Dr Alex Boote, Product & Innovation Manager at ARC Building Solutions, discusses past government-funded schemes for enhancing energy efficiency across the UK housing stock and explores whether the Warm Homes Plan will be more likely to succeed.

In the recent 2025 Spending Review, the UK government put its money where its mouth is to tackle energy efficiency across the built environment, by announcing an additional £6.6 billion on top of the previous government’s pledge – bringing the grand total up to £13.2 billion. Not only will this pot of funds upgrade millions of homes and enhance the quality of living, but it is also set to reduce household annual energy bills by up to £600 – providing a real helping hand to low-income households.

To complement the expansion of the Warm Homes Plan, the Winter Fuel Scheme is now back, which provides financial support for older and more vulnerable people to help cover the costs of heating their homes during those chilly winter months. This scheme had been a key player in the battle against fuel poverty since its introduction in 1997, and its rash withdrawal in July 2024 sparked national outcry.

Together, these initiatives play an essential part in eliminating fuel poverty and creating healthier homes. They build on a long history of former initiatives that have provided financial support for improvi9ng living conditions and installing energy efficiency upgrades. But with so many past efforts trying – and failing – to drive lasting, systematic change across the UK housing stock, what makes this latest round of funding more likely to succeed?

The Evolution of Retrofit Schemes

The 1970s brought an energy crisis, forcing the nation to grapple with the realities of energy shortages. This provoked broader discussion on sustainable living – especially around how we use energy – setting the stage for all future environmental initiatives and policies. 

Back then, schemes focused on basic energy-saving improvements like simple retrofit insulation and draught-proofing. Over time, these evolved into broader strategies balancing social needs, environmental responsibility, and cost-effectiveness to reduce heat loss and improve energy performance in homes.

A Brief History Lesson of Past Schemes

In 1994, the UK became the first country in Europe to require energy suppliers to meet energy efficiency targets through the Energy Efficiency Standards of Performance Scheme. The goal was to help achieve a set amount of carbon savings across homes by encouraging customers to install low-carbon measures. Since it was a fixed-term scheme, it came to an end in 2002, But as you’ll soon find out, few were fortunate enough to match this scheme’s success.

Next up was the Warm Homes Front Scheme, running from 2000 to 2013. It provided central government funding for vulnerable households to get energy efficiency upgrades. But this past scheme is one to learn from as it lacked stringent eligibility criteria. So, as funds shrank and the scheme came to a halt, it wasn’t praised for its success, but rather criticised for failing to deliver enough upgrades to those who needed them most.

In 2009, the Community Energy Saving Programme was launched. It required energy suppliers and, for the first time, electricity generators to deliver improved energy efficiency standards in Britain’s  most deprived areas through a ‘whole house’ approach – addressing all energy-efficiency issues rather than just one. Yet unclear standards and unrealistic timelines resulted significant delays and poor-quality installation, bringing the programme to an end in 2012. This shines a spotlight on the need to have the right resources in place for success – whether that’s quality products and materials or highly-trained installers.

Perhaps the most infamous scheme is the Green Deal Scheme, introduced in 2013 and backed by the government until 2015. Originally known as the Green Homes Loan Scheme, this initiative offered loans specifically for energy-saving improvements, which allowed the spread of repayments to be over 10–25 years. The idea was that the cost of the upgrades – offered as loans – wouldn’t be higher than the amount of energy bill savings. But the scheme didn’t quite deliver… Homeowners showed little interest and some contractors displayed such poor workmanship that many homes ended up being in a worse condition than before, shaking confidence in future programmes. A little lesson here: if the eaves – that’s the joint between the roof and wall – is neglected while retrofitting insulation, thermal bridging can actually worsen, increasing the risk of damp and mould growth. This undermines the retrofit activity and wastes public investment. Once again, this scheme highlighted the importance of quality workmanship. 

In 2020 came the Green Homes Grant Scheme. This was a £2 billion grant, and formed part of the government’s ‘green recovery’ following the coronavirus pandemic. This well-meaning scheme offered homeowners vouchers for upgrades of up to £10,000. However, installers were expected to provide three quotes per installation, unpaid. Due to unrealistic timeframes, the capacity to succeed, and a lack of qualified installers, many dropped out of the scheme, resulting in its demise less than one year later.

Launched in 2023 with the aim to upgrade 300,000 homes by 2026, the Great British Insulation Scheme was  introduced to combat high energy prices through fully or partly funded retrofit insulation. Though this scheme is yet to finish, it has fallen behind its target and only saw 59,000 measures installed in 46,900 homes by December 2024.

Will the Warm Homes Plan Break the Cycle?

Past efforts have shaped today’s energy efficiency standards and raised the basic standard of living. But in the last decade alone, we’ve seen at least 30 retrofit schemes – many of which failed to make a lasting impact. Without the right infrastructure in place, schemes will continue to fall short and history will repeat itself.

Government funding and policy introduction is important, but they’re not enough on their own. Proper installation of insulation is crucial for both energy efficiency and health. So, to ensure this is delivered, the connection between education and government policy needs to be stronger. The government, with the support of the industry, should build on training programmes focused on green construction and retrofitting. This approach will help address the skills gap and create opportunities for industry growth.

Likewise, manufacturers and suppliers will play a key role this success by developing reliable, easy-to-install solutions that focus on efficiency, occupant health, and long-term performance.

By learning from past mistakes and focusing on product innovation, industry collaboration, and skill development, the UK can make meaningful, lasting progress – not just lowering household energy bills but improving the quality of living.