Government publishes the Warm Homes Plan

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Last week, the Department for Energy Security and Net Zero published the Warm Homes Plan laying out the government’s plans to provide £15 billion worth of public investment into improving the energy efficiency of homes between now and 2030.

The Plan included numerous announcements that are relevant to the housing sector in the North, including:

  • £5 billion worth of funding targeted at low-income households, with £4.4 billion worth of capital grants. This covers both of the existing Warm Homes Social Housing Fund and the Local Grant schemes, with delivery of these schemes continuing as planned.
  • The Social Housing Fund has received a top up for the financial year 2026/27 taking the funding in that year to approximately £750 million. From 2027/28, both the Social Housing Fund and Local Grant will be combined into a single funding pot of £1 billion a year for low-income households, and will look to take a more area-based, cross-tenure approach.
  • A new Warm Homes Fund which will provide finance primarily to businesses and industry, looking to reduce the costs of technologies such as air-source heat pumps
  • £2 billion consumer loans to increase take up of measures such as solar PV, battery storage and heat pumps
  • A new Warm Homes Agency to oversee and coordinate the delivery of the Plan
  • Confirmation that the Future Homes Standard will be published in Q1 2026

The Plan also confirmed that more information on specific funding allocations for the social housing sector and the role of mayors and combined authorities in future retrofit programmes will be coming in March 2026. The government has previously promised full devolution of retrofit funding to all Established Mayoral Strategic Authorities within this parliament.

We also eagerly await a government response to consultations on Minimum Energy Efficiency Standards in the Social Rented Sector, and a revised Decent Homes Standard, both of which have significant implications for social landlords in the North and the delivery of the Warm Homes Plan.

In response to the publication of the Plan, Tracy Harrison, Chief Executive of the Northern Housing Consortium said:

“We welcome the publication of the Warm Homes Plan and the government’s landmark investment in improving the energy efficiency of social homes. This will enable our members to continue the great work they’re doing to address the North’s older, colder homes. 62 per cent of social housing in the North now meets EPC C and our members are committed to continuing this journey.

“Our Warm Homes, Green Jobs research previously highlighted how investment in energy efficiency can create good, green jobs across the North and this programme is of the right scale to significantly contribute to this. We also called for Mayoral Combined Authorities to take the lead on delivering energy efficiency in their areas to meet the needs of local communities. We are pleased the government has pledged to put ‘local mayors in the driving seat’ and look forward to hearing further details about how this will work in March.

“To make this plan a reality our members need a detailed breakdown of funding allocations, and confirmation of related legislation such as Minimum Energy Efficiency Standards and the revised Decent Homes Standard so they can plan their programmes of work.”

You can read the full Warm Homes Plan here.