UK launches GBP15bn Warm Homes Plan to cut energy bills across Britain

The British government unveiled a GBP15bn plan on January 21 to upgrade up to 5mn homes with solar panels, heat pumps, batteries and insulation that could save households hundreds of pounds on energy bills and lift up to one million families out of fuel poverty by 2030, the government announced.

Analysts forecast 300,000–500,000 upgrades in the first full year (2026–27) if take‑up mirrors early signals, potentially lifting 1mn families out of fuel poverty faster than prior fragmented efforts.

The Warm Homes Plan includes GBP5bn in direct support for low-income households, who could receive fully funded installations of solar panels and batteries worth up to GBP12,000.

The scheme also introduces government-backed zero and low-interest loans for homeowners to install clean energy technologies, alongside new requirements for all new homes to include solar panels by early 2026.

Prime Minister Keir Starmer said the plan "marks a turning point" for energy affordability. "By driving bills down for good and upgrading millions of homes, we're giving people the security and the fair shot they need to get on in life," he said.

Energy Secretary Ed Miliband said it was "a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe." The plan aims to triple the number of homes with solar panels by 2030 and includes a GBP7,500 universal grant for heat pumps.

The programme includes updated protections for renters, with new rules requiring landlords to upgrade properties over several years. An estimated half a million families will be lifted out of fuel poverty through these measures by the end of the decade, according to the government.

The government said home insulation installations fell by more than 90% between 2010 and 2024, leaving millions of households exposed to higher energy bills.

The plan also aims to create 180,000 jobs in energy efficiency and clean heating by 2030, with at least 70% of heat pumps installed in the UK to be manufactured domestically.

A new Warm Homes Agency will consolidate existing government functions to simplify access to upgrades, whilst local mayors will lead rollout in their regions. The plan is expected to unlock GBP38bn in total investment across Parliament.

According to previous reports, UK rooftop solar installations peaked at 206,000 certified units in 2025, up on the previous peak in 2011, when the previous Labour government offered a feed-in tariff, which was popular at the time, Mcscertified reported.