After a long period of uncertainty, the UK Government’s Warm Homes Plan has finally been announced, making it one of the most significant investments ever made in improving the UK’s housing stock. The Plan commits £15 billion over the next five years to raise energy standards across homes nationwide.

According to government estimates, the programme could enable improvements in up to five million properties, helping households lower energy costs, live in warmer, healthier homes and potentially lifting around one million families out of fuel poverty by 2030.

At Warm Life Limited, we perceive this announcement as a pivotal moment for the retrofit, energy efficiency and compliance landscape.

Below are some key takeaways from the plan outlining what they mean for homeowners, landlords, tenants and those delivering upgrades on the ground.

Understanding the Warm Homes Plan

The Warm Homes Plan has been positioned as a long-term national framework combining public funding, low-cost finance and regulatory reform. The primary aim of the plan is to accelerate investment in:

• Building fabric improvements and insulation
• Solar PV and battery storage
• Low-carbon heating technologies, including heat pumps

Local authorities, combined authorities, and devolved administrations will be responsible for the coordination of the delivery, along with additional support from private lenders such as banks and building societies.

An important point to be noted here is that the Warm Homes Plan aligns with upcoming changes to minimum energy efficiency standards (MEES) in the private rented sector, while making clear that homeowners will not be compelled to remove existing boilers.

Some components of the plan have already been commissioned through the programmes scheduled between 2025 and 2028, including:

• Warm Homes: Local Grant – £500 million for English local authorities to improve poorly performing homes occupied by low-income households.
• Warm Homes: Social Housing Fund – £1.29 billion awarded to social landlords to upgrade homes currently below EPC Band C.

Key Announcements Explained

£5 Billion Targeted at Fuel Poverty

A cornerstone of the Warm Homes Plan is a fully funded support package for households on lower incomes or experiencing fuel poverty. Rather than a one-size-fits-all approach, upgrades will be tailored to individual properties and may include:

• Insulation and ventilation measures
• Solar panels and battery systems
• Heat pumps and other clean heating solutions

The objective is not short-term relief, but lasting reductions in energy bills, achieved by improving thermal performance and increasing on-site energy generation.

Moving from ECO to Capital Funding

The planned closure of the Energy Company Obligation (ECO) scheme at the end of March marks a major shift for the retrofit sector. ECO has long been a cornerstone of domestic retrofit delivery, and its withdrawal creates understandable concern across the supply chain.

To manage this transition, the Government has outlined several measures:

• New procurement routes for capital-funded schemes from April 2026
• Conditions on future funding designed to retain and utilise the existing ECO workforce
• A ministerially led working group to oversee the shift and coordinate opportunities for installers, contractors and retrofit professionals

ECO4 is expected to continue until 31 December 2026, primarily to allow time for remediation of non-compliant work, but without increased delivery targets or added cost pressures on consumers.

Tackling the Upfront Cost Challenge

For many owner-occupiers, the barrier to upgrading their home is not the benefit but the initial cost. The Warm Homes Plan introduces government-backed low and zero-interest loans, enabling households to invest in technologies such as solar PV, batteries and heat pumps when it is right for them.

This complements existing support for clean heating, including the £7,500 Boiler Upgrade Scheme grant for heat pump installations.

Clearer Expectations in the Private Rented Sector

The plan sets out a firm direction of travel for the private rented sector in England and Wales, acknowledging that too many tenants still live in homes that are cold, damp or inefficient.

Key proposals include:

• Raising Minimum Energy Efficiency Standards to EPC Band C by October 2030 for all domestic tenancies
• Measuring compliance using two new EPC metrics
• Increasing the improvement cost cap to £10,000, with typical upgrade costs expected to be considerably lower

While this gives landlords greater long-term certainty, it also highlights the importance of early planning, accurate assessment and compliant retrofit delivery.

At present, equivalent reforms for non-domestic rented buildings remain unaddressed.

A New Warm Homes Agency

To streamline delivery and reduce complexity, the Government plans to establish a Warm Homes Agency (WHA) as a central public body overseeing the programme.

The Agency will bring together responsibilities currently spread across multiple organisations by:

• Consolidating functions from government departments and Ofgem
• Closing Salix to reduce duplication
• Simplifying oversight and accountability

The WHA will provide impartial advice on eligibility, funding and trusted installers, while working closely with retrofit businesses, manufacturers and training providers to support workforce growth and quality standards.

Skills, Jobs and Sector Growth

Delivering the scale of ambition set out in the Warm Homes Plan will require a significant expansion of the workforce. The Government expects jobs in energy efficiency and clean heating to rise from around 60,000 in 2023 to as many as 240,000 by 2030.

This includes growing demand for Retrofit Assessors, Retrofit Coordinators, designers, installers and clean energy specialists, creating opportunity, but also placing greater emphasis on competence, training and quality assurance.

EPC Reform: A New Direction

Alongside the Warm Homes Plan, the Government has issued an interim update on Energy Performance Certificate (EPC) reform, with redesigned EPCs expected from October 2026.

New EPC Metrics Will Include:

• Energy Cost – estimated running costs
• Fabric Performance – how well the building retains heat
• Heating System – efficiency and environmental impact
• Smart Readiness – ability to integrate smart energy technologies

To support transition, the existing Energy Efficiency Rating (EER) will remain in use for comparison and regulatory compliance until fully phased out.

Additional confirmed changes include:

• EPCs retaining a 10-year validity period
• EPCs required at the point of marketing, not sale or let
• Potential expansion of EPC requirements when certificates expire in the private rented sector

From 2026, EPCs in England, Wales and Northern Ireland will differ significantly from those used in Scotland, reflecting a diverging regulatory approach.

Further consultation is underway on EPC banding linked to the Home Energy Model (HEM), which will underpin future EPC calculations.