The government has launched its Warm Homes Plan to upgrade the nation's homes, help families cut their energy bills, and tackle fuel poverty.

According to the government, families across the country will see lower energy bills as a result of this long-awaited plan to upgrade the nation’s homes.  

The Warm Homes Plan will deliver £15 billion of public investment, roll out upgrades to up to 5 million homes that, it is estimated, could save them hundreds on energy bills and help to lift up to a million families out of fuel poverty by 2030.  

Upgrading homes is one of the best ways to bring down bills for good, and the plan is billed as the next step in addressing the long-term issue of energy affordability for the country. Home insulation installations fell by more than 90% 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 - and the plan aims to help bring these costs down so working people can benefit.  

The Warm Homes Plan targets help at low-income families, alongside a universal offer, to ensure that working families can 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.  

These loans will also be available for batteries and heat pumps. 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. 

"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 said: "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 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.  

Home upgrades available under government schemes will include: solar panels (Photovoltaic and thermal), heat pumps (ground source, air source (including air to air)), home and heat batteries, smart controls, insulation (wall, floor, and roof) and draught proofing. These loans will also be available for batteries and heat pumps. 

Detail on how consumers will be able to access low-interest loans will be released later in the year, following further engagement with the finance sector and consumer groups.

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. 

An offer for everyone
A 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 aims to 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
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. 

Reacting to the announcement, John Newcomb, CEO of the Builders Merchants Federation said: “Our members manufacture and supply all the products and systems in the Warm Homes Plan, making this a timely announcement as many are reviewing their trading forecasts for the next two to three years and considering investment decisions and staffing levels. 

“However, it seems illogical that a £7,500 Boiler Upgrade Scheme grant can be claimed without measures to properly insulate homes first. We will call on the Government to ensure insulation is given due importance in the plan.”

The BMF also emphasised the need for many more qualified and competent installers, ranging from those trained in low and zero-carbon systems to those installing traditional products such as insulation.

Newcomb added: "It is vital that contractors undertaking any upgrade under the Warm Homes Plan are correctly trained, supervised and supported by robust checks and balances so everyone can have confidence that they are investing in quality, professional installations that achieve the government’s aim to improve energy efficiency and cut household bills.”

Brian Berry, Chief Executive of the Federation of Master Builders, said: “The launch of the Government’s long awaited Warm Homes Plan is a critical step forward. A £15?billion 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 Government is needed, there must be incentives to get the industry moving, to make sure they are competent and skilled up to upgrade the majoprity of the UK's homes. 

“Focussing 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." 

Dan Marsden, Director of Renewables at Renewables Centre, Wolseley, said: “Our recent report highlighted the need for a clear, long-term strategy that will underpin home decarbonisation. The Warm Homes Plan delivers this direction, providing the certainty and confidence the sector needs to keep investing in the workforce and supply chain required to scale low carbon heating across the UK.

“Plans to both simplify heat pump installations, and target install times of no more than three days from the day of consumer signature are welcome, and we are already helping to support these ambitions by simplifying delivery and installation at scale through our Renewables Centre.

“We welcome the plan’s focus on installer training support, minimum energy efficiency standard uplifts, stronger consumer protections, and commitments to decarbonising new homes and buildings. Together, these measures will help create the conditions for a thriving renewables market.

"We also support the area-based delivery approach, which better reflects the diverse needs of the UK’s building stock and gives consumers greater flexibility depending on their property type.

“As demand for low carbon heating grows, building a skilled workforce, ensuring adequate financial support, and maintaining strong quality assurance will be essential to reducing bills and delivering warm, efficient homes. We will continue working with installers and consumers across the country to help deliver the UK’s energy transition.”

Scott Sanford, Head of Technical Services & Certification at SNIPEF, said: “We welcome and support any initiative that helps families cut energy bills, reduce fuel poverty and accelerate the transition to a low carbon future.

“Improving insulation, expanding access to solar and heat pump technologies, and targeted support for low-income households are vital steps in delivering warmer homes, tackling long-term energy costs and contributing to net zero objectives.

“However, the plan lacks explicit and substantial detail about investment in the training and skills development required to deliver quality home upgrades at scale. SNIPEF is clear that without a properly trained and competent workforce, large-scale retrofit and low carbon heating deployment will falter.

“We have already seen the consequences of this approach. Previous government-supported insulation schemes allowed complex work to be carried out by inadequately trained and poorly supervised installers. In practice, this meant almost anyone could undertake publicly funded retrofit work, leading to serious failures, as seen in the recent spray foam insulation scandal, which has damaged homes, blighted homeowners and is now costing millions to resolve.

“If this programme is to succeed, investment in homes must go hand in hand with investment in people, skills and competence. Quality, safety and consumer confidence must be built in from the start, not dealt with after the damage is done.”

Sara Edmonds, Co-Director of the National Retrofit Hub, said: "The National Retrofit Hub welcomes the government’s Warm Homes Plan as 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. 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 lived experience of communities."

Charlotte Lee, Chief Executive of the Heat Pump Association UK, said: "Today’s publication, and the funding confirmed to deliver the Warm Homes Plan, send a strong signal to both industry and consumers that the shift to clean, electrified heat remains important for this Government. Heat pumps are a proven, scalable solution that can lower energy bills, improve comfort, and reduce carbon emissions for homes and buildings across the UK. We will continue to work with government and industry partners to support the sector and translate this plan into real progress on the ground."

Gemma Grimes, Director of Policy and Delivery at Solar Energy UK, said: "Installing solar panels can slash hundreds of pounds off household energy bills each year, especially when combined with a battery energy storage system and a heat pump. With the loans and grants provided through the Warm Homes Plan, a huge proportion of the UK population will share the benefits. Almost two million smaller-scale installations have been made already, on homes and businesses - the industry stands ready and able to build millions more by 2030."

Garry Felgate, CEO of The MCS Foundation, said: "The Warm Homes Plan reaffirms the Government’s commitment to clean heat and energy, and the additional funding to help more households access affordable energy in their homes is extremely welcome. 

"MCS data shows that more households than ever are installing renewable energy systems, with 2025 yet another record year for heat pumps, batteries, and solar panels. Government grants and incentives have played a significant role in boosting this growth, and the introduction of Government-backed low-interest loans will provide further momentum by reducing upfront costs for more households. It will also serve to accelerate progress towards installing the 1.5 million heat pumps a year by 2035 that we need to meet climate targets. 

"All households can gain financial savings from renewable energy, and the support for low-income households is especially welcome. Tackling fuel poverty and increasing the uptake of renewables go hand-in-hand, and today’s Warm Homes Plan shows that the Government recognises this."

Hamid Salimi – Head of Residential Products at Daikin, said: The Warm Homes Plan will accelerate progress towards net zero. It will make it cheaper to install and run low carbon heating, making heat pumps even more attractive, particularly when they are paired with solar PV and battery technologies. The ability to apply for a low or zero interest loan on-top of the Boiler Upgrade Scheme grant is particularly welcome, as it will encourage more householders to invest in this technology.

"We also welcome the plan’s fully funded upgrades for low-income households, helping ensure the shift to cleaner heating is fair and accessible for all.  

“We would, however, urge the government to take early and decisive steps to reduce the price of electricity. This remains a barrier to the electrification of domestic, commercial and industrial heating.”

Daniel Redfern, Head of Marketing Communications at Marley, said: “The announcement of the Warm Homes Plan is, of course, to be welcomed, and the £15bn allocation to support energy performance improvements to UK housing stock will play an important role in helping the UK progress towards its Net Zero ambitions.

“Designed to support the overhaul of up to 5 million homes through the specification of renewable technologies, including solar panels on roofscapes, the plan will further accelerate efforts to improve home energy efficiency and help lower energy bills, especially in the social housing sector.

“The investment presents a tangible opportunity for local government and the housebuilding sector to opt for proven renewable energy solutions that can help deliver energy efficient and low carbon homes for tenants, as well as new and existing homeowners.

“The roofing sector will be central to the successful delivery of the Warm Homes Plan, with solar panels acknowledged to be a primary technology solution. However, it’s now important that there is an increased focus on upskilling the existing workforce as well as attracting new talent into the industry to ensure we have the workforce in place to implement the plan at scale, both on retrofit projects and new builds.

“We expect the Government’s financial commitment through the Warm Homes Plan will further incentivise the uptake of proven technologies that can help transform the energy efficiency performance of UK homes for the long term. As such, product supply will be central to the plan’s successful implementation, and it’s important that those specifying solar panels are choosing high quality solutions to ensure long-term performance. Marley has led the way by providing a fully roof integrated solar panel solution – Marley SolarTile® - designed specifically for pitched roofs, and available as part of a wider single source renewable technology package that includes connected battery storage and inverters.

“As more details around the plan are announced in due course, we look forward to working with those across the construction industry to play our part in ensuring its successful delivery.”

Ben Bland, Commercial Manager at LKAB Minerals, said: “Investing in clean technology is important to bring down carbon emissions, but the current plans miss an opportunity to tackle both climate change and energy costs by making homes more efficient.

"Helping consumers adopt underfloor heating instead of traditional radiators, combined with floors made of high-quality building materials, can cut heat loss and save over £450 a year from the average UK energy bill."

"The launch of the Warm Homes Plan is potentially a key moment for energy affordability across Britain and underlines this Government’s commitment to cleaner energy,” said Neil Sawers, Commercial Technical Manager at Grant UK.

“The Plan’s three-pillar approach is welcome; direct support for low-income families, an offer of universal access to clean energy financing and meaningful protections for renters. Heat pumps are central to the new Warm Homes Plan and we are pleased about the continued focus on this proven and clean home heating solution.

“We will continue to work with industry as the Plan develops and we look forward to seeing the new Warm Homes Agency, which will be key to the Plan’s successful delivery, take shape.”

Craig Wilkinson, Luthmore Co-Founder, said: "The Warm Homes Plan is a massive win for flexible electric heating and for the installers who will deliver the transition at scale.

"With confirmation of the Future Homes Standard in 2026, a commitment to lowering electricity costs, and stronger backing for low-carbon heating, this is great news for innovation across the sector.

"Heat pumps will of course play a central role, but there are many homes where they simply aren’t practical or affordable to install due to space constraints, fabric limitations, or disruption. Installers need credible electric alternatives for those properties.

"Our battery-enabled electric boiler is designed to fit into existing boiler locations, install with minimal disruption, integrate with solar, and keep upfront costs down, giving installers a practical solution for harder-to-treat homes while helping households cut bills. 

"Luthmore welcomes the government’s focus on clean heat and consumer choice, and we’re proud to be bringing a pioneering technology to market that supports those harder-to-treat homes.” 

Martyn Bridges, Director of External Affairs at Worcester Bosch, said: "We welcome the Government’s announcement of the Warm Homes Plan.

"Any type of initiative that intends to reduce the heating and hot water bills of properties, as well as improve the comfort for many, is something we’ll always support.

"We do feel that the plan could have gone further and included an acknowledgement of hybrid systems, as our recent trial with the University of Salford found that hybrid heat systems can effectively heat homes in the UK while still working towards the country’s Net Zero goals.

"However, we will still be doing our bit in helping achieve some of the ambitions and targets set out in the Warm Homes Plan.”