Warm Homes Plan Unveiled as Industry Welcomes Major Boost for Low-Carbon Housing
Posted by: electime 26th January 2026
The Government has today unveiled its Warm Homes Plan, a £15 billion strategy aimed at accelerating low-carbon, energy-efficient homes across the UK. Experts from across the heating, energy and housing sectors have welcomed the ambition, while highlighting the need for clear delivery details, long-term policy stability and simple access to funding to ensure the plan delivers real benefits for households and industry alike.
John Felgate, Managing Director of STIEBEL ELTRON UK, said:
“We welcome the Government’s Warm Homes Plan which is a game changing moment in accelerating low-carbon homes across the country. The £15 billion investment, combined with funding packages and heat pump grants sends a strong signal that renewable heating technologies are central to delivering low-carbon homes across the country.
“We’re pleased to see the inclusion of heat pumps, batteries, insulation and smart controls, as well as an onus on ventilation and requiring solar panels on new builds from 2026, which will create the joined-up approach the renewable heating sector has been calling for.
“It also highlights the need for good indoor air quality which is just as important as warmth and efficiency, and we’re pleased to support this with our ventilation systems ensuring homes stay comfortable, healthy, and free from pollutants.
“Additionally, the Warm Homes Agency and increased powers for regional mayors will help ensure that delivery will be smarter, more local, and more effective.
“This strategy ties in well with our approach with our heating, hot water, and ventilation products designed to integrate seamlessly with renewable technologies and time-of-use tariffs, supporting a whole-house approach to energy efficiency. And we remain fully committed to supporting those in the industry to ensure every project delivers high-quality installations.
“Today’s announcement will give households, installers and manufacturers the confidence to accelerate the transition to cleaner, low-carbon homes. Now the Government has unveiled its plans, it is time for them to push on and share further detail on how it will achieve its ambitions with a view that the Warm Homes Plan is progressed without delay.
Stuart Hesk, an expert in heating and renewable energy solutions and Director of Heating, at Hewer Facilities Management Ltd, said:
“While the ambition is welcome, the industry is still waiting for the finer operational details. Clarity around funding mechanisms, eligibility and delivery timelines will be critical if contractors are to mobilise at the scale required. The scrapping of EC04 created understandable uncertainty, so confidence will depend on how clearly this programme is defined and sustained. The target of upgrading five million homes is undoubtedly ambitious, but having a clear goal is important.
“We believe it is achievable provided the programme is maintained across parliamentary terms and backed by long term policy stability. The continued support of the BUS grant is particularly reassuring, as it gives businesses just like ours the confidence to invest in skills, training, and new jobs to support the low carbon transition.
“Overall, this plan signals that the Government is validating its commitment to decarbonisation, and with the right detail and long-term backing it could represent a significant opportunity for households, social housing providers, and the wider industry.”
“The Warm Homes Plan is a positive and much needed step for households struggling with high energy bills and highlights the Government’s continued commitment to decarbonising the UK’s housing stock. Supporting low-income households and social housing residents at scale has the potential to deliver real, long-term benefits in comfort, affordability, and carbon reduction.
“We are encouraged by the focus on making clean energy technologies more accessible. We are already working to make retrofit heat pump solutions affordable within the BUS grant, helping to bring installation costs to a level that can compete with, or even undercut, traditional gas boiler replacements. When combined with solar PV and battery storage, these solutions can deliver significant reductions in energy bills for homeowners and social landlords alike.”
Layton Hill, Vice President of Strategy for UK and Ireland at Schneider Electric, said:
“Today’s Warm Homes Plan clearly signals the UK’s commitment to Clean Power 2030 and decarbonising the wider UK economy – with clear incentives to accelerate the rollout of electrified heating and digital technologies for UK households. Electrification is critical to driving down costs for households and industry alike – it’s a cost-of-living strategy, one that can also lead to new jobs.
“Implementation will be key to the success of the Warm Home’s Plan. Previous schemes to incentivise decarbonisation of UK housing stock at scale were undermined by overly complex applications processes that discouraged homeowners from participating. It’s encouraging to see the Plan is supported by robust financing. What will be essential to driving public interest and uptake is that the policy prioritises simplicity and ease of access.
“Domestic energy policies cannot operate in isolation. If the Government is serious about delivering electrified heat to UK households, then we need whole systems thinking to ensure that increased electrical demand is matched by complementary investments to increase the capacity of the UK’s electrical networks. We will be examining the next round of NESO’s Future Energy Scenarios and Ofgem’s highly anticipated RIIO-ED3 electricity distribution price control framework to enable these essential infrastructure investments.”
Vann Vogstad, Founder and CEO of COHO, the UK’s leading shared living platform, said:
“The Warm Homes Plan is well-intentioned, but it risks overlooking the shared housing and HMO sector, which is a significant part of the UK housing system. While landlords are mentioned within the Warm Homes Plan, the practical focus and financial support still appears to be weighted towards owner-occupiers.
“Over two million house-sharing tenants live in homes where energy bills are typically included, meaning landlords already have a direct financial incentive to manage energy use efficiently. If carbon reduction is the aim, along with cutting energy bills, policy needs to ensure that landlords are not only referenced but meaningfully incentivised, as investment decisions in the rental and HMO market are driven by financial viability, not ideology. Without that alignment, uptake will be uneven and the overall impact of the policy will be reduced.
“Offering low-interest loans is not enough. Support mechanisms need to bring meaningfully change to the economics otherwise uptake will be slower and patchier in the rental and HMO sector, limiting the policy’s overall effectiveness and putting additional upward pressure on rents. Latest ONS private rent figures out today show that average UK monthly private rents increased by 4.0 per cent, to £1,368, in the 12 months to December 2025.
“The industry also needs greater clarity from the Government around the “new rules to ensure landlords invest in upgrades to cut bills for renters and social tenants”, as mentioned in the Warm Homes Plan, if we’re to see change.
“Encouraging landlords to install greener technology absolutely makes sense, but it works best when policy recognises how shared housing actually operates and supports investment in a way that reflects those commercial realities.”
Yselkla Farmer, CEO of BEAMA, the trade organisation for manufacturers and providers of energy infrastructure technologies and systems, comments:
“Today’s publication of the Warm Homes Plan provides long-awaited clarity on the UK Government’s vision for clean heat, with a welcome £15 billion investment in rooftop solar generation and a range of low carbon heating technologies. The Plan sends a strong and clear signal that the future of UK clean heat is electric.
“BEAMA strongly welcomes this progress, while urging the Government to go further. Our industry’s priority has always been to work in collaboration with the UK Government to deliver our shared ambition to boost increase consumer choice for low carbon heating solutions; maximise energy system flexibility; and prioritise whole systems thinking linking electrification of heat and transport with targeted investments in smarter energy network infrastructure. Only through aligning all related policies can Government deliver the ambition of the Clean Growth Plan, Industrial Strategy and our focused work on Sector Growth.
“The Warm Homes Plan makes strong steps towards these shared goals, but needs to be supported within the next six months by other associated policies – including SSES, Future Homes Standard, Energy Performance Certificate reforms, and additional incentives for a wider range of low carbon heating technologies through the Home Energy Model – to build upon and successfully implement the policy framework outlined within today’s Warm Homes Plan. ONS data estimates over 14.8 million (52%) of UK homes have an energy efficiency rating of band D or below. By aligning all of these policies, the UK has the opportunity to implement one of the most ambitious and comprehensive heat decarbonisation approaches in the world. And only by addressing the above and tying together all policy strands will we unlock investment and growth.
“Echoing the observations of ESNZ select committee chair Bill Esterson MP, we urge the UK Government to go further to address the ‘spark gap’. Reducing the cost of electricity is the strongest market signal the UK Government can send to encourage consumers to go green by electrifying heat. As the UK continues to make progress building low cost, renewable electricity generation, we will be working with the Department for Energy Security and Net Zero to explore additional policy options to reduce electricity bills for households across the country.
“Additionally, we would urge caution around promoting the benefits of summer cooling using air-to-air heat pumps, as this risks a double penalty to household energy bills whilst removing opportunities to benefit from flexible tariffs, reduced bills and comfort for many homes.
“We also welcome a more regional dimension, mirroring an approach BEAMA has championed for nearly ten years. Similarly we have made the case for independent advice for households coupled with quality installations, so the introduction of a Warm Homes Agency is long overdue and will pick up the gap created when the national Energy Efficiency Advice Centre network was dismantled over a decade ago. It is critical to avoid mis-selling and also ensure homes are not only well insulated and heated but also ventilated appropriately to prevent damp and mould issues.
“Finally, it is critical that the measures in this Plan and others to come this year are repeatedly publicised far and wide, forming a national mission to improve our housing stock. This would give confidence to industry and investors of the Government’s commitment, and ensure householders access the benefits on offer.
“Overall, BEAMA supports the UK Government renewed ambition with the Warm Homes Plan, but urge them to go further with bold implementation driving transformative change. This will deliver a win-win-win for the UK accelerating decarbonisation of the UK economy; supercharging industrial growth; and drive down household bills for UK consumers.”
Ian Rippin, CEO at MCS, said:
Ian Rippin, CEO at MCS, said: “MCS welcomes the Warm Homes Plan and the government’s commitment to transforming UK homes, by providing funding for a range of low-carbon technologies that unlocks greater choice for consumers. In particular, the Plan builds on the strong momentum for solar – following a record year for MCS certified installations in 2025 – to set out further support for the sector. It’s also positive to see recognition of the value of combining multiple technologies, with specific reference to the benefits of solar, battery, and heat pumps within the same property.
“Policy certainty is crucial for the ongoing growth of the sector, which is why it’s great to see confirmation that the Boiler Upgrade Scheme has been extended until 2030, with funding to increase year-on-year. The inclusion of additional financial support through zero and low interest loans, as well as a commitment to providing free upgrades for low-income homes, is a positive step. However, with the Plan stating there will be further details announced in the Spring, MCS will continue to work closely with stakeholders and government to ensure the needs of our industry are reflected during any gap in funding or support for households following the end of ECO4.
“It’s critical that, as installation volumes rise, there is an assurance of ongoing quality outcomes for consumers. This is true for retrofit installations and those going onto new builds – with the upcoming Future Homes Standard set to mandate rooftop solar. MCS’s redeveloped installer Scheme, which is rolling out over the coming months, is recognised in the Warm Homes Plan as being set to play a pivotal role in providing this assurance. It puts consumer protection and delivered quality first, which is vital in giving everyone the confidence they need to invest in home-grown energy.
“As the sole certification Scheme for clean heat measures, MCS is proud to be supporting the implementation of the Warm Homes Plan, including the expanded Boiler Upgrade Scheme. We are currently integrating emerging technologies into the Scheme – with air-to-air heat pumps and thermal energy storage systems, or heat batteries, set to be added into the scope of MCS this year. Being able to offer MCS certification for these technologies provides assurance to consumers about the quality of the installations of these technologies.”
Jeff House, director of external affairs & policy at Baxi, said:
“The long-awaited Warm Homes Plan has finally been published today putting an end to months of speculation.
“At face value, the confirmation of £15bn allocated budget to support the delivery of the plan is welcome, with a mix of finance offerings, incentive through the extended Boiler Upgrade Scheme and targeted support for fuel poor households.
“Dig deeper into the detail, however, and there are some aspects which are disappointing.
Firstly, there is no mention of the role that hybrid heat pump systems can play in the heat transition. There is an ever-growing body of evidence to support the roll out of this technology in the UK and effective policy examples in EU member states to learn from.
“Secondly, there is insufficient detail or action on reducing electricity pricing, beyond what has been previously announced. A critical factor to mass market uptake of heat pumps and electrification will be the spark gap; more work is needed here if we are to achieve the stated ambition of 450,000 annual heat pump installations by 2030.
“Finally, whilst not expected as part of the Warm Homes Plan, we would urge government to look at long term certainty and funding for the non-domestic sector. With the end of the Public Sector Decarbonisation Scheme (PSDS) in 2028 and little else in the way of funding for decarbonisation of heat in this sector, there is a gap to be addressed.”
Mark Krull from LCL Awards and Logic4training comments:
“I’m very pleased to see the Warm Homes Plan finally published, providing security for businesses in the building services sector. A huge investment overall – one of the biggest the UK has ever seen in retrofit – low carbon home improvements are now open to everyone.
“Highlights include the fact that batteries are explicitly included under the plan alongside solar PV and heat pumps. Energy storage is critical to supporting low-carbon technologies, ensuring they perform in the most energy efficient way possible alongside grid fluctuations. The introduction of government-backed zero and low interest loans will help to establish domestic battery storage and remove the upfront cost barrier for homeowners. Ambitious plans for Heat Networks are also encouraging.
“To deliver the Warm Homes Plan we need suitably trained installers, so I’m pleased to see that Heat Training Grant funding will continue until 2029. Apart from upskilling the installer base, we also need to encourage more young people into the sector. The £20 million expansion of ‘free’ construction-based courses is welcome, but I would like to see the new Level 2 Heating & Plumbing Engineer Apprenticeship (due for launch this September), mentioned alongside Diploma’s in Refrigeration, Air Conditioning and Heat Pump Systems.
“Sadly, ECO failings have meant insulation funding has been downgraded. This is a missed opportunity to strengthen consumer protections and provide a direct remediation and complains procedure that would prevent the failures of the past from being repeated. Improving building efficiency in this way still remains the cheapest and quickest option for reducing bills and enhancing end user comfort. There is also no mention of the plan to phase out gas boiler installations by 2035.
“Despite some omissions, today’s announcement is definitely good news – we finally have formal confirmation, structure and delivery mechanisms for this long-awaited scheme. I look forward to the imminent publication of the Future Homes Standard, which will provide further security for large house builders.
“For true Net Zero success, however, green policies of this influence should be upheld beyond the election cycle.”
Sarah Kostense-Winterton, Executive Director of the Mineral Wool Insulation Manufacturers’ Association (MIMA), said:
“Whilst we welcome the significant funding commitments and recognition of the role insulation plays, the Warm Homes Plan published today is a missed opportunity to better support more than 9 million fuel poor and low-income households living in poor quality, cold housing. The Plan offers warm words but fails to directly offer security of outcomes to households across the UK.
“If the Government is serious about tackling the cost-of-living crisis, it must get home heating costs down for such households for good, and that starts with policies which place a greater focus on insulating homes effectively, including when installing heat pumps. While the focus on improving consumer protections is welcome, this means prioritising the security of verifying the real performance of installations – both in lowering home heating bills and lowering carbon emissions – so that householders can be assured of getting the good outcomes they expect.
“Heating bills remain one of the biggest pressures on household finances, particularly for low-income families living in cold, leaky homes. Installing clean heating systems without also improving the fabric of those homes, where appropriate, risks leaving people paying more than they should for their home heating.
“High-quality insulation permanently reduces the amount of energy households need to stay warm. It cuts home heating costs for decades as well as improving people’s comfort and health.
“The policies to be implemented under the Warm Homes Plan can break the cycle of short-term fixes and embed a consumer-centric, outcomes-focused approach to home retrofit. To succeed in tackling the cost-of-living crisis, the Government needs to support a “performance-led” approach to home retrofit which protects the most vulnerable households, jointly cutting home heating demand and delivering clean heating, and for the first time, routinely verifying the performance of both.”
