The House of Lords debated the government's Warm Homes Plan on 27 January 2026, following a statement made in the House of Commons on 21 January1. The plan allocates £15 billion to home upgrades, described in the statement as a more than doubling of public investment compared with the last Parliament and the biggest such investment in British history1.
The statement set out several measures. It confirmed £5 billion of public investment to deliver home upgrades for low-income families in social housing and among low-income owner-occupiers, and the abolition of the Energy Company Obligation (ECO) scheme, with support to be funded through public investment rather than levies on bills1. On rented homes, it said private landlords will have to upgrade properties to meet minimum energy efficiency standards by 2030, with similar rules consulted on for the social rented sector1. The Warm Homes Plan guide sets out what the package covers for households.
On heating, the statement announced an expanded Boiler Upgrade Scheme, with a universal offer of £2,500 for a heat battery or air-to-air heat pump and £7,500 for a conventional heat pump1. Up to £2 billion is set aside to subsidise zero and low-interest loans for solar panels, batteries and other technologies, with a further £3 billion available through the warm homes fund1. The statement also said solar panels will be fitted as standard in new homes under the future homes standard, and that a new warm homes agency will be established by consolidating functions from Ofgem and other organisations and abolishing Salix1.
"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"
Peers raised several concerns. One said the impact assessment contained no reference to the effect on tenants of requirements placed on landlords, and asked whether those costs would be passed on1. Another said 50% of the British public are unlikely to install low-carbon systems such as heat pumps because of high installation costs, and that two-thirds of people with heat pumps now find it more expensive to heat their homes than with their previous system1. A peer also asked for an estimate of the cost of the new agency and the net cost of the reorganisation, saying the abolition of Salix is not a like-for-like trade-off1. Concerns were also raised about the six-month gap between schemes, solar supply chain forced labour, and the running costs of heat pumps1.
Why it matters for households
The plan changes how home upgrade support is funded and delivered. The grants and schemes hub covers the routes available. The shift away from ECO to public investment, and the creation of a new agency, affect where households apply and who administers support1. The £2,500 and £7,500 offers under the Boiler Upgrade Scheme are universal, meaning they are not means-tested1. Eligibility rules, including for homes with gas boilers, are set out in the Boiler Upgrade Scheme eligibility guide.
For renters, the 2030 minimum standards for private landlords could affect the energy performance of rented homes, though peers noted the impact assessment did not address whether upgrade costs would reach tenants1. For homeowners, the loan subsidy for solar and batteries is aimed at cutting bills through self-generation, but the debate recorded disagreement over whether heat pumps reduce running costs, with electricity priced at a multiple of gas per unit1.
What happens next
The statement said the future homes standard will be published shortly1. The Minister for Energy Consumers will convene a working group of contractors, social housing providers and local authorities1. A task force with the TUC will be established on jobs1. No date has been reported for the establishment of the warm homes agency or for the publication of the future homes standard beyond "shortly"1.
Sources1 cited
- Warm Homes Plan - Hansard - UK Parliament, hansard.parliament.uk