Warm Homes Plan promises free upgrades and cheaper energy for millions

Millions of households could soon see their homes made warmer and cheaper to run under the government’s new Warm Homes Plan, a sweeping programme that combines free upgrades for low-income families with long-term loans to help homeowners invest in green technology.

The scheme, unveiled by the Department for Energy Security and Net Zero, aims to tackle fuel poverty while accelerating the move away from fossil fuels. Ministers say it will cut energy bills, improve living conditions and reduce carbon emissions across Britain’s ageing housing stock.

Speaking as the plan was announced, Energy Secretary Ed Miliband described the state of many homes as a national failure. “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,” he said. “With this investment, we embark on a national project to turn the tide on fuel poverty.”

At the heart of the policy is a £15 billion public investment commitment, including £5 billion earmarked specifically for households struggling to pay their energy bills. Under the plan, some families will receive fully funded insulation and clean-energy installations, tailored to their property.

Officials cited the example of a household receiving solar panels and a battery system at no cost, a package that could be worth up to £12,000. In some cases, entire streets of social housing may be upgraded at once.

Homeowners not eligible for free support will be able to apply for government-backed low or zero-interest loans to install measures such as solar panels, heat pumps and home batteries. These loans sit alongside the existing £7,500 grant for replacing gas boilers with heat pumps and are designed to make clean technology more accessible.

New rules under the Future Homes Standard will also require solar panels to become a default feature on newly built homes, signalling a longer-term shift in how housing is designed and powered.

The Warm Homes Plan extends beyond owner-occupiers. Ministers confirmed stronger protections for renters living in cold, damp or mould-affected properties, alongside support for landlords to improve energy efficiency. The department estimates that 1.6 million children currently live in private rented homes affected by such conditions.

The government says the package could lift around half a million families out of fuel poverty by the end of the decade. It follows last year’s Budget announcement by Chancellor Rachel Reeves, which pledged an average £150 annual reduction in energy bills for households from April.

Campaigners broadly welcomed the direction of travel but warned that delivery would be critical. Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said the plan amounted to a rescue mission for Britain’s coldest homes.

“Combined with long-overdue improvements in the private rented sector, it could save lives, cut NHS costs and permanently slash energy bills,” he said. However, he added that households would still need support while waiting for upgrades and called for stronger guarantees that public investment would lead to lower bills.

Further details on eligibility and rollout are expected in the coming months. Guidance on existing energy-efficiency support is already available via the government’s official advice service, which outlines what homeowners and renters can currently access to improve their homes and reduce costs. Find out more about home energy improvements here.

For more reporting on how national policy affects everyday life across London and the UK, follow EyeOnLondon for clear, independent coverage. We welcome thoughtful debate in the comments.

[Image Credit | The Eco Experts]

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