Warm Homes Plan: Tackling Energy Inefficiency in UK Homes

What’s happening

The Warm Homes Plan has been described as the biggest home upgrade programme in British history. It will focus on retrofitting up to 5 million homes with measures such as solar panels, heat pumps, improved insulation, and other energy-efficiency upgrades.

The plan includes free upgrades for low-income households, backed by a £5 billion allocation. It also introduces low-cost loans and grants for heat pump installations, alongside new protections for renters to ensure improvements can be delivered fairly and at scale.

Why this matters for UK businesses

For UK businesses operating in construction, retrofit, energy supply, and low-carbon technologies, the Warm Homes Plan presents a major opportunity. Large-scale installation programmes will increase demand across the supply chain, from installers and manufacturers to consultants and finance providers.

Beyond direct opportunities, improved energy efficiency across the housing stock can help reduce operational costs, support net-zero ambitions, and attract customers increasingly focused on sustainable living and lower energy bills.

Key facts at a glance

• £15 billion investment to upgrade up to 5 million homes

• Free upgrades for low-income households and low-cost loans for others

• Target to lift 1 million families out of fuel poverty by 2030

• Creation of a new Warm Homes Agency to support delivery and installations

• Over 18 million UK homes are currently classed as energy-inefficient

SBS insight

This ambitious plan underlines the scale and urgency of energy upgrades across the UK housing sector. For businesses, it highlights the need to be ready for increased demand, evolving standards, and new funding mechanisms.

At SBS, we support businesses to understand policy changes, access funding opportunities, and plan energy efficiency improvements that align with wider net-zero and cost-reduction strategies.

Further reading

Warm Homes Plan – Government announcement
https://www.gov.uk/government/news/families-to-save-in-biggest-home-upgrade-plan-in-british-history

Warm Home Discount Scheme
https://www.ofgem.gov.uk/environmental-and-social-schemes/warm-home-discount-whd