Families to see further energy bill savings with biggest homes upgrade plan in British history - Warm Homes Plan launched
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Government launches £15 billion Warm Homes Plan
to help millions of
families benefit from solar panels, batteries,
heat pumps and insulation that can cut energy bills.
A plan for all types of households; with targeted
interventions for those on low incomes; upgrades
for social housing; new protections for renters; and a
universal offer for all households to upgrade
homes if...Request free trial
Families across the country will see lower energy bills as a result of the Government's comprehensive plan to upgrade the nation's homes. The Warm Homes Plan will deliver £15 billion of public investment, rollout 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 has already taken immediate action on the cost of living at the Budget, taking an average of £150 of costs off energy bills from April. On top of this, around six million households will receive the £150 Warm Home Discount - a total package of £300. Upgrading homes is one of the best ways to bring down bills for good, and this Plan is a vital next step in addressing the long-term issue of energy affordability for the country. Home insulation installations fell by more than 90% between 2010 and 2024, and millions of households have paid higher energy bills as a result. The British people are currently showing record demand for home clean energy products like solar panels and heat pumps. The cost of these products continues to fall, but they are still out of reach for too many - and this plan will help bring these costs down so working people can benefit. The Warm Homes Plan targets help at low-income families, alongside a universal offer, to ensure that working families can feel the benefits of products that can cut their bills. Alongside this, the Plan will support consumer choice for all households, so people can choose the technologies that work for them as and when they want. Homeowners will be able to apply for government-backed, low and zero interest loans to install solar panels - unleashing a “rooftop revolution”. These loans will also be available for batteries and heat pumps, making it easier than ever for every home to access clean energy technologies that can lower bills. Low-income households and those in fuel poverty could receive support that would cover the full cost of having solar panels put on their rooftop, or insulation installed, alongside new rules to ensure landlords invest in upgrades to cut bills for renters and social tenants. 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 government's clean power mission is already delivering for the country, and this plan will ensure that millions of families feel the benefit of clean energy tech products in their homes over the coming years. The plan is backed by £15 billion government investment, including allocations for devolved governments in Scotland, Wales and Northern Ireland to ensure homes right across the country can benefit from these upgrades. It also includes common-sense measures to ensure that new homes are built cheaper to run, with solar panels as standard, with the Future Homes Standard to be implemented in early 2026. The plan - the biggest public investment in home upgrades in British history - turns the page on over a decade of failure by previous governments. More than a million homes were built with higher bills following the cancellation of the Zero Carbon Homes standard - leaving families exposed to the energy price spike after Russia's invasion of Ukraine. The three pillars of the programme are:
ENDS Notes to Editor: The Warm Homes Plan will also:
Home upgrades available under government schemes will include: solar panels (Photovoltaic and thermal), heat pumps (ground source, air source (including air to air)), home and heat batteries, smart controls, insulation (wall, floor, and roof) and draught proofing. These loans will also be available for batteries and heat pumps, making it easier than ever for every home to access clean energy technologies that can lower bills. We will set out more detail later this year on how consumers will be able to access low-interest loans, following further engagement with the finance sector and consumer groups. Adam Scorer, Chief Executive at 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 today's publication and commitment to lift a million households out of fuel poverty is a welcome, landmark occasion.” Charlie Nunn, CEO of Lloyds Banking Group, said: “At Lloyds Banking Group, we are committed to helping ensure that homes across the UK are warm, affordable and energy efficient. This will require sustained collaboration between government, industry and civil society, and I look forward to working together to mobilise the finance, innovation and partnerships needed to support more resilient and energy efficient homes.” Kate Bell, Assistant General Secretary of the TUC, and co-chair of the Warm Homes Taskforce, said:
Kirsty Britz, Head of Group Sustainability at NatWest Group, said: “We welcome the Government's announcement of the Warm Homes Plan, at a critical time for the UK's transition. Higher energy bills have made it difficult for people to keep themselves and their homes safe and warm. This investment will help unlock more finance and provide much needed support. We look forward to continuing our support for the UK's mission to adapt and grow in a changing world alongside the Government.” Greg Jackson, Founder of Octopus Energy, said: “The Warm Homes Plan is a really important step forward. Electrifying homes is the best way to cut bills for good and escape the yoyo of fossil fuel costs. “Solar panels can slash energy costs - and paired with a battery we get the electricity when we need it. Heat pumps can be cheaper to run, and with solar they're often dramatically cheaper. With the right finance, simpler rules and a big push from manufacturers, heat pumps will increasingly be the best solution for many homes - as they are in other countries like Sweden, Norway and Finland. “We still need to focus on getting electricity costs lower for everyone, building on the changes in the budget, but this plan sends a clear signal that the future of home heating is electric.” Chris O'Shea, CEO of Centrica, said: “As the UK's largest installer of lowcarbon heating technologies, we welcome the Warm Homes Plan as a vital opportunity to accelerate the uptake of gamechanging technologies - from heat pumps to solar and home batteries - for millions of households. “To achieve net zero, we must start where it matters most - in people's homes. That means making the transition simple, affordable and within reach for every household. And with 7,000 highly skilled, unionised British Gas engineers on the ground, we're ready to get on with the job, helping families cut bills, cut carbon, and power a cleaner future.” Chris Norbury, Chief Executive of E,ON 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.” Dhara Vyas, Chief Executive of Energy UK, said: “Supporting better access to clean heat systems, solar panels, batteries and other low-carbon technologies will help millions of households across the UK bring down their energy bills. “£15 billion is a substantial commitment, and it's great to see the plan has an offer for all households with substantial grants for clean heat solutions and affordable finance options for various low-carbon technologies, as well as fully funded measures for fuel poor and low-income homes. “The Warm Homes Plan also provides certainty to investors and businesses in the energy market, and will drive growth, supporting the creation of thousands of good jobs across the country.” Tania Kumar, Energy Transition Director, CBI, said: “The Warm Homes Plan signals a significant commitment to upgrading homes across the country. By making millions of homes energy efficient, supporting those most in need in society and unleashing consumer demand for heat pumps and solar panels, households and businesses alike will benefit from these investments in the clean energy economy. “Businesses stand ready to support the government to turn this ambition into delivery, including through low and zero interest loans. Improving the energy efficiency of Britain's homes is essential for tackling the cost‑of‑living pressures households continue to face. To ensure these benefits are felt by all households, a continued and unwavering focus on driving down the overall cost of energy remains essential.” David Postings, CEO of UK Finance said: “Upgrading the UK's housing stock is essential to meeting our net zero goals, and boosting consumer demand is critical to unlocking private finance at scale. The new Warm Homes Plan is a welcome step forward, offering a package of support to help homeowners meet retrofit costs. The financial services sector will work with government, alongside other industries, to accelerate the growth of the green home finance market and help ensure households across the country can share in the benefits of the net zero transition.” Nick Davies, Head of Climate Policy at Green Alliance, said: “Everyone has a chance to lower their energy bills with clean technologies under the government's new Warm Homes Plan. That's critical because rollercoaster global gas prices have fuelled a cost of living crisis which means energy bills remain far too high. “Supporting more households to afford the upfront costs of installing solar panels or switching to ultra-efficient electric heat pumps will help to cut bills, reduce our reliance on imported gas and keep the climate safe for our children.” Madeleine Gabriel, Director of Sustainable Future at Nesta, said: “Increasing access to technologies that can help people live more sustainably comes with significant additional benefits. Solar panels and batteries are smart choices for people looking to cut their bills, and heat pumps also ensure people can enjoy a more comfortable, consistently warm home. “Today's announcements provide a clear path to helping millions more families reap the rewards of low-carbon home upgrades, whatever their financial situation and whether they own or rent their home. “We now look forward to seeing the UK government, local authorities and industry work collaboratively to deliver the Warm Homes Plan in practice, ensuring households across the country benefit from warm homes and lower bills.” Ed Matthew, UK Programme Director for the independent climate change think tank E3G, said: "The increase in oil and gas prices following the Russian invasion of Ukraine cost the UK £183 billion, three times the UK's annual defence budget. It is time to cut our dependence on fossil fuels and the dictators who are profiting from them. This Warm Homes Plan will give that mission a kick start by helping insulate and electrify more British homes than ever before. Investing in clean energy will cut energy bills, slash emissions, boost jobs and strengthen our energy security. It is the patriotic choice." Mike Thornton, Chief Executive of Energy Saving Trust said: “The Warm Homes Plan has real potential to make homes across the UK warmer, healthier and more affordable. With £15 billion of investment, the Plan will help bring low carbon technologies into homes, delivering lasting savings for people still feeling the pressure of the cost of living, whilst reducing our reliance on volatile fossil fuels. “The UK Government's commitment to offer a range of financial support will bring us closer to making home upgrades affordable so that all households - regardless of income - can take action. “Because we know clear advice is essential, we look forward to working with the UK Government to strengthen its advice offering so people can confidently access and benefit from the financial support available. “Installing low carbon technologies in more homes will ensure people feel the real, everyday benefits of cheaper, cleaner power.” Jonathan Brearley, Chief Executive Officer of Ofgem said: “The government's Warm Homes Plan is an important step towards the UK realising its goals in improving energy efficiency in our nation's buildings. Creating warmer, more energy efficient homes is in all our interests. Ofgem will continue to play a key part in supporting this. “The creation of a Warm Homes Agency will see existing Ofgem experts transfer over to the new organisation, to deliver energy efficiency schemes for homes and other buildings. By bringing together schemes currently split across government, Ofgem and elsewhere, households and scheme users will benefit from a clearer, more efficient system." Jambu Palaniappan, CEO of Checkatrade, said: "This is a welcome and important step towards accelerating the decarbonisation of British homes in a way that benefits consumers and tradespeople. "Improving insulation, expanding access to solar and heat pumps, and supporting other energy-efficient upgrades will lower the barriers to green home improvement and make it easier and more affordable for households to cut their bills and carbon footprint. “The launch of the Warm Homes Plan also represents a significant moment for the nation's skilled trades. It can help create long-term, sustainable work for installers and retrofit specialists, while giving homeowners the confidence to take action. "Checkatrade stands ready to help consumers take advantage of the proposals and tradespeople to seize the growth opportunity." Angus McCarey, CEO of Uswitch, said: “Increasing access to energy efficient technology and warm home upgrades is a vital step towards improving the UK's energy system and bringing bills down. “We know many households are willing to take action to reduce their energy bills while keeping homes warm. More consumers need to feel confident that the technology is straight-forward to get in place, and, critically, makes sense financially. We look forward to working with the Government to make this a reality so more households can feel the benefits.” Sara Edmonds, Co-Director of the National Retrofit Hub, said: "The National Retrofit Hub welcomes the government's Warm Homes Plan as an opportunity to expand the definition of success in retrofit, focusing on the real impact retrofit has on people's lives. Meeting fuel poverty and carbon targets is vital, and evidence shows people value warm, healthy, affordable homes with greater comfort and less damp and mould. The National Retrofit Hub will work with government and partners to help ensure the Warm Homes Plan delivers these outcomes in practice in ways that reflect local places and lived experience of communities." Charlotte Lee, Chief Executive of the Heat Pump Association UK, said: “Today's publication, and the funding confirmed to deliver the Warm Homes Plan, send a strong signal to both industry and consumers that the shift to clean, electrified heat remains important for this Government. Heat pumps are a proven, scalable solution that can lower energy bills, improve comfort, and reduce carbon emissions for homes and buildings across the UK. We will continue to work with government and industry partners to support the sector and translate this plan into real progress on the ground.” Gemma Grimes, Director of Policy and Delivery at Solar Energy UK, said: “Installing solar panels can slash hundreds of pounds off household energy bills each year, especially when combined with a battery energy storage system and a heat pump. With the loans and grants provided through the Warm Homes Plan, a huge proportion of the UK population will share the benefits. Almost two million smaller-scale installations have been made already, on homes and businesses - the industry stands ready and able to build millions more by 2030.” Garry Felgate, CEO of The MCS Foundation, said: "The Warm Homes Plan reaffirms the Government's commitment to clean heat and energy, and the additional funding to help more households access affordable energy in their homes is extremely welcome. “MCS data shows that more households than ever are installing renewable energy systems, with 2025 yet another record year for heat pumps, batteries, and solar panels. Government grants and incentives have played a significant role in boosting this growth, and the introduction of Government-backed low-interest loans will provide further momentum by reducing upfront costs for more households. It will also serve to accelerate progress towards installing the 1.5 million heat pumps a year by 2035 that we need to meet climate targets. “All households can gain financial savings from renewable energy, and the support for low-income households is especially welcome. Tackling fuel poverty and increasing the uptake of renewables go hand-in-hand, and today's Warm Homes Plan shows that the Government recognises this.” Rhian-Mari Thomas, Chief Executive Officer of the Green Finance Institute, said: “The Warm Homes Plan is foundational for opening the door to solutions that make homes across the UK warmer, healthier and more affordable to run. Over the next year, the Green Home Finance Strategic Partnership will work collaboratively with financial institutions, energy providers, consumer groups, and government to build on previous programmes and initiatives. The goal is to develop implementable solutions that will drive homeowner demand and remove barriers to innovation in green home financing. This collaboration will turn ambition into action, creating jobs and making home energy upgrades a reality for everyone across the UK." Fiona Hyde, Head of Sustainability of Santander UK, said: “We know that homeowners are increasingly recognising the importance of improving the energy efficiency of their homes, but the upfront cost of making meaningful changes prevents many from taking action. “The Warm Homes Plan offers a chance for households to save money on bills every year while also benefiting from more comfortable homes, that in turn support the green transition. Of course, homeowners need to know what improvements they can make to understand what they might cost. As part of our commitment to energy efficiency at Santander, we offer a range of support, available via the Greener Homes Hub, to provide a personalised plan for homeowners.” Simon McWhirter, CEO of the UK Green Building Council (UKGBC), said: "This Warm Homes Plan represents a vital and necessary step towards delivering comfortable, affordable and future-proofed homes and buildings across the UK. “UKGBC has long issued a clarion call for a long-term national strategy to tackle the challenge of retrofitting all our homes and commercial buildings at scale, and we are pleased to have worked alongside industry and government to help shape its development. “We welcome the ambition for a solar ‘rooftop revolution', low interest loans to help households wean themselves off volatile fossil fuels, and the focus on protecting low-income householders. By harnessing abundant solar energy and heat pump technology to both heat and cool buildings, the plan will help future-proof against rising bills and our rapidly warming climate." |