The Department for Energy Security and Net Zero published the Warm Homes Plan on 21 January 2026, setting out £15 billion of public investment to upgrade up to five million homes and help lift up to a million families out of fuel poverty by 20301. The department said the plan would "roll out upgrades to up to 5 million homes" and "help to lift up to a million families out of fuel poverty by 2030"1. The Warm Homes Plan guide sets out what the programme covers for households.
The plan has three stated pillars. For low-income families it commits £5 billion of public investment, with fully funded packages that could include solar panels and a battery to the full average cost, currently £9,000 to £12,0001. For all households it offers a £7,500 universal grant for heat pumps, and the government said homeowners will be able to apply for government-backed low and zero interest loans for solar panels, batteries and heat pumps1. The Energy Secretary told the Commons that the government is "for the first time ever, setting aside up to £2 billion to subsidise zero and low-interest loans for solar panels, batteries and other technologies"3. For renters, the government said private landlords will have to meet minimum energy efficiency standards by 20303.
The Commons Library briefing of 13 May 2026 gives the funding breakdown: over £5 billion for low-income consumers by 2030, comprising over £4.4 billion grant funding plus £600 million from the Warm Homes Fund, and a Warm Homes Fund totalling £5 billion in financial transactions, including £1.7 billion already allocated to consumer loans supported by £300 million of capital investment2. It states that details of the consumer loan offer were not available at the time of writing, with the government saying it would set out further detail "in due course"2.
The government said the plan is backed by £15 billion, including allocations for the devolved governments1. The Commons Library briefing records that the Warm Homes Plan includes the existing Warm Homes: Local Grant, Warm Homes: Social Housing Fund and Boiler Upgrade Scheme, and that the Energy Company Obligation closes at the end of 2026 while the Great British Insulation Scheme closed in March 20262. The Boiler Upgrade Scheme provides upfront grants of up to £7,500, increased to £9,000 for oil and LPG heated properties2.
"For the first time, we have a universal offer of £2,500 for a heat battery or air-to-air heat pump, as well as £7,500 to install a conventional heat pump"
On rented homes, Rent Smart Wales states that the existing requirement for private rented sector properties in Wales to meet EPC E will be replaced with a higher standard equivalent to EPC C by 1 October 2030, with all tenancies on the same deadline and landlords required to invest up to £10,000 per property4. The Commons Library briefing records a £30,000 cap for the first property a landlord upgrades, split £15,000 for energy efficiency measures and £15,000 for low-carbon heating2.
Why it matters for households
The plan sets out two routes: fully funded upgrades for low-income households, and grants plus loans for everyone else. For a household weighing up a heat pump, the stated universal grant is £7,500, with £2,500 for a heat battery or air-to-air heat pump3. For solar, the government said it will "triple the number of homes with solar panels on their rooftops by 2030" and that new homes will come with solar panels by default under the Future Homes Standard, to be implemented in early 20261. The Future Homes Standard carbon reduction guide covers what that means for new-build emissions.
For renters, the practical change is a minimum standard rather than a grant: the deadline for private landlords is 20303. The government said these measures alone will lift more than half a million families out of fuel poverty3. The Lords debate recorded concerns that landlord costs could be passed to tenants and that the impact assessment did not reference the impact on tenants3. The government also said it is "abolishing the failed ECO scheme" and funding support through public investment rather than levies on bills3.
What happens next
The Commons Library briefing states that the Warm Homes Agency will begin "initial operations" in 2027, with Salix closing and its functions, alongside some from DESNZ and relevant roles in Ofgem, brought into a single executive agency2. It records that the government will consult this year on bringing oversight of energy efficiency and microgeneration installations under closer government control and on the role of the agency2. The government said it will set out more detail later this year on how consumers will access low-interest loans1. The DESNZ page covers the department responsible.
Sources4 cited
- Families to save in biggest home upgrade plan in British history - GOV.UK, gov.uk
- [](https://researchbriefings.files.parliament.uk/documents/CBP-9585/CBP-9585.pdf), researchbriefings.files.parliament.uk
- Warm Homes Plan - Hansard - UK Parliament, hansard.parliament.uk
- Energy efficiency standards - Rent Smart Wales, rentsmart.gov.wales