The Government has launched its Warm Homes Plan, promising £15 billion in public investment to upgrade up to 5 million homes by 2030. The proposals cover owner-occupied homes as well as both private and socially rented homes. The main elements are:
- £2.7 billion for a Boiler Upgrade Scheme open to home owners and private landlords to provide grant support up to £7500 for heat pump installation;
- £2.7 billion in zero- and low-interest loans to owner-occupiers for installation of solar panels, heat pumps, battery storage, smart controls and home insulation; the Government will issue a Call for Evidence to identify parts of the housing market where the WHF can deliver the greatest impact.
- £5 billion for support for households in fuel poverty, including social tenants. This will initially be delivered to social tenants via the Warm Homes Social Housing Fund and to private tenants via Warm Homes Local Grant, but from 2027/28 these will be consolidated into a single scheme for low-income households. More details of these arrangements will be published by Spring 2026.
- £1.1 billion for heat networks to provide district heating in urban areas.
The Plan also reports the outcome of consultation on a Minimum Energy Efficiency Standard for the private rented sector. Homes will be expected to meet the updated EPC Band C by October 2030 across two metrics unless an exemption applies; landlords will be able to choose between the heat and smart-readiness metrics. Homes will be exempt if compliance costs more than £10,000 or 10% of the property’s value. Homes which meet EPC C by October 2029 will be considered compliant until that certificate expires. The outcome of consultation on the MEES for social housing is not included in the Warm Homes Plan but has been announced separately on 28 January.
The Government has announced that outcome of consultation on the Future Homes Standard will be published in Q1 2026 and implemented through regulations. This is expected to require low-carbon heating, high levels of energy efficiency and solar panels by default.
The Plan also includes the establishment of a Warm Homes Agency to support the delivery at scale of the envisaged heating upgrades, particularly heat pumps, and a Workforce Taskforce to develop the necessary workforce skills, with the ambition that 70% of heat pumps should be locally manufactured by 2035.
