Government launches £15bn Warm Homes Plan for energy upgrades

The UK government has launched a £15 billion Warm Homes Plan aimed at cutting energy bills, tackling fuel poverty, and rolling out clean energy upgrades to up to five million homes by 2030.

Announced on 20 January, the plan represents the largest public investment in residential energy upgrades in British history. It will fund the installation of solar panels, batteries, insulation, and heat pumps across a range of housing types, with targeted support for low-income households and social housing tenants.

The scheme includes a £5 billion package to deliver free upgrades for low-income families. Eligible households could receive full-cost installations of technologies such as rooftop solar and battery systems, currently valued between £9,000 and £12,000. In social housing areas, upgrades may be delivered at scale, improving energy efficiency across entire streets.

A universal offer will also be introduced, enabling all homeowners to access government-backed low or zero interest loans to install clean energy systems. Grants of up to £7,500 will be available for heat pumps, including for the first time air-to-air models that can also provide cooling in summer.

To encourage long-term energy savings, all new homes will be required to include solar panels as standard from early 2026, under the Future Homes Standard. The government aims to triple the number of homes with solar installations by 2030.

Prime Minister Keir Starmer said the plan would reduce household energy costs and help lift up to one million people out of fuel poverty. “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain,” he said.

Energy Secretary Ed Miliband described the initiative as a national project to “wage war on fuel poverty,” and address affordability pressures stemming from global energy volatility.

The Warm Homes Plan builds on earlier government action to lower energy bills, including a £150 rebate for all households from April and the £150 Warm Home Discount for six million eligible households.

The plan will also provide funding allocations for devolved governments in Scotland, Wales and Northern Ireland to ensure nationwide impact. It follows years of underinvestment in residential energy efficiency, with insulation installations having declined by over 90% between 2010 and 2024.

The policy forms part of the government’s wider clean power mission and is expected to support job creation, improve housing stock, and reduce long-term energy demand across the country.