The government has launched a £15 billion “Warm Homes Plan” to upgrade homes across the UK, aiming to cut household energy bills, expand access to clean energy technologies and reduce fuel poverty.

Ministers say the programme will support upgrades in up to 5 million homes by 2030 and could lift up to one million families out of fuel poverty. Measures include support for insulation, heat pumps, solar panels and home batteries, with different routes available depending on household circumstances.

Alongside the new plan, the government has reiterated its recent cost-of-living intervention announced at the Budget, stating it will reduce energy bill costs by an average of £150 from April. It also says around 6 million households will receive the £150 Warm Home Discount, taking the combined value of support for eligible homes to £300.

Why the government says this matters

The announcement is presented as a long-term response to energy affordability, with ministers pointing to a sharp decline in insulation installations since 2010 and arguing that improving energy efficiency is one of the most effective ways to permanently lower bills.

The plan is also intended to respond to growing demand for “home clean energy” products such as solar panels and heat pumps, which the government says remain unaffordable for many households despite falling technology costs.

What’s in the Warm Homes Plan

The government says the Warm Homes Plan is built around three main pillars:

1) Direct support for low-income households

• A £5 billion element of the programme would provide free, tailored upgrade packages for the home.
• The government says this could include fully funded solar panels and a battery (quoted average costs currently £9,000–£12,000).
• For social housing, upgrades may be delivered at scale across streets or neighbourhoods to improve comfort and reduce bills.

2) An offer for everyone

• Government-backed low and zero-interest loans for homeowners to install solar panels, with similar loans available for batteries and heat pumps.
• A commitment to increase rooftop solar, with the government stating an aim to triple the number of homes with solar panels by 2030.
• A £7,500 grant for heat pumps, plus a new offer to support air-to-air heat pumps (which can also provide cooling in summer).

3) New protections for renters

• Updated protections and new rules are intended to ensure rented homes are safe, warm and affordable, with landlords expected to upgrade properties over a number of years.
• The government says it expects these changes could lift around half a million families out of fuel poverty by the end of the decade, and cites estimates that 1.6 million children currently live in private rented homes affected by cold, damp or mould.

UK-wide funding and future standards

The Warm Homes Plan is backed by £15 billion of public investment, including allocations for Scotland, Wales and Northern Ireland.

The announcement also references changes to new-build standards, with the government stating that new homes should be cheaper to run and that solar panels will be “standard”, linked to the Future Homes Standard expected to be implemented in early 2026.

What ministers said

Prime Minister Keir Starmer said the plan would help “slash energy costs” and lift up to a million people out of fuel poverty, arguing that a warm home should be a basic guarantee for families.

Energy Secretary Ed Miliband described fuel poverty as a national scandal and said the investment marks the start of a “national project” to improve home warmth, safety and affordability.

Kate Bell, Assistant General Secretary of the TUC, and co-chair of the Warm Homes Taskforce, said:

“No family should live in cold, damp or mouldy conditions. We all know our winters are getting colder with climate change. Finally, we have a government pledging to deliver the millions of home upgrades that the British public need. If delivered right, this programme of investment can deliver quality jobs in every corner of the country and bring down bills.”