The UK Government has published its £15 billion Warm Homes Plan, describing it as the largest public investment in home upgrades in British history. The plan is intended to improve energy efficiency, reduce household energy bills and lift up to one million families out of fuel poverty by 2030.
The Warm Homes Plan will support upgrades to up to five million existing homes. According to the Government, upgrading homes is one of the most effective ways to reduce energy bills over the long term. Yet home insulation installations fell by more than 90% between 2010 and 2024, leaving millions of households exposed to higher energy costs. At the same time, demand for clean energy technologies such as solar panels and heat pumps is increasing, although upfront costs remain a barrier for many households.
The Warm Homes Plan combines targeted support for low-income households with a universal offer that allows all homeowners to install energy efficiency and clean energy technologies using Government-backed finance.
Prime Minister Keir Starmer said: “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain. 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 added: “This plan will ensure that millions of families feel the benefit of clean energy tech products in their homes over the coming years.”
Three pillars of delivery
The Warm Homes Plan is structured around three strands: direct support for low-income families; an offer for all households; and new protections for renters.
Under the first strand, low-income households will receive free upgrades, depending on what is suitable for their homes, backed by £5 billion of public investment. Fully funded installations could include solar panels and batteries, with the Government stating that the average cost of such installations currently ranges from £9,000 to £12,000. In social housing, upgrades may be delivered across entire streets or neighbourhoods.
The second strand provides a universal offer through Government-backed zero and low-interest loans for solar panels, batteries and heat pumps. The plan aims to triple the number of homes with solar panels by 2030. A £7,500 universal grant for heat pumps will continue, and will also apply to air-to-air heat pumps for the first time, which can provide cooling during warmer months.
The third strand of the Warm Homes Plan introduces new protections for renters. The Government states that 1.6 million children currently live in private rented homes affected by cold, damp or mould. New rules will place greater responsibility on landlords to ensure properties are safe, warm and affordable, with support to help landlords make upgrades over several years. The Government estimates these measures could lift around half a million families out of fuel poverty by the end of the decade.
Supported technologies
Home upgrades available through Government schemes will include solar photovoltaic and solar thermal panels, ground source and air source heat pumps, including air-to-air systems, home and heat batteries, smart controls, insulation for walls, floors and roofs, and draught proofing.
Low and zero-interest loans will apply to batteries and heat pumps as well as solar panels. The Government has said further detail on how households can access this finance will be published later this year, following engagement with the finance sector and consumer groups.
The plan also confirms that new homes will be required to include solar panels as standard under the Future Homes Standard, which is due to be implemented in early 2026. The Government has said more than one million homes were built with higher energy bills following the cancellation of the Zero Carbon Homes standard, leaving households vulnerable to recent energy price increases.
Delivering the plan A new Warm Homes Agency will be created to bring together existing delivery functions and simplify the process for households, from initial advice through to installation. Local mayors will take a lead role in delivering upgrades in their areas.
The Government estimates the plan will create 180,000 additional jobs in energy efficiency and clean heating by 2030. It has also set an ambition for at least 70% of heat pumps installed in the UK to be manufactured domestically and has committed to trebling investment in the heat pump supply chain to £90 million. In total, the plan is expected to unlock £38 billion of investment across the Parliament.
The construction industry has largely welcomed the Warm Homes Plan.
Adam Scorer, Chief Executive of National Energy Action, said: “People struggling in fuel poverty desperately need the Warm Homes Plan. Cheaper energy costs, efficient heating systems and homes that keep the warmth in are all essential for the plan to succeed. There is a lot of work to be done, but [this] publication and commitment to lift a million households out of fuel poverty is a welcome, landmark occasion.”