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 and when they want to
• Plan will help lift up to one million families out of fuel poverty and tackle long term energy costs, following government’s intervention to take an average of £150 of costs off energy bills for all families this April

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, 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 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 6 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 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 £5 billion of public investment
• For example, families could receive fully funded installations of solar panels and a battery, to the full average cost (currently £9,000-£12,000)
• For social housing residents, this could mean upgrades to entire streets at the same time, lowering bills and improving warmth and comfort for whole neighbourhoods

An offer for everyone: 

• The government-backed, zero and low interest loans programme to get solar panels onto the nation’s rooftops and new rules that mean every new home will come with solar panels by default
• This plan will triple the number of homes with solar panels on their rooftops by 2030
• Making it easier for anyone who wants to get a heat pump, with a £7,500 universal grant for heat pumps, and the first ever offer for ‘air-to-air heat pumps’ that can also cool homes in the summer

New protections for renters:

• Today, 1.6 million children live in private accommodation suffering from cold, damp, or mould
• The government believes in a simple principle that if you rent a home, private or social, a landlord has a responsibility to ensure that it is safe, warm, and affordable
• By updating protections for renters, and supporting landlords to make these upgrades in a fair way over several years, an estimated half a million families will be lifted out of fuel poverty by the end of the decade

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."

The ‘Warm Homes Plan’ will also:  

• Transform people’s experience of home upgrades through the new Warm Homes Agency. This will reverse the inherited situation where there is a fragmented and overly complex system to navigate for energy efficiency upgrades ensuring consumers have access to quality installations, from initial advice to installation. The new agency will bring together existing functions from across the regulator and other government arms-lengths bodies, providing new consumer support while removing duplication and waste in the current delivery landscape.
• Put local mayors in the driving seat for rolling out home upgrades in their area, backing local leaders to deliver on behalf of their residents.  
• Create good jobs across the country, with 180,000 additional high-quality, well-paid, future-proofed jobs in energy efficiency and clean heating by 2030. The UK has one of the best gas boiler industries in the world, and this plan will be back these workers to ensure that they seize the opportunities of clean tech, with a new aim to ensure that at least 70% of heat pumps installed in the UK are made in the UK, and trebling the Government’s investment in the heat pump supply chain to £90 million to support investment across the country.  
• Unlock £38 billion in total investment across the Parliament, and with additional funding for skills, innovation and UK manufacturing, the plan will ensure that British workers and businesses reap the benefits. 
• Strengthen the UK’s energy security by reducing our reliance on gas and protecting families from future price spikes. 
• Help to mitigate and adapt to climate change, as buildings are currently responsible for over a fifth of the UK’s territorial greenhouse gas emissions. These home upgrades will also ensure more people are protected from cold in the winter and heat waves in summer. 

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)
• 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.

KeyFacts Energy News: Energy Transition