Warm Homes Plan promises to cut energy bills

Plan mandates that landlords in the private rented sector must upgrade their properties to meet Energy Performance Certificate (EPC) Band C by 2030

Households will be eligible for thousands of pounds' worth of solar panels and other green technology upgrades aimed at addressing the long-term issue of energy affordability, says the government.   

Home insulation installations for clean energy products fell by more than 90% between 2010 and 2024. The Warm Homes Plan promises to provide £15bn to households across the UK over the next five years via low-interest loans and grants, while new rules will also ensure that landlords invest in upgrades to cut bills for renters and social tenants.

The Plan, first outlined in 2024, will focus on funding solar panels — with the aim of tripling the number of homes with solar — heat pumps and batteries for UK households. For an average three-bedroom semi-detached house, the government estimates that installing these three technologies could save £500 annually on energy bills.

The government will set out more detail later this year on how consumers will be able to access the loans and grants.

Adam Scorer, Chief Executive at National Energy Action, said, “People struggling in fuel poverty desperately need the Warm Homes Plan. Cheaper energy costs, efficient heating systems and homes that keep the warmth in are all essential for the plan to succeed.” He added that “there is a lot of work to be done,” but said the commitment “to lift a million households out of fuel poverty is a welcome, landmark occasion.” 

The Plan means low-income families could receive fully funded installations of solar panels and a battery to the full average cost (currently £9,000-£12,000), while all incomes can benefit from zero and low interest loans, such as a £7,500 universal grant for heat pumps.  

It also includes measures to ensure that new build homes are cheaper to run, including solar panels as standard, with the Future Homes Standard to be implemented in early 2026.  The Plan also has the potential to strengthen the UK’s energy security by reducing reliance on gas.  

CIEH welcomed the Plan’s confirmation that landlords in the private rented sector will need to upgrade their properties with clean energy products to meet Energy Performance Certificate (EPC) Band C by 2030. 

“EHPs are in the front line of protecting the public from this and other hazards caused by poor housing and thereby reducing ill health and saving lives.”

Zena Lynch, a member of the Housing Advisory Panel, CIEH said, “Cold homes are one of the leading public health threats of our times. Environmental health practitioners are in the front line of protecting the public from this and other hazards caused by poor housing and thereby reducing ill health and saving lives.”

Stew Horne, Group Head of Sector Intelligence and External Affairs, Energy Saving Trust, said, “For households looking to upgrade their homes, tackling high upfront costs is a key challenge. It’s positive that the Boiler Upgrade Scheme will continue to support people to install low carbon heating.”

He added that confirmation of UK government backed loans is another “significant step” towards making home upgrades more affordable. “Low carbon technologies are the foundation of a cheaper, cleaner energy future and are what will ultimately bring bills down permanently. Now that the Plan is published, the priority must be rapid, scaled‑up delivery so households across the UK can feel the benefits of clean power as soon as possible.” 

The government has also announced the extension of the Warm Home Discount scheme for a further five years, meaning around six million low-income households will continue to receive £150 off their winter energy bills.