Thousands to gain from £8.4m boost to improve heating networks

24 October 2025

More than 8,000 residents across England and Wales are set to benefit from upgraded and more efficient heating systems after £8.4 million was awarded in the latest round of the government-backed Heat Network Efficiency Scheme (HNES).

The scheme, now in its ninth round, provides funding to improve the performance of older and less reliable heat networks — centralised systems that distribute heat from a single source to multiple homes and buildings. Around 500,000 people in the UK are connected to one of roughly 12,000 such networks, which are seen as a key part of efforts to cut energy costs and reduce carbon emissions.

The new funding brings the total number of residents supported by the HNES to more than 70,000. Seventeen projects will share over £7.3 million in capital grants, while more than £1 million will go towards studies designed to identify efficiency improvements.

Projects receiving support include upgrades in local authority and housing association buildings as well as private developments. In Doncaster, £1.7 million will help replace outdated heating units for nearly 830 residents, while Leicester City Council has been awarded £745,000 to improve the district energy scheme serving 432 homes. In London, boroughs including Camden and Islington will also receive funding to modernise ageing networks.

Private housing providers such as FirstPort Property Services and Michael Laurie Magar Ltd will also benefit, with projects in Battersea and Lewisham receiving more than £1 million and £560,000 respectively to enhance reliability and reduce emissions. Improvements will typically include new heat interface units, better insulation and upgraded control systems.

According to the scheme’s delivery partner Gemserv, the latest round of investment is expected to prevent more than 57,000 tonnes of carbon emissions each year once the works are complete — the equivalent of almost 500 one-way flights between London and New York.

Louise Singleton, HNES Programme Manager, says:

“We’re delighted to mark yet another milestone with the publication of our round 9 funding recipients. Once again, thousands more residents will benefit from a more reliable central heating system thanks to HNES support, while homes and buildings across England and Wales become more energy efficient and carbon friendly.”

The Heat Network Efficiency Scheme is managed by Gemserv on behalf of the Department for Energy Security and Net Zero, with technical and legal support from Ramboll, Turner & Townsend and Lux Nova.