The Government’s newly announced Warm Homes Plan, backed by £15bn of investment, has been met with a mixture of optimism and concern across the housing, energy and retrofit sectors. While industry leaders have welcomed the long-term commitment to cleaner heat, lower bills and warmer homes, many warn that the plan risks falling short without stronger support for insulation, commercial buildings and the private rented sector.
Heat Pump Association UK chief executive, Charlotte Lee said:
“The publication, and the £15bn confirmed to deliver the Warm Homes Plan, send a strong signal to both industry and consumers that the shift to clean, affordable, electrified heat remains a priority for this Government. The plan acknowledges the vital role of heat pumps as a proven, scalable solution that can lower energy bills, improve comfort, and reduce carbon emissions for homes and buildings across the UK.
“Whilst the plan sets out a clear vision and spending allocation to support the decarbonisation of homes, it is disappointing and a missed opportunity not to see the same for the decarbonisation of commercial and public sector buildings or confirmation of further action to tackle the high price of electricity relative to gas.”
Dave Raval, insulation expert at LoftZone, and director of the National Warm Homes Council said:
“The news that the Government is proceeding with the ineffective Warm Homes Plan is deeply troubling and risks repeating critical errors made previously. These plans had rightly been earmarked as a once-in-a-generation opportunity to firmly upgrade the UK housing market’s value. Unfortunately, they overlook the basics such as protecting loft insulation through mandatory raised boarding.
“It is well known within our industry and beyond that the vast majority of households are damaging insulation, and by extent their energy efficiency and warmth, simply because they store items directly on top. In turn, it reduces effectiveness drastically by up to 50%, meaning homes leak energy, waste cash and work harder to keep warm for longer.”
Becky Lane, CEO of retrofit company Furbnow said:
“It’s great to see the Government taking the need for warm homes seriously, but unfortunately the Warm Homes Plan falls short.
“Solar panels and batteries will cut electricity bills and heat pumps will help you create a low-carbon home, but if your home is already struggling to keep heat in, then this loan does not help improve your home insulation and keep you warm.
“Insulation is the missing piece, and with the Warm Homes Plan this is still too expensive. With loans focusing on technologies instead of the fabric, the Warm Homes Plan risks leaving behind millions of households who are not eligible for local grants.”
Gary Lawson, managing director at Sustainable Building Services (UK) Ltd (SBS) said:
“The Warm Homes Plan is a welcome and long-awaited commitment that recognises retrofit as essential to lowering energy bills, tackling fuel poverty and improving everyday living conditions across the UK.
“The challenge now is delivery at pace and at scale through an area-based approach as we are already doing with our Warm Homes: Social Housing Fund and Local Grant schemes. If delivered well, this plan could genuinely transform the state of homes across the country.”
Vann Vogstad, founder and CEO of COHO said:
“The Warm Homes Plan is well-intentioned, but it risks overlooking the shared housing and HMO sector. While landlords are mentioned within the Warm Homes Plan, the practical focus and financial support still appears to be weighted towards owner-occupiers.
“Offering low-interest loans is not enough. Support mechanisms need to bring meaningful 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.
“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.”
Paul Smith is managing director at NIBE Energy Systems Limited said:
“The Warm Homes Plan provides much-needed clarity and long-term direction for the acceleration of heat pumps in UK homes, backed by record public investment.
“Crucially, the plan places a clear emphasis on upgrading homes, cutting energy bills and helping lift households out of fuel poverty. That focus on affordability and comfort is vital in ensuring the transition to clean heating delivers real, everyday benefits for the people who need them most.
“The continued expansion of the Boiler Upgrade Scheme (BUS), alongside new zero- and low-interest finance, is an important step in making the upfront cost of installation less prohibitive and opening clean heating to many more households.
“For the industry, this plan underlines the importance of capability, quality and readiness at scale.”