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Northern Ireland announces Warm Healthy Homes Fund launching 2027

Northern Ireland's Department for Communities has opened a consultation on a Warm Healthy Homes Fund, due to launch in 2027 with £150 million of investment over its first five years.

A newspaper on a kitchen table beside a model of grants and schemes

The Northern Ireland Executive published its Warm Healthy Homes Strategy 2026 to 2036, a new fuel poverty strategy for Northern Ireland, on 5 February 20261. The strategy includes a commitment to launch a Warm Healthy Homes Fund in 2027, and the Department for Communities has opened a consultation on the scheme's design1.

The Fund will aim to deliver £150 million of investment over its first five years1. The consultation document describes it as the Department's "principal long-term sustainable solution to fuel poverty", replacing the Affordable Warmth Scheme, which was introduced in September 2014 and has installed more than 56,000 energy efficiency measures in over 31,000 low-income households1.

"The Fund will aim to deliver £150 million of investment over its first five years and will learn from the lessons and experience gained from the Affordable Warmth Scheme and similar schemes across the devolved nations."
Gordon Lyons MLA, Minister for Communities, Department for Communities consultation document1

The proposed scheme would be open to owner-occupiers and would provide some assistance to private rented sector tenants. It would not be available to Northern Ireland Housing Executive, social housing or housing association tenants, nor to holiday or second homes, bed and breakfasts, short-term lets or commercial establishments1. Eligibility would be limited to households below an income threshold set at the National Living Wage rate per hour multiplied by 45 hours and by 52 weeks, currently £29,741 net of tax and national insurance, rising annually in line with the National Living Wage1. Households receiving the Personal Allowance element of Universal Credit for three consecutive payment periods, and those receiving Pension Credit, would also be eligible1. The Department proposes to prioritise properties rated EPC E or below1.

The Fund would take a "whole-house", fabric-first approach, with loft and cavity wall insulation, draught proofing and ventilation mandatory for all properties except where a Home Assessment finds existing standards acceptable1. Heating solutions, including low-carbon heat where appropriate, and renewable technologies would also be offered1. No customer contribution would be allowed1.

Why it matters for households

Northern Ireland's fuel poverty rate is measured differently from the rest of the UK: a household is fuel poor if it needs to spend 10% or more of its income on energy to maintain a satisfactory heating regime, with 15 to 20% classed as severe and above 20% as extreme1. The most recent modelled estimate, using 2016 baseline data as reported in the NI House Condition Survey, put fuel poverty at 24% in 20211. Polling commissioned by National Energy Action Northern Ireland and conducted by LucidTalk in September 2025 found 39% of households were spending over 10% of their household income on heating and electricity2. The two figures are not directly comparable: one is a modelled estimate, the other self-reported polling.

For a household in the owner-occupied or private rented sectors on a low income, the Fund is the proposed route to insulation, draught proofing and heating measures at no cost, with the mandatory insulation-first rule shaping what work is done and in what order. Private tenants would need their landlord's consent and the landlord must be registered on the Landlord Registration Scheme1. The strategy also commits to improved monitoring and reporting on fuel poverty, including an annual Ministerial statement2. NEA NI said it welcomed the strategy but expressed disappointment at the absence of a clear, overarching target for reducing fuel poverty2.

What happens next

The consultation closes at 23:59 on 19 August 2026, after a twelve-week public consultation1. The Fund is due to launch in 20271. The strategy sits alongside the UK Government's £15 billion Warm Homes Plan, from which Northern Ireland will receive Barnett consequential funding2.

Sources2 cited
  1. Warm Healthy Homes Fund, communities-ni.gov.uk
  2. Publication of new NI Fuel Poverty Strategy alone won’t lead to lasting change - National Energy Action (NEA), nea.org.uk