly.

A digital income check is on the way

DESNZ’s delivery guidance (July 2026) describes an Income Verification Tool that checks, in the background, whether a household is under £36,000, receives a means-tested benefit or lives in an eligible postcode, using DWP and HMRC data. It was expected to arrive alongside a wider government home-upgrade advice service in summer 2026. Applicants do not see the income calculation. Councils keep their manual routes for cases the tool cannot settle.

When income is close to the line

If your income sits just above £36,000, check the other two pathways before giving up:

• Postcode: 254,014 postcodes are on the eligible list, and living in one means no income check at all. Check yours.
• Benefits: a household with anyone receiving Pension Credit, Universal Credit or another listed benefit qualifies without the income test, so if you think you might be entitled to Pension Credit, it is worth checking before you apply.
• After housing costs: the calculator above takes a minute.

And if none of them fits, the grant is not the only route: see other options if you are not eligible.