The ‘Warm Homes Plan’ will deliver £15bn of public investment, roll out upgrades to up to 5 million homes that could save them hundreds on energy bills and help to lift up to a million families out of fuel poverty by 2030
The government believes that upgrading homes is a “vital next step” in making energy more affordable in the UK and the changes proposed in the Warm Homes Plan aim to make that next step achievable.
Home insulation installations fell by more than 90% between 2010 and 2024, and millions of households have paid higher energy bills as a result. Demand for sustainable solutions such as solar panels and heat pumps is growing, but for many pricing remains prohibitive. The Warm Homes Plan hopes to change that, through three key pillars.
The 3 pillars of the programme are:
- Direct support for low-income families: Low-income households will receive free of charge packages of upgrades, depending on what technologies are most suitable for their homes- backed by £5bn of public investment. For social housing residents, this could mean upgrades to entire streets at the same time, lowering bills for whole neighbourhoods.
- Increasing access to solar panels and heat pumps: The Warm Homes Plan includes a government-backed, zero and low interest loans programme to install solar panels, as well as a £7,500 universal grant for heat pumps. All new homes will have solar panels installed as default, per the Future Homes Standard. These “An Offer for Everyone” efforts will triple the number of homes with solar panels on their rooftops by 2030.
- New protections for renters: updated protections for renters and support for landlords to carry out necessary updates to make a property safe, warm and affordable will lift an estimated half a million families out of fuel poverty by 2030.
Prime minister, Keir Starmer, said:
“A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain.
“Today’s plan marks a turning point. It will help to slash energy costs and lift up to a million people out of fuel poverty.
“This is a government bearing down on the cost-of-living crisis. By driving bills down for good and upgrading millions of homes, we’re giving people the security and the fair shot they need to get on in life.”
Energy secretary Ed Miliband said:
“It is a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe.
“With this investment, we embark on a national project to turn the tide – waging war on fuel poverty and taking another step forward in tackling the affordability crisis for families throughout Britain.”
The industry welcomed the changes proposed in the Warm Homes Plan
David Weatherall, head of policy at BRE, said:
“We welcome the publication of the Warm Homes Plan and the government’s wider commitment to addressing fuel poverty and cutting carbon emissions. Helping poorer households and the coldest homes is a key step to decarbonising the built environment and improving living conditions. The 9% of homes that are EPC “E” or below account for 55% of the fuel poverty gap so efficient use of Warm Homes Plan funding is imperative.
“It is good to see the government moving forward with plans for Minimum Energy Efficiency Standards to improve conditions in the private rented sector where some of the coldest homes can be found.
“The Warm Homes Plan will offer low income households a range of suitable upgrades, including insulation, which is vital. For other households, advice and wider support should unlock action on the full range of measures that can improve their home: reducing energy demand, and delivering low cost, low carbon energy.
“We look forward to reading the full contents of the plan and how its proposals will be rolled out. In particular, we await detail on how the plan will give further support for sector innovation and addressing energy efficiency alongside other aspects of poor quality housing.
“It is essential that the plan is ambitious and sustainable to protect households, boost industry confidence and drive long-term progress.”
Ensuring the skills are in place to deliver efficient technologies is vital
Brian Berry, chief executive of the FMB, commented:
“The launch of the Government’s long awaited Warm Homes Plan is a critical step forward. A £15bn programme to cut bills and upgrade homes, with the ambition to improve up to five million properties with energy efficient upgrades by 2030, is something which the FMB welcomes, but we must keep sight on the remaining 25 million UK homes that will still need upgrading at some point to make them fit for the future. While this intervention from Government is needed, there must be incentives to get the industry moving, to make sure they are competent and skilled up to upgrade the majoprity of the UK’s homes.”
Berry continued: “Focussing on the now, the task will be delivery. The new Warm Homes Agency must get up and running quickly to coordinate programmes and consumer protections, with procurement routes that give SMEs a fair chance to win work. The creation of a new Workforce Taskforce is also an important step. If the plan is to succeed, the Government must give industry a genuinely stable pipeline: multi‑year funding, a clear timetable, and certainty over future standards and regulations. Consistency will be essential if small builders are to invest in skills.”
Stuart Fairlie, managing director at Elmhurst Energy, said:
“Lifting one million households out of fuel poverty by 2030 is an inspiring target and £15 billion towards making homes more energy efficient is a massive step in the right direction.
“This plan outlines a nuanced shift away from insulation and ‘fabric first’ retrofit strategies, towards much more plug-in PV, batteries and low carbon heat pumps. So it is good to see strong support for more training in the new technologies needed to decarbonise our homes.
“But our scrutiny will be on whether this plan also resolves the two big consumer protection issues which have bedevilled previous schemes: the need for properly independent assessment and retrofit coordination by fully qualified people, and the need for new EPCs (energy performance certificates) that are fit for purpose.
“Both of these must be priorities for the next stage of this ambitious plan.”
Chris Norbury, CEO, E.ON UK said:
“We welcome the Government’s action through the Warm Homes Plan and its clear focus on practical measures that will help households bring their energy bills down.
“We know from working with our own customers that the most effective way to cut bills is to enable people to generate and store their own energy and combine this with flexible time-of-use tariffs that reward smarter energy use. This approach puts control in customers’ hands, pounds in their pocket and turns the energy system into something that works for people, not the other way around.
“By taking strong action to make sure new energy works for everyone by combining access to innovative solutions with significant funding support, the Government is helping unlock real, everyday benefits. It means lower bills, simpler choices and a positive energy transition that people can feel directly in their homes and communities.”
Alethea Warrington, head of Heat & Energy at climate charity Possible, said:
“It’s great to see the government finally publishing the Warm Homes Plan to help tackle ongoing high energy bills and the crisis of people living in cold, damp homes.
“The government’s plans for more heat pumps, insulation and solar panels have the potential to transform home heating, slashing costs for households while reducing pressure on the grid and cutting emissions.
“This is a much needed step in the right direction. But we still need to go further and faster, with policies to ensure that no one is left behind or left struggling to choose between heating and eating. We need to ensure that everyone lives in a well-insulated, low-carbon home with low energy bills, and speed up ambition to get the UK off gas for good.”
