UK Unveils £15 Billion Warm Homes Plan For 2030

The UK government has unveiled its long-awaited Warm Homes Plan, a sweeping initiative designed to transform the country’s housing stock, cut energy bills, and combat fuel poverty. Announced on January 21, 2026, the plan commits £15 billion in public investment to upgrade up to five million homes by 2030, with a particular focus on supporting low-income families and promoting the adoption of green technologies like solar panels, batteries, and heat pumps.

Prime Minister Keir Starmer, introducing the plan, declared, “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain. Today’s plan marks a turning point. It will help to slash energy costs and lift up to a million people out of fuel poverty.” According to the BBC, the government’s goal is nothing short of a “rooftop revolution,” aiming to triple the number of homes with solar panels by 2030 and make solar installations standard on new builds under the Future Homes Standard, which will come into effect in early 2026.

The plan’s measures are broad and ambitious. Homeowners will be able to apply for government-backed low and zero-interest loans to install solar panels, batteries, and heat pumps. For low-income households and those in fuel poverty, the government will cover the full cost of rooftop solar installation, with an additional £600 million set aside to ensure that support reaches those most in need. A universal grant of £7,500 will be made available for heat pumps, and an air-to-air heat pump offer will help cool homes during increasingly hot summers—a nod to the changing climate and the need for year-round comfort.

Renters are also set to benefit. New rules, effective from 2030, will require landlords to upgrade their properties to a minimum energy efficiency score of EPC C, up from the current E rating. This is expected to bring significant relief to tenants who have long struggled with high bills and cold, inefficient homes. However, the government acknowledged that the current system for assessing EPC scores is flawed—sometimes downgrading homes after heat pump installations due to outdated cost-based metrics—and has promised to revise the assessment process later this year.

Energy Secretary Ed Miliband emphasized the plan’s role in tackling the cost-of-living crisis, telling BBC Breakfast: “The cost of living crisis is the biggest issue the country faces. Upgrading homes is a crucial part of getting bills down.” He added, “We are swapping reliance on imported gas... for homegrown clean power where we control the price.” This sentiment was echoed by industry leaders and climate advocates, who see the Warm Homes Plan as a critical step in reducing the UK’s dependence on volatile fossil fuel markets—a vulnerability exposed by the surge in gas prices following Russia’s invasion of Ukraine.

The plan’s announcement was met with strong support from across the energy and finance sectors. Adam Scorer, Chief Executive at National Energy Action, called it “a welcome, landmark occasion,” stressing the urgent need for cheaper energy, efficient heating, and homes that retain warmth. Charlie Nunn, CEO of Lloyds Banking Group, highlighted the necessity of collaboration between government, industry, and civil society, while Kirsty Britz of NatWest Group praised the plan for unlocking much-needed finance and support for households struggling with high bills.

Workers’ unions and environmental groups also hailed the initiative. Kate Bell, Assistant General Secretary of the TUC, said, “No family should live in cold, damp or mouldy conditions. We all know our winters are getting colder with climate change. Finally, we have a government pledging to deliver the millions of home upgrades that the British public need.” Meanwhile, Ed Matthew of climate think tank E3G pointed out the national security benefits: “The increase in oil and gas prices following the Russian invasion of Ukraine cost the UK £183 billion, three times the UK’s annual defence budget. It is time to cut our dependence on fossil fuels and the dictators who are profiting from them.”

Industry leaders see the plan as a catalyst for innovation and job creation. The government expects the scheme to contribute to 180,000 new jobs in the clean heating sector—though some will come from retraining existing engineers. Chris O’Shea, CEO of Centrica, described the plan as “a vital opportunity to accelerate the uptake of game-changing technologies,” while Greg Jackson of Octopus Energy asserted, “Electrifying homes is the best way to cut bills for good and escape the yoyo of fossil fuel costs.”

Despite the widespread praise, the plan has not been without its critics. The Conservative Party warned that the scheme could “saddle households with high ongoing running costs,” especially given that electricity prices in the UK remain among the highest in Europe due to network upgrades, government taxes, and wholesale market pressures. Richard Tice of the Reform Party went further, calling the investment “a scandalous waste of up to £15bn of taxpayers’ cash primarily buying Chinese made solar panels, batteries and heat pumps, that is bad for British industry.” According to HMRC data cited by the BBC, two-thirds of solar panels imported by the UK in 2024 came from China. Ed Miliband responded that efforts were underway to diversify supply chains and reduce reliance on imports.

The plan’s focus on green technology marks a shift from earlier proposals that emphasized mass insulation upgrades. Controversy over botched installations in the government’s ECO insulation scheme led to insulation funding being scaled back, with resources redirected toward heat pumps and solar. Some, like Aadil Qureshi of Heat Geek, supported the move, arguing that government support is crucial for maturing the heat pump industry and encouraging private investment. Others, like Dale Vince of Ecotricity, argued that “solar panels give us the biggest bang for buck,” suggesting that subsidies for heat pumps might not deliver the same value.

For many households, the financial impact could be significant. The government estimates that installing a combination of heat pumps, solar panels, and batteries could save the average three-bedroom home about £500 annually on energy bills, while charities like Nesta and MCS Foundation suggest the figure could be over £1,000. Yet, even with grants, able-to-pay households may face additional upfront costs—installing a heat pump, for example, can still require an outlay of around £5,000 after subsidies.

Renters’ advocacy groups welcomed the plan’s provisions for tenants. Ben Twomey of Generation Rent said, “We look forward to working with the department on giving renters who are eligible for support to improve their home the assurance they need to apply for it.” Meanwhile, Simon McWhirter of the UK Green Building Council described the plan as “a vital and necessary step towards delivering comfortable, affordable and future-proofed homes and buildings across the UK.”

As the UK moves toward implementing the Warm Homes Plan, all eyes will be on the government’s ability to deliver on its promises. With energy bills still a pressing concern and the climate crisis looming large, the success of this initiative could set the tone for Britain’s green transition in the years ahead.