The UK government has launched its Warm Homes Plan as part of a £15bn investment to upgrade the nation’s homes and cut energy bills.
The plan is expected to include up to five million homes, with investment also allocated for devolved governments in Scotland, Wales and Northern Ireland.
A government statement said the new plan will help lower the costs for clean energy products, such as solar panels and heat pumps, supporting consumer choice for all households.
Home insulation installations fell by more than 90% between 2010 and 2024, according to government data, which has contributed to higher energy bills for households.
While the cost of clean energy products has fallen in recent years, they remain unaffordable for many homeowners.
Commenting on the announcement, prime minister Keir Starmer insisted that a warm home shouldn’t be a privilege, but 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,” he said.
Energy secretary Ed Miliband added that the £15bn investment represents “a national project to turn the tide” by addressing fuel poverty and Britain’s affordability crisis.
What the Warm Homes Plan promises
The plan includes three pillars which offer:
Direct support for low-income families
Low-income households will receive free packages of upgrades, depending on what technologies are most suitable for their homes. For example, 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.
An offer for everyone
A government-backed, zero and low interest loans programme to support the installation of solar panels 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. A £7,500 universal grant for heat pumps will also be available, as well as ‘air-to-air heat pumps’ that can also cool homes in the summer.
New protections for renters
Updated protections for renters will mean landlords have a responsibility to ensure that rented homes – both private and social – are safe, warm and affordable. By supporting landlords to make these upgrades over several years, the government estimates that around half a million families will be lifted out of fuel poverty by the end of the decade.
Industry reaction
The Chartered Institute of Building (CIOB) welcomed the Warm Homes Plan, but warned that a focus on skills and training will be needed to support its delivery.
David Barnes, head of policy and public affairs at CIOB, said: “Improving energy efficiency at scale will be critical for the UK government to meet its wider net zero ambitions and reduce consumer bills. However, we believe these targets will only be met if there is a significant investment in skills and training.
“The importance of a trained and competent workforce advising and carrying out energy efficiency installations cannot be understated in light of recent, well-documented failures that have resulted in severe defects and low consumer confidence.”
Barnes added that the installation and maintenance of evolving technologies requires a well-trained workforce, otherwise “we risk having systems which do not provide maximum benefit for the consumer”.
“To succeed, the government must ensure the plan is delivered in close consultation with the construction industry. Historically, issues with schemes have arisen when industry has not been engaged, while stop-start approaches and sudden funding withdrawals have further stunted progress and confidence.”
Skills and competence
Similarly, the Federation of Master Builders (FMB) highlighted the importance of the skilled and competent workforce needed to deliver the Warm Homes Plan.
Brian Berry, chief executive of the FMB, said: “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 the government is needed, there must be incentives to get the industry moving, to make sure they are competent and skilled up to upgrade the majority of the UK’s homes.
“Focusing 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.”
‘Vital and necessary step’
Responding to the announcement, Simon McWhirter, CEO of the UK Green Building Council (UKGBC), said the 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.”
Real-world impact
Sara Edmonds, co-director of the National Retrofit Hub, added that the plan is 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,” Edmonds said.
“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 the lived experience of communities.”
