The UK’s Warm Homes Plan: £15bn Strategy Signals Major Shift Towards Low-Carbon Housing
The UK Government has today unveiled its Warm Homes Plan, a £15 billion national strategy designed to accelerate the rollout of low-carbon, energy-efficient homes across the country. The plan sits at the centre of the Government’s wider ambitions on clean power, decarbonisation and cost-of-living support, and is intended to upgrade up to five million homes over the coming years.
The announcement has been broadly welcomed across the heating, energy, housing and manufacturing sectors. Industry leaders have described the plan as a significant moment for clean heat and home energy efficiency, while also stressing that its success will depend on clear delivery mechanisms, long-term policy stability, and simple access to funding.
What the Warm Homes Plan Sets Out to Do
At its core, the Warm Homes Plan aims to reduce household energy bills, improve comfort and indoor air quality, and cut carbon emissions from the UK’s ageing housing stock. Key elements outlined by Government include:
£15 billion of investment into low-carbon and energy-efficient home upgrades
Continued and expanded support for heat pumps through the Boiler Upgrade Scheme
Increased deployment of solar PV, battery storage, insulation and smart controls
A requirement for solar panels on new-build homes from 2026
A stronger focus on ventilation and indoor air quality, alongside energy efficiency
New zero- and low-interest finance options, alongside free upgrades for low-income households
Creation of a Warm Homes Agency to support advice, quality and delivery
Greater powers for regional mayors to tailor delivery locally
Further details on eligibility, delivery timelines and scheme design are expected later this year, with additional announcements scheduled for Spring.
Official policy updates and future announcements can be tracked via the Department for Energy Security and Net Zero:
https://www.gov.uk/government/organisations/department-for-energy-security-and-net-zero
Strong Industry Support for Low-Carbon Heating and Whole-House Approaches
John Felgate, Managing Director of STIEBEL ELTRON UK, described the Warm Homes Plan as a “game-changing moment” for low-carbon housing. He welcomed the scale of investment and the clear signal that renewable heating technologies sit at the heart of future housing policy.
Felgate highlighted the importance of a joined-up, whole-house approach, combining heat pumps, solar PV, batteries, insulation, smart controls and ventilation. He also pointed to the plan’s recognition of indoor air quality as a critical, and often overlooked, element of healthy homes.
STIEBEL ELTRON’s perspective reflects a broader industry view that integrated systems, designed to work with time-of-use tariffs and renewable generation, will be essential to delivering long-term energy savings for households.
More information on low-carbon heating technologies can be found via the Energy Saving Trust: https://www.energysavingtrust.org.uk
Delivery Details and Policy Stability Remain Critical
While the ambition has been welcomed, several experts cautioned that operational clarity will be essential if the plan is to succeed at scale.
Stuart Hesk, Director of Heating at Hewer Facilities Management Ltd, emphasised that contractors need clear guidance on funding mechanisms, eligibility criteria and delivery timelines in order to invest confidently in training, workforce expansion and supply chains.
He also highlighted the uncertainty created by the ending of ECO4, noting that confirmation of the Boiler Upgrade Scheme running until 2030 provides welcome reassurance. Long-term policy continuity, he argued, will be vital if the target of upgrading five million homes is to be met.
Details on the Boiler Upgrade Scheme are available here: https://www.gov.uk/apply-boiler-upgrade-scheme
Supporting Low-Income Households and Social Housing at Scale
The Warm Homes Plan places significant emphasis on supporting low-income households and social housing residents, recognising the disproportionate impact of high energy bills on vulnerable groups.
Industry representatives have welcomed commitments to free upgrades for qualifying homes and measures designed to make clean energy technologies more accessible. When combined with solar PV and battery storage, retrofit heat pump solutions are increasingly being positioned as cost-competitive alternatives to gas boiler replacements, particularly where grant support is available.
Data on housing energy efficiency underlines the scale of the challenge. According to the Office for National Statistics, over 14.8 million UK homes (around 52%) currently sit at EPC band D or below.
https://www.ons.gov.uk
Electrification, Digitalisation and Grid Capacity
Layton Hill, Vice President of Strategy for UK and Ireland at Schneider Electric, framed the Warm Homes Plan as a clear signal of the UK’s commitment to Clean Power 2030 and wider economic decarbonisation.
Hill noted that electrification of heat is not only a climate strategy, but also a cost-of-living and jobs strategy. However, he stressed that domestic energy policy cannot operate in isolation. Increased electrical demand from heat pumps and electric heating systems must be matched by investment in electricity network capacity.
Forthcoming frameworks such as NESO’s Future Energy Scenarios and Ofgem’s RIIO-ED3 price control will play a critical role in enabling the necessary grid upgrades:
https://www.ofgem.gov.uk
https://www.neso.energy
Concerns Around the Private Rented and HMO Sectors
Some stakeholders have raised concerns that the Warm Homes Plan risks under-serving the private rented and shared housing sectors.
Vann Vogstad, Founder and CEO of COHO, warned that while landlords are referenced in the plan, practical incentives still appear weighted towards owner-occupiers. With over two million tenants living in house-sharing accommodation where energy bills are often included in rent, Vogstad argued that landlords must be meaningfully incentivised if carbon reductions are to be delivered at scale.
ONS data shows that average UK private rents increased to £1,368 per month in the year to December 2025, adding further pressure to the sector.
https://www.ons.gov.uk/economy/inflationandpriceindices
Manufacturers and Trade Bodies Call for Joined-Up Policy
Yselkla Farmer, CEO of BEAMA, welcomed the clarity provided by the Warm Homes Plan and the strong signal that the future of clean heat in the UK is electric.
However, BEAMA urged Government to align the plan with other forthcoming policies, including:
The Future Homes Standard
EPC reforms
The Smart Systems and Flexibility Plan
Wider incentives under the Home Energy Model
Farmer also echoed calls to address the “spark gap” – the price difference between electricity and gas – arguing that reducing electricity costs would be one of the strongest signals to encourage households to electrify heat.
Quality, Consumer Protection and Skills
Ian Rippin, CEO of MCS, welcomed the Warm Homes Plan’s focus on consumer choice and quality outcomes. He highlighted the importance of combining multiple technologies – such as solar, batteries and heat pumps – and confirmed that the Boiler Upgrade Scheme’s extension to 2030 provides much-needed certainty for the sector.
As installation volumes increase, Rippin emphasised that quality assurance and consumer protection will be critical. MCS’s redeveloped installer scheme, referenced in the plan, is expected to play a central role in maintaining standards, including for emerging technologies such as air-to-air heat pumps and thermal energy storage.
Further information on MCS standards and certification: https://mcscertified.com
A Clear Signal, With Delivery Still to Come
Overall, the Warm Homes Plan represents one of the most ambitious attempts to date to decarbonise the UK’s housing stock. Industry consensus suggests that the strategy sends a strong signal of intent and provides a platform for growth in clean heat, renewables, skills and manufacturing.
However, stakeholders are clear that ambition alone will not be enough. Detailed delivery frameworks, long-term policy stability, simple access to funding and coordinated infrastructure investment will determine whether the plan delivers lasting benefits for households, landlords and industry alike.
As further detail emerges in the coming months, the Warm Homes Plan will be closely watched as a defining test of the UK’s ability to turn decarbonisation policy into practical, large-scale delivery.