Briefing: New £15bn Warm Homes Plan announced as Government confirms ‘Biggest Home Upgrade Programme in British History’

On 20 January 2026, the UK Government published the long‑awaited Warm Homes Plan, setting out a £15 billion national programme to upgrade the energy efficiency of millions of homes across the country. The announcement was accompanied by further details in the official press release titled “Families to save in biggest home upgrade plan in British history”.

Together, the publications outline the most comprehensive package to date aimed at reducing household energy costs, improving thermal performance across all tenures, and supporting the transition to clean heating technologies.

The Government has described the Plan as the largest public investment in home upgrades in UK history, with the intention of delivering energy improvements to up to 5 million homes by 2030 and helping lift up to one million families out of fuel poverty. 

A written ministerial statement issued on 21 January 2026 confirms that the Warm Homes Plan forms part of a broader energy affordability and fuel poverty strategy, including updated regulatory measures for both landlords and homeowners.

Overview of the Warm Homes Plan

The Plan is structured around three main pillars:

1. Fully funded upgrades for low‑income households

A £5 billion ring‑fenced fund will deliver free energy‑efficiency improvements for eligible low‑income families. These tailored packages may include:

• insulation
• rooftop solar panels
• home battery storage
• low‑carbon heating systems (including heat pumps)

The Government notes that typical solar‑and‑battery installations costing £9,000–£12,000 will be covered in full where appropriate. In social housing, upgrades may be delivered at street‑scale or estate‑scale to reduce cost and disruption. 

This intervention sits alongside updated fuel‑poverty commitments aimed at lifting 1 million households out of fuel poverty by 2030. 

2. A universal offer for all households

For homes outside the low‑income bracket, the Government will introduce:

• government‑backed zero‑ and low‑interest loans for installing solar panels, batteries and heat pumps
• continuing access to a £7,500 heat‑pump grant
• the first air‑to‑air heat pump grant, allowing cooling during summer months
• a “rooftop solar revolution” strategy aimed at tripling the number of homes with solar panels by 2030 

Additionally, new‑build homes from early 2026 will require solar panels as standard under the Future Homes Standard. 

3. New protections and standards for renters

Approximately 1.6 million children live in private rented homes affected by cold, damp or mould. Under the Warm Homes Plan, landlords (private and social) will be required to bring their properties up to minimum energy‑efficiency standards by 2030, with a phased compliance period. 

The Government estimates that these measures could lift around half a million renting families out of fuel poverty by the end of the decade. 

Warm Homes Agency: New national delivery body

A new Warm Homes Agency will be established to administer schemes that are currently split across multiple government departments and Ofgem. The Agency will centralise:

• consumer advice
• scheme oversight
• delivery functions for energy‑efficiency programmes

Officials from Ofgem will transfer into the new Agency to streamline processes, reduce duplication and improve customer experience. 

Anticipated economic and industry impacts

The Plan is positioned to create up to 180,000 skilled jobs by 2030, particularly in insulation, clean heating, solar installation and manufacturing. The Government aims for 70% of UK‑installed heat pumps to be manufactured domestically. 

For contractors and suppliers, the Department for Energy Security and Net Zero has signalled a decade‑long pipeline of retrofit work backed by public funding. 

Financial support already announced

The Plan builds on earlier cost‑of‑living measures, including:

• an average £150 reduction to household energy bills from April 2026
• the £150 Warm Home Discount for around 6 million households
• a combined package of £300 in immediate bill support for eligible families 

Key messages from Government

• Prime Minister Keir Starmer described the initiative as a turning point that will “help to slash energy costs and lift up to a million people out of fuel poverty”.
• Energy Secretary Ed Miliband emphasised that millions still lack warm, safe and affordable homes, calling the programme a “national project to turn the tide”. 

Implications for the housing sector

The Plan has been welcomed by sector representatives. The National Housing Federation has highlighted that the changes will allow social housing providers to invest in upgrades “at scale and pace”, offering long‑term certainty and improved outcomes for residents. 

For landlords and registered providers, the strengthened regulatory framework and availability of funding is expected to drive:

• large‑scale retrofit programmes
• earlier compliance with energy‑efficiency requirements
• improved conditions for tenants, particularly around damp, mould and heat loss (and which can therefore be seen as a tangible tool with which organisations can continue to engage with the tenets of Awaab’s Law).

Conclusion

The Warm Homes Plan marks a substantial shift in national energy‑efficiency policy, combining regulatory reform, infrastructure investment and targeted support. Registered Providers of social housing, local authorities, private landlords and developers will need to prepare for:

• expanded funding opportunities
• strengthened renter protection duties
• higher construction and retrofit standards
• the operational impacts of the new Warm Homes Agency

Devonshires will continue to issue specialist briefings as further detail becomes available, including scheme guidance, regulatory updates and implications for asset management and housing‑finance strategies.

In the meantime, please contact us if you would like to discuss these announcements further.