The Energy Saving Trust published a report on 17 April 2025 setting out what it says the UK Government needs to do to make the Warm Homes Plan work1. The charity's policy experts identified five pillars for long term success: information, advice and support; access to funding and finance; accelerating low carbon heat; making the plan long term and comprehensive; and supporting the supply chain1.
The report states that the UK Government has set itself a target of retrofitting 5 million homes across the UK over this parliament, backed by £13.2 billion in funding, of which £3.4 billion was allocated in the 2024 Autumn budget1. It says detail is still lacking on how most of the funding will be spent1. On the scale of the task, it cites Citizens Advice estimates that over 15 million homes across Great Britain can be classed as energy inefficient, with an EPC rating of C or below, and National Energy Action estimates that those in fuel poverty are paying up to £417 more per year for energy due to inefficient homes1.
Among the recommendations, the Trust calls for a national retrofit advice service in England, grants tiered by income that can be combined with zero or low interest loans, and grants covering the full costs of retrofit for those in fuel poverty1. It estimates that a service reaching all residents in England would cost in the low £10s of millions, depending on scope, and says that every £1 spent on expert, tailored advice returns almost £15 in lifetime savings for households advised through Home Energy Scotland2. It also reports that 49% of homeowners in England do not know where to get independent, impartial advice on home improvements, and 36% are not confident in assessing where to start2.
On low carbon heat, the report notes there were over 98,000 heat pump sales in the UK in 2024, which it says will need to increase to around 1.5 million by 2035 to be in line with the Climate Change Committee's Balanced Pathway1. It records 9,000 individuals completing a recognised heat pump qualification in 2024, up 15% from 2023 levels1. It also cites survey findings that 73% of British consumers surveyed stated they do not understand what a heat pump is, and 57% believed home insulation does not work well in older homes2.
The report's recommendations are not uniform across the UK. It lists a national awareness raising campaign and a national retrofit advice service as England only, noting that retrofit advice is already in place in Scotland, Wales and to some extent in Northern Ireland3. It lists UK government backed low or zero interest loans as UK-wide, removal of social and environmental levies from electricity bills as applying to Great Britain, and EPC reform as England and Wales3.
Why it matters for households
The report frames the Warm Homes Plan as the main route by which homes in the UK are upgraded, and its figures describe the gap between current activity and the stated target. For a household, the practical questions are what support exists, who qualifies and how to find impartial advice. The Trust's own survey figures suggest a large share of homeowners in England do not know where to get that advice, and that understanding of heat pumps is low2. Its proposal for income-tiered grants and full-cost grants for those in fuel poverty addresses the upfront cost barrier directly, while its call to consolidate government-backed support under one brand addresses how easy schemes are to find1. The report also notes that 81% of mid to low-income households living in the least energy efficient homes are not eligible for ECO, and that nearly 4 million UK homeowners have £0 to £100 left each month after essential bills2. On the running-cost side, it cites clean home upgrades saving households up to £800 a year, and bringing all fuel poor homes to EPC C by 2030 saving households an average of £480 on annual energy bills4.
What happens next
The report calls on the UK Government to consult on the role of hydrogen for domestic heating in 2025 and make a clear decision before 2026, and to commit to a 2035 phase out date for the installation of new fossil fuel boilers3. It also seeks clarity on whether the previous UK Government's 600,000 annual heat pump installation target still stands, and additional installation targets beyond 20283. No government response to the report has been reported.
Sources4 cited
- What the UK needs to get the Warm Homes Plan right - Energy Saving Trust, energysavingtrust.org.uk
- What the UK needs to get the Warm Homes Plan right - Energy Saving Trust, energysavingtrust.org.uk
- What the UK needs to get the Warm Homes Plan right - Energy Saving Trust, energysavingtrust.org.uk
- What the UK needs to get the Warm Homes Plan right - Energy Saving Trust, energysavingtrust.org.uk