Lukewarm response to Warm Homes Plan

The government finally unveiled its long-awaited Warm Home Plans, which it says will lower energy bills as part of a comprehensive plan to upgrade homes in the UK. And industry commentators have been quick to have their say. 

£15 billion will be available to upgrade up to 5 million homes, addressing both energy affordability and efficiency, it says. The devolved governments in Scotland, Wales and Northern Ireland will be able to ensure that homes in those countries can benefit from upgrades too. 

The Warm Homes Plan targets help at low-income families, alongside a universal offer for those able to pay. People will be able choose the technologies that work for them and apply for government-backed, low and zero-interest loans to install solar panels. 

Loans will also be available for batteries and heat pumps. 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. 

A three-pillar programme will provide support to low-income families, those who are able to pay, and renters. 

Low-income families will receive free packages of upgrades, depending on what technologies are most suitable for their home. Upgrades could include fully funded installations of solar panels and a battery, to the full average cost (currently £9,000-£12,000).   

For those not on low incomes, there will be zero and low-interest loans for solar panels. And the government says it will be easier to get a heat pump through the Boiler Upgrade Scheme. 

For renters, landlords will be responsible for making sure that properties are safe and warm and the government says it will support them to make these upgrades fairly over several years. 

Home upgrades available under government schemes will include: solar panels (PV and thermal), heat pumps, home and heat batteries, smart controls, insulation (wall, floor and roof) and draught-proofing. Loans will be available for batteries and heat pumps. 

A new Warm Homes Agency will aim to knit together the current fragmented and complex energy upgrade systems from initial advice through to installation. It will bring together existing functions from across the regulator and other government arms-length organisations, removing duplication and waste and providing new consumer support. 

The government plans to consult with the finance sector and consumer groups before providing more information on how people will be able to access low-interest loans, and says it will provide more detail later in the year. 

The Future Homes Standard is expected to be implemented in early 2026 and is likely to make solar panels mandatory as standard. 

Henrik Hansen, managing director, Vaillant UK and Ireland, said: “Vaillant welcomes Warm Homes Plan as an important step forward, providing longterm certainty for the market and a clear signal on the UK’s transition to lowcarbon heating.  

“The ambition for 70% of heat pumps sold in the UK to be manufactured domestically, alongside continued support through the Boiler Upgrade Scheme and further investment in installer skills via the Heat Training Grant, gives industry the confidence to plan, invest and scale with purpose.  

“This rounded approach, including investment in the broader supply chain, from manufacturing to installation, not only strengthens the domestic manufacturing base but also fosters a robust ecosystem for skilled jobs and growth.” 

 Jeff House, director of external affairs & policy, Baxi, however, highlighted some gaps:  

“At face value, the confirmation of £15 billion allocated budget to support the delivery of the plan is welcome. 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.” 

At Daikin UK, Hamid Salimi welcomed the introduction of loans: “The Warm Homes Plan will accelerate progress towards net zero. It will make it cheaper to install and run low-carbon heating, making heat pumps even more attractive, particularly when they are paired with solar PV and battery technologies.  

“The ability to apply for a low or zero-interest loan on top of the Boiler Upgrade Scheme grant is particularly welcome, as it will encourage more householders to invest in this technology.”  

But the lack of support for rural households was highlighted by George Webb, chief executive, Liquid Gas UK. “It is absolutely right that government is looking to address the issues of energy efficiency and fuel poverty. However, [the] plan does little to address the needs of rural homeowners and tenants, many of whom are most impacted by these dual issues [energy efficiency and fuel poverty]. For many of these homes, heat pumps and additional insulation are simply not an option due to the fabric of the building.” 

While Mark Krull, from LCL Awards and Logic4training added: “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 complaints procedure that would prevent the failures of the past from being repeated.”