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22/01/2026

UK Government Launches £15bn Warm Homes Retrofit Plan

The UK Government has announced the "Warm Homes Plan," the largest public investment in domestic energy efficiency in UK history.

Backed by £15 billion, the initiative aims to upgrade five million homes across the country, significantly reducing energy costs for working families and addressing long-term energy security.

The programme focuses on three primary pillars: direct support for low-income households, a universal offer for all homeowners, and enhanced protections for those in the rental sector. By 2030, the government expects the plan to have lifted one million families out of fuel poverty.

Pillars of the Warm Homes Plan:

• Low-Income Support: A £5 billion allocation will provide fully funded upgrade packages for low-income families. This includes the installation of solar panels and battery storage, typically costing between £9,000 and £12,000, at no cost to the resident.

• Universal Offer: All homeowners will gain access to government-backed, low or zero-interest loans for clean energy technologies like solar panels, batteries, and heat pumps. The plan also includes a £7,500 universal grant for heat pumps and introduces support for air-to-air heat pumps.

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• Rental Reform: New rules will require landlords in both the private and social sectors to ensure properties meet minimum warmth and safety standards. This is expected to lift 500,000 renting families out of fuel poverty by the end of the decade.

Additionally, the government confirmed that the Future Homes Standard will be implemented in early 2026, mandating that all new-build properties include solar panels as standard to ensure they are cheaper to run from day one.

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 added: "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 plan also includes immediate cost-of-living relief, with measures from the recent Budget expected to reduce average energy bills by £150 from April, alongside the £150 Warm Home Discount for six million households.

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