UK Unveils Largest Home Energy Upgrade Programme to Cut Bills and End Fuel Poverty

United Kingdom, 27 January 2026 —The UK government has announced the biggest home energy upgrade programme in British history, aimed at helping families lower their energy bills, improve living conditions and reduce fuel poverty while driving the transition to cleaner, more efficient homes.

The Warm Homes Plan will deliver £15 billion in investment to upgrade homes across the UK in the coming years, with up to five million households expected to benefit. The programme aims to help families cut energy bills by hundreds of pounds each year while supporting the government’s goal of lifting one million households out of fuel poverty by 2030.

The announcement builds on recent cost-of-living support measures already introduced this spring, which have reduced average household energy costs by around £150. Around six million households are also receiving an additional £150 through the Warm Home Discount scheme.

In an official press release, 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.”

The Warm Homes Plan focuses on three key areas:

• Low-income households will receive direct support through £5 billion of public funding to deliver free, tailored home upgrades such as insulation, solar panels and home batteries.
• A wider national offer will provide zero and low-interest government-backed loans, a £7,500 universal grant for heat pumps and new rules requiring solar panels to be installed as standard on new homes. 
• Renters will also benefit from stronger protections to ensure homes are safe, warm and affordable, alongside support for landlords to upgrade properties fairly.

The plan is expected to create 180,000 high-quality jobs by 2030 in energy efficiency and clean heating. It will also strengthen UK manufacturing, with a goal that at least 70% of heat pumps installed in the UK are made domestically, supported by a £90 million investment in the heat pump supply chain. Over the course of Parliament, the programme is set to unlock £38 billion in total investment, including funding for skills, innovation and UK manufacturing.

The Warm Homes Plan represents a major step forward in the UK’s approach to energy, housing and climate policy. By combining large-scale public investment, long-term protections, local leadership, and a focus on high-quality jobs and domestic manufacturing, the programme aims to deliver lasting financial relief for families, create warmer and more sustainable homes, and build a stronger, greener economy for the future.