The government’s new Warm Homes Plan: What it means for our homes, bills, and the climate
You may have seen in the news last week that the government has published its new Warm Homes Plan. It sets out a long-term strategy for insulating Britain’s homes, switching to clean energy, bringing energy bills down, and tackling energy poverty.
This didn’t come out of nowhere.
For years, we have been calling for action on Britain’s cold, leaky homes. The UK has some of the worst-insulated homes in Europe - meaning wasted energy, higher emissions, and millions of people struggling to stay warm while energy companies profit. Time and again, we’ve told our politicians that fixing homes is one of the fastest, most effective ways to cut emissions and bills at the same time. Finally, it feels like the message is getting through.
The Warm Homes Plan that was announced last week is the biggest homes upgrade programme in British history. From tougher standards for new homes and landlords, to major investment in rolling out clean energy solutions for households across the country, this plan represents a step-change in ambition from the government - and this is something definitely worth celebrating.
What does the Warm Homes Plan promise?
-
The Warm Home Plan makes clear that this government aims to lift one million households out of fuel poverty by 2030. To this end, £4.4 billion will be spent as direct grants for low-income households - covering the costs of home upgrades including solar panels, batteries, heat pumps, and insulation.
The Plan also sets out that for social housing, upgrades will be delivered to entire streets at the same time, lowering bills and improving comfort for the whole community.
-
The Warm Home Plan isn’t just for those on the lowest incomes. The plan announces £2 billion will be spent on low-interest consumer loans that will help homeowners cover the upfront costs of solar panels, heat pumps and insulation.
-
The universal £7,500 heat pump grant will continue to be available for households across the UK, and now includes support for air-to-air heat pumps (which can also keep your home cool in the summer) and heat batteries.
-
By removing some policy costs from people’s electricity bills and funding them through public spending instead, the government is correcting an unfair price imbalance that pushes up the cost of electric heating compared to gas. This rebalancing makes the system fairer, reveals the true efficiency of clean heating, and helps households — especially those with electric heating — switch to low-carbon solutions, with heat pump users expected to save over £200 and high-use electric storage households up to £442.
-
The Warm Homes Agency which is due to launch next year will provide clear, independent advice, and help people make decisions about their home energy and navigate available schemes.
-
The government’s Future Homes and Buildings Standards will be published later this year, but the Warm Homes Plan confirms that under the new standards, new homes will have low-carbon heating, high levels of energy efficiency and solar panels by default. This will deliver low energy bills and low emissions for these households, along with warmth and comfort.
-
The Warm Homes Plan brings in new regulations meaning that private landlords must improve the energy performance of their properties to at least EPC* C by 2030.
*EPC stands for Energy Performance Certificate, and is something that everyone who sells or rents out a property needs to have. It allows buyers or tenants to get a good idea of how energy efficient the building is (and thus, how costly it’ll be to heat). The ratings run from A (very efficient) to G (inefficient), with the average UK home currently rated at D.
-
The Warm Homes Plan Taskforce is working in partnership with the Trades Union Congress to support the transition to high-quality roles in low-carbon sectors, projected to increase from 60,000 in 2023 to 240,000 in 2030.
-
The plan commits £7 million per year (for the next four years), to a Heat Training Grant alongside the Warm Homes Skills Programme which was launched last year to boost skills in insulation and solar installation.
-
The plan commits to spending £90 million in the next few years on a Heat Pump Investment Accelerator Competition, with the aim to ensure that by 2035 70% of the heat pumps installed in the UK are made in the UK.
Why does this matter?
Warm homes are not just a technical fix, but a climate necessity and a social justice issue.
Homes are responsible for around a fifth of the UK’s carbon emissions. We cannot tackle the climate crisis without transforming how we heat and power them. But most of us don’t have the money (or the permission) to upgrade our home energy systems. The Warm Homes Plan may be overdue, but it is bold and it is comprehensive, and it shows what’s possible when people power forces climate and fairness to the top of the political agenda.
Right now, millions of people are choosing between heating and eating, while fossil fuel companies continue to profit from our higher bills. The Warm Homes Plan starts to break that cycle — by cutting emissions, lowering bills, and reducing exposure to global gas prices at the same time.
This is exactly the kind of climate action we and our supporters have been demanding: solutions that cut carbon and improve lives. The scale and ambition of this plan show that people-powered campaigning works. When enough of us demand change, the government is forced to respond.
What’s next?
As mentioned, the Warm Homes Plan announced last week represents a huge win for people and the planet. If all goes to plan, it’ll mean tripling the number of rooftops with solar, getting hundreds of thousands of heat pumps set up in homes, creating 180,000 more jobs, and lifting 1.5 million people out of fuel poverty - all by 2030.
But that’s assuming it does all go to plan.
As with anything like this, delivery will be everything.
As part of the End Fuel Poverty Coalition, we are calling for a Warm Homes Guarantee which will mean every household can benefit from independent, trusted advice, guaranteed quality of work, strong consumer protections and a simple promise that people can believe in: after the upgrades, bills will go down. Make sure you join our mailing list for updates on this campaign including ways you can get involved.
Love what we’re doing?
At Possible, our vision is a zero carbon UK, built by and for everyone. We show people and politicians across the country that this is possible, and inspire practical action to make sure we get there at the speed required.
As a registered charity, we rely on donations from people like you.
If you can, please consider donating just £3 a month to support our work.