The government has launched its £15bn Warm Homes Plan with plans to roll out upgrades to five million homes.

The plans aims to upgrade properites, help families cut their energy bills and tackle fuel poverty – lifting up to a million families out of fuel poverty by 2030. Millions of families will benefit from solar panels, batteries, heat pumps and insulation that can cut costs.

It includes targeted interventions for those on low incomes; upgrades for social housing; new protections for renters and a universal offer for all households to upgrade homes if and when they want to.

In the Budget the government said it was taking an average of £150 of costs off energy bills from April, plus around six million households will receive the £150 Warm Home Discount - a total package of £300.

Under the new plan homeowners will be able to apply for government-backed, low and zero interest loans to install solar panels. These loans will also be available for batteries and heat pumps, making it easier for homes to access clean energy technologies that can lower bills. Low-income households and those in fuel poverty could receive support that would cover the full cost of having solar panels put on their rooftop, or insulation installed, alongside new rules to ensure landlords invest in upgrades to cut bills for renters and social tenants.

Prime minister, Keir Starmer, said: “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain. Today’s plan marks a turning point. It will help to slash energy costs and lift up to a million people out of fuel poverty.”

The plan is backed by £15bn government investment, including allocations for devolved governments in Scotland, Wales and Northern Ireland.

It also includes measures to ensure new homes are built cheaper to run, with solar panels as standard, with the Future Homes Standard to be implemented in early 2026. 

The three pillars of the programme are:

Direct support for low-income families
Low-income households will receive free of charge packages of upgrades, depending on what technologies are most suitable for their homes - backed by £5bn of public investment

An offer for everyone
The government-backed, zero and low interest loans programme to get solar panels onto the nation’s rooftops and new rules that mean every new home will come with solar panels by default. This plan will triple the number of homes with solar panels on their rooftops by 2030. Making it easier for anyone who wants to get a heat pump, with a £7,500 universal grant for heat pumps, and the first ever offer for ‘air-to-air heat pumps’ that can also cool homes in the summer

New protections for renters
By updating protections for renters, and supporting landlords to make these upgrades in a fair way over several years, an estimated half a million families will be lifted out of fuel poverty by the end of the decade

The news has been welcomed by the Association for Consultancy and Engineering (ACE). Ben Brittain, director of public affairs at ACE, said: “This is a serious plan that finally recognises the scale of the challenge. With £15bn for retrofit, a clear pathway to a single low-income scheme and a million households lifted out of fuel poverty by 2030, this shows real intent. This isn’t about warm words, it’s about delivery.

“By backing British manufacturing, skills and supply chains, this plan cuts bills while driving jobs and growth. It gives industry the confidence to invest and scale at pace and our members will match this pace in delivery.”

​Dhara Vyas, chief executive of Energy UK, said a £15bn investment was a “substantial commitment”.

“Supporting better access to clean heat systems, solar panels, batteries and other low-carbon technologies will help millions of households across the UK bring down their energy bills. It’s great to see the plan has an offer for all households with substantial grants for clean heat solutions and affordable finance options for various low-carbon technologies, as well as fully funded measures for fuel poor and low-income homes. 

“The Warm Homes Plan also provides certainty to investors and businesses in the energy market, and will drive growth, supporting the creation of thousands of good jobs across the country.”