The UK government has unveiled the Warm Homes Plan, a £15 billion programme aimed at upgrading the nation’s homes, cutting energy bills for millions of families, and tackling fuel poverty. The initiative represents the largest public investment in home upgrades in British history and is designed to benefit all types of households, with targeted support for low-income families, social housing residents, and renters.
The plan, announced by Prime Minister Keir Starmer and Energy Secretary Ed Miliband, aims to roll out upgrades to up to five million homes, potentially saving households hundreds of pounds on energy bills and lifting up to one million families out of fuel poverty by 2030.
The government has already taken steps to ease the cost-of-living crisis, including measures announced in the Budget to remove an average of £150 from energy bills starting in April. On top of this, around six million households will receive a £150 Warm Home Discount, bringing the total package to £300.
“Upgrading homes is one of the best ways to bring down bills for good,” said the government. “This plan is a vital next step in addressing long-term energy affordability issues.” Home insulation installations have fallen by over 90% between 2010 and 2024, leaving millions of households exposed to higher energy costs.
Demand for home clean energy technologies, such as solar panels and heat pumps, has reached record levels in the UK. While the costs of these products have declined, they remain out of reach for many households. The Warm Homes Plan seeks to bridge this gap with targeted support for low-income families and a universal offer for all households.
Homeowners will be able to apply for government-backed, low and zero-interest loans to install solar panels, batteries, and heat pumps. Low-income households and those in fuel poverty may receive full funding for installations, while landlords will be encouraged to upgrade rental properties to improve warmth and reduce bills.
Three pillars of the programme
Direct support for low-income families:
£5 billion of public investment will fund free home upgrades for eligible households.
Fully funded installations of solar panels and batteries, costing an average of £9,000–£12,000, will be provided where suitable.
Social housing residents may benefit from upgrades to entire streets, improving warmth and comfort across neighbourhoods.
Offer for all households:
Government-backed loans will enable widespread installation of solar panels, aiming to triple the number of homes with rooftop solar by 2030.
A £7,500 universal grant for heat pumps will be available, including the first offer for air-to-air heat pumps, which can also cool homes in summer.
All new homes will be built with solar panels by default under the Future Homes Standard, set for early 2026.
Protections for renters:
1.6 million children currently live in private accommodation with cold, damp, or mouldy conditions.
Updated protections will require landlords to ensure homes are safe, warm, and affordable, with support to make upgrades over several years.
An estimated 500,000 families could be lifted out of fuel poverty through these measures by 2030.
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