The newly announced ‘Warm Homes Plan’ will deliver £15 billion of public investment, roll out upgrades to up to five 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 says it has already taken action on the cost of living at the Budget, taking an average of £150 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 aims to address the long-term issue of energy affordability for the country. Home insulation installations fell by more than 90 percent 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.
The ’Warm Homes Plan’ targets help for low-income families, alongside a universal offer, to help working families 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 in a so-called “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.
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 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.
More than a million homes were previously 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:
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.”