Government unveils Warm Homes Plan
A significant government funding boost for retrofits and clean heating
Homeowners across the UK are set to benefit from a significant £3.2 billion investment announced as part of the government’s Warm Homes Plan. This funding will support upgrades to 300,000 homes, making them more energy-efficient and better prepared for a low-carbon future.
Key highlights from the Warm Homes Plan
This substantial funding will be spread across several initiatives aimed at improving energy efficiency and promoting clean heating systems:
- Warm Homes: Social Housing Fund: £374 million in grant funding for Wave 3 will help upgrade up to 60,000 homes, with co-funding from social housing providers.
- Warm Homes: Local Grant Scheme: £88 million will support improvements in up to 9,000 homes.
- Boiler Upgrade Scheme (BUS): The scheme’s budget has been increased to £295 million for next year, funding up to 39,000 heat pump installations.
- ECO4 and Great British Insulation Scheme (GBIS): Supplier-led schemes are expected to upgrade up to 200,000 homes, based on recent delivery statistics and projected growth.
Why this is good news for homeowners
For many households, the cost of heating is a significant burden. The Warm Homes Plan is designed to address this by improving the energy efficiency of homes, lowering energy bills, and reducing carbon emissions.
Minister for Energy Consumers Miatta Fahnbulleh explained: “The idea at the heart of our Warm Homes Plan is a simple one – all families deserve the security of a home they can afford to heat.”
With the Boiler Upgrade Scheme, homeowners can now access up to £7,500 toward installing a heat pump—part of a broader push to decarbonise heating systems. Coupled with relaxed planning rules for heat pumps starting next year, these changes make cleaner heating more accessible and practical than ever.
A step toward a sustainable future
The plan doesn’t just focus on heating. By increasing energy efficiency standards for rental properties and new heating systems, it lays the foundation for long-term sustainability. It’s also a significant step toward addressing fuel poverty, as more households will benefit from warmer, more efficient homes.
This initiative demonstrates a commitment to making the UK’s homes more comfortable, affordable, and environmentally friendly. Whether it’s through grants for social housing, local schemes, or incentives for private homeowners, the Warm Homes Plan provides opportunities for everyone to benefit from the energy transition.
Looking ahead
With funding in place and reforms like the Clean Heat Market Mechanism set to relaunch in 2025, the Warm Homes Plan signals a bold move toward achieving the UK’s net-zero goals. It’s a win for homeowners, the environment, and future generations.
For more detailed information, read the government’s response to the Clean Heat Market Mechanism consultation.
Whether you’re the “hold out as long as possible” type or someone who loves to be toasty the moment the temperature drops, getting your heating strategy right can make all the difference. It’s about creating a home that’s snug, energy-efficient, and prepared for whatever the weather throws your way—all while keeping energy bills in check and reducing your carbon footprint.
Making your home warm and efficient
Looking to upgrade your home? We have a free advice tool designed to give you a snapshot of your home’s energy-saving potential. It provides tailored guidance to fit your needs and budget, backed by honest, expert advice—no hard sell. Alternatively call 0330 223 2742, and one of our friendly team members will walk you through your options.