UK Government Launches the Warm Homes Plan: £15bn Investment to Upgrade Britain’s Homes
The Warm Homes Plan outlines a nationwide programme to improve home energy efficiency, reduce bills and support low-carbon heating across the UK.
The UK government has launched the Warm Homes Plan, a major national programme designed to upgrade the country’s homes, cut energy bills and tackle fuel poverty.
Published on 20 January 2026, the Warm Homes Plan represents the largest public investment in home upgrades in British history, backed by £15 billion of funding.
The plan aims to support up to five million homes by 2030, helping families reduce long-term energy costs while accelerating the shift to low-carbon heating, insulation and clean energy technologies.
What Is the Warm Homes Plan?
The Warm Homes Plan is a long-term government strategy to make homes warmer, more energy efficient and cheaper to run. It brings together grants, finance and regulation to support upgrades such as heat pumps, solar panels, batteries and insulation across all housing tenures.
Rather than focusing only on short-term bill support, the Warm Homes Plan targets permanent reductions in household energy costs by improving the performance of homes nationwide.
The plan is led by the Department for Energy Security and Net Zero and brings together funding, regulation and finance to improve the energy performance of homes.
£15 Billion Investment to Cut Bills and Fuel Poverty
Under the Warm Homes Plan, £15 billion of public investment will be used to deliver upgrades that reduce energy demand and reliance on gas. The government estimates that up to one million families could be lifted out of fuel poverty by the end of the decade.
The plan builds on earlier cost-of-living measures by addressing the root cause of high bills: inefficient homes that are expensive to heat.
A Warm Homes Plan for All Households
The Warm Homes Plan is structured around three core pillars, ensuring support is available to households across different incomes and tenures.
Direct support for low-income households
Low-income families and those in fuel poverty will receive fully funded home upgrades under the Warm Homes Plan. Packages will be tailored to individual homes and may include insulation, solar panels, batteries or low-carbon heating systems.
In social housing, the plan enables coordinated upgrades across streets and estates, improving comfort and reducing bills for entire communities.
An offer for everyone
The Warm Homes Plan introduces government-backed low and zero-interest loans, allowing households to upgrade their homes when they choose. These loans can be used for solar panels, batteries and heat pumps.
A £7,500 universal grant for heat pumps remains available, alongside new support for air-to-air heat pumps. The plan also reinforces higher standards for new homes, with solar panels expected as standard under the Future Homes Standard from early 2026.
Read more: Future Homes Standard 2025: What Will Replace Gas Boilers in New Homes?
Stronger protections for renters
The Warm Homes Plan includes new measures to improve energy efficiency in rented homes, supporting landlords to make upgrades over time while protecting tenants from cold, damp and mould. These changes aim to ensure rented homes are safe, warm and affordable.
The Role of Low-Carbon Heating in the Warm Homes Plan
Heat pumps sit at the heart of the Warm Homes Plan, offering a low-carbon way to heat homes using electricity rather than gas. For those new to the technology, it’s helpful to understand how a ground source heat pump works and how heat is transferred from the ground into a building.
Read more: How Does a Ground Source Heat Pump Work?
By combining grants, loans and fully funded support, the Warm Homes Plan creates stronger conditions for the rollout of heat pumps across both new-build and existing homes.
Independent guidance from the Energy Saving Trust shows that improving insulation and switching to low-carbon heating are among the most effective ways to reduce household energy bills.
What the Warm Homes Plan Means for Housing and Energy
The Warm Homes Plan provides long-term certainty for local authorities, housing providers, developers and the clean energy supply chain. It supports large-scale delivery of home upgrades while encouraging private investment and job creation across the UK.
For developers and housing providers, the Warm Homes Plan also reinforces the advantages of acting early on low-carbon heating, particularly for new-build projects where compliance, planning certainty and long-term costs are critical.
Read more: Why Early Adopters of Ground Source Heat Pumps Will Lead the New-Build Market
Looking Ahead
The Warm Homes Plan marks a significant step toward improving the energy efficiency of Britain’s homes. By focusing on permanent upgrades rather than short-term fixes, the plan aims to deliver lasting benefits for households, communities and the wider energy system.
Further detail on how households will access finance and support under the Warm Homes Plan is expected later this year, as delivery frameworks are finalised.
Next steps
If you’re considering low-carbon heating or wider home energy upgrades - whether for a new-build or retrofit project - early planning can help you understand how the Warm Homes Plan may apply to your scheme. Contact Rendesco at enquiries@rendesco.com for a no-obligation discussion.