Government Unveils Landmark £15 Billion Warm Homes Plan to Upgrade Millions of Properties
In what is being described as the largest home upgrade project in British history, the government has launched the “Warm Homes Plan,” a £15 billion investment aimed at slashing energy bills and transforming the UK’s housing stock.
The ambitious initiative, announced this week, targets five million home upgrades by 2030. The strategy focuses on three core pillars: providing direct support for low-income families, offering universal financial incentives for all homeowners, and introducing strict new protections for renters.
A “Rooftop Revolution” for Solar
A central feature of the announcement is a nationwide push to triple the number of homes with solar panels. To achieve this, the government is introducing zero and low-interest loans to help homeowners manage the upfront costs of solar arrays, battery storage, and heat pumps.
The plan also signals a major regulatory shift for the construction industry. From early 2026, the Future Homes Standard will be implemented, mandating that all new-build homes come equipped with solar panels as standard. This move aims to ensure that new properties are cheaper to run from the moment the keys are handed over.
Combatting Fuel Poverty
With the goal of lifting one million families out of fuel poverty, the government has allocated £5 billion specifically for low-income households. These families will be eligible for fully funded upgrade packages, which can include solar and battery installations worth up to £12,000 at no cost to the resident.
The investment also extends to social housing, where entire streets are expected to undergo simultaneous retrofitting to improve insulation and heating efficiency.
New Standards for the Rental Sector
The plan addresses the “scandal” of cold and damp homes in the private and social rental sectors. New rules will require landlords to invest in energy efficiency upgrades, to ensure that all tenants have access to warm and affordable housing. By the end of the decade, these protections are expected to lift half a million renting families out of fuel poverty
Boosting British Manufacturing and Jobs
Beyond energy savings, the Warm Homes Plan is positioned as a major economic driver. It is estimated that the scheme will create 180,000 high-quality jobs in the energy efficiency and clean heating sectors by 2030.
The government has also set a target for 70% of heat pumps installed under the plan to be manufactured within the UK, supported by a £90 million investment in the domestic supply chain.
Streamlining the Transition
To manage this massive rollout, a new “Warm Homes Agency” will be established. This body will simplify the currently complex landscape of energy grants and advice, providing a single point of contact for consumers. This agency will bring together experts from Ofgem and other government bodies to ensure high standards of installation and consumer protection.
As the UK looks to bolster its energy security and reduce its reliance on volatile fossil fuel markets, this plan marks a significant shift toward a decentralised, electric-led energy future. Further details on the low-interest loan applications are expected to be released later this year following consultations with the finance sector.
