The government has finally unveiled its long-awaited Warm Homes Plan with a pledge to deliver £15 billion of public investment, roll out upgrades to up to five million homes and help lift up to a million families out of fuel poverty by 2030.

The government says the plan, expected last year, is a “vital next step” in addressing the long-term issue of energy affordability for the country. Home insulation installations fell by more than 90% between 2010 and 2024, and millions of households have paid higher energy bills as a result.

The Warm Homes Plan targets help at low-income families, alongside a universal offer, to ensure that “working families can feel the benefits of products that can cut their bills”.

Alongside this, the plan will support consumer choice for all households, so people can choose the technologies that work for them “as and when they want”. Homeowners will 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 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.

Prime Minister, Keir Starmer, said: “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.

“This is a government bearing down on the cost-of-living crisis. 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.”

Energy Secretary Ed Miliband said: “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.”

The plan is backed by £15 billion of government investment, including allocations for devolved governments in Scotland, Wales and Northern Ireland to ensure homes across the country can benefit.

It also includes “common-sense measures” to ensure that new homes are built cheaper to run, with solar panels as standard and the Future Homes Standard to be implemented early this year.

According to the government, the three pillars of the programme are:

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’

• A 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.

Adam Scorer, Chief Executive at National Energy Action, said: “People struggling in fuel poverty desperately need the Warm Homes Plan. Cheaper energy costs, efficient heating systems and homes that keep the warmth in are all essential for the plan to succeed. There is a lot of work to be done, but today’s publication and commitment to lift a million households out of fuel poverty is a welcome, landmark occasion.”

Ben Twomey, Chief Executive of Generation Rent, said: “Homes are the foundations of our lives but high energy bills and rents force many of us to make heart wrenching choices between heating and eating, while millions of us are living with shocking levels of mould and damp.

“That’s why it’s so important, both for renters and the climate, that the government is raising the basic insulation and heating standards for rented homes. 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.”

Greg Jackson, Founder of Octopus Energy, said: “The Warm Homes Plan is a really important step forward. Electrifying homes is the best way to cut bills for good and escape the yoyo of fossil fuel costs.

“Solar panels can slash energy costs – and paired with a battery we get the electricity when we need it. Heat pumps can be cheaper to run, and with solar they’re often dramatically cheaper. With the right finance, simpler rules and a big push from manufacturers, heat pumps will increasingly be the best solution for many homes – as they are in other countries like Sweden, Norway and Finland.

“We still need to focus on getting electricity costs lower for everyone, building on the changes in the budget, but this plan sends a clear signal that the future of home heating is electric.”

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), said: “The announcement of a clear roadmap for the reform of PRS MEES is welcome. It gives landlords and those living in the private rented sector some certainty and allows businesses to plan for the future.

“Improving the energy efficiency of our residential housing stock is a significant challenge and we have been pleased to work constructively with the government to find solutions that ensure its ambitions can be delivered.”

Mike Thornton, Chief Executive of Energy Saving Trust said: “The Warm Homes Plan has real potential to make homes across the UK warmer, healthier and more affordable. With £15 billion of investment, the Plan will help bring low carbon technologies into homes, delivering lasting savings for people still feeling the pressure of the cost of living, whilst reducing our reliance on volatile fossil fuels.”

Ian Gregg, Chief Property Officer at Riverside, said: “We are encouraged to see the government taking ambitious steps to increase investment to lift families out of fuel poverty and improve household energy efficiency. It is good to get clarity and a huge step forward.

“The latest data shows that 50% of households in social rent homes are in the lowest income bracket so it is heartening to see the plan is prioritising investment towards those in most need to help to lift more people out of fuel poverty and create healthier and happier homes.

“We are committed to making sure all our homes are warm, comfortable and sustainable to help eliminate fuel poverty.

“We are the third biggest provider of the government’s Warm Homes work and Riverside is very proud of the work we are doing where we have match-funded the government’s investment to retrofit more than 3,000 of our homes across the Liverpool City Region, London, Greater Manchester, and Carlisle.”