Lenders and finance houses have thrown their weight behind a government scheme to upgrade energy efficiency standards for the poorest households in the UK.
The Warm Homes Plan, unveiled overnight, will deliver £15 billion of public investment, rollout upgrades to up to five million homes, and help to lift up to a million families out of fuel poverty by 2030.
The programme will create 180,000 jobs in energy efficiency and clean heating by 2030.
Homeowners will eventually be able to apply for government-backed, low and zero interest loans to install solar panels – unleashing a “rooftop revolution”.
These loans will also be available for batteries and heat pumps, making it easier than ever for every home to access clean energy technologies that can lower bills.
Low-income households and those in fuel poverty could receive support that would cover the full cost of having solar panels put on their rooftop, or insulation installed, alongside new rules to ensure landlords invest in upgrades to cut bills for renters and social tenants.
Few practical details have been released wit the government planning further announcements later in 2026 after further discussions with lenders.
Energy Secretary Ed Miliband says: “It is a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe. “With this investment, we embark on a national project to turn the tide – waging war on fuel poverty and taking another step forward in tackling the affordability crisis for families throughout Britain.”
David Postings, chief executive of UK Finance says: “Upgrading the UK’s housing stock is essential to meeting our net zero goals, and boosting consumer demand is critical to unlocking private finance at scale.
“The new Warm Homes Plan is a welcome step forward, offering a package of support to help homeowners meet retrofit costs.
“The financial services sector will work with government, alongside other industries, to accelerate the growth of the green home finance market and help ensure households across the country can share in the benefits of the net zero transition.”
And Charlie Nunn, chief executive of Lloyds Banking Group, adds: “We are committed to helping ensure that homes across the UK are warm, affordable and energy efficient.
“This will require sustained collaboration between government, industry and civil society, and I look forward to working together to mobilise the finance, innovation and partnerships needed to support more resilient and energy efficient homes.”
The government says there are three planks to the plan:
- DIRECT SUPPORT FOR LOW-INCOME FAMILIES
- Low-income households will receive free of charge packages of upgrades, depending on what technologies are most suitable for their homes- backed by £5 billion of public investment.
- For example, families could receive fully funded installations of solar panels and a battery, to the full average cost (currently £9,000-£12,000).
- For social housing residents, this could mean upgrades to entire streets at the same time, lowering bills and improving warmth and comfort for whole neighbourhoods.
- AN OFFER FOR EVERYONE
- The government-backed, zero and low interest loans programme to get solar panels onto the nation’s rooftops and new rules that mean every new home will come with solar panels by default.
- This plan will triple the number of homes with solar panels on their rooftops by 2030.
- Making it easier for anyone who wants to get a heat pump, with a £7,500 universal grant for heat pumps, and the first ever offer for “air-to-air heat pumps” that can also cool homes in the summer.
- NEW PROTECTIONS FOR RENTERS:
- Today, 1.6 million children live in private accommodation suffering from cold, damp, or mould.
- The government believes in a simple principle that if you rent a home, private or social, a landlord has a responsibility to ensure that it is safe, warm, and affordable.
- By updating protections for renters, and supporting landlords to make these upgrades in a fair way over several years, an estimated half a million families will be lifted out of fuel poverty by the end of the decade.
E
