Following several delays, the UK Government published its Warm Homes Plan (WHP) last week, setting out its long-term framework to deliver warmer, more cost-efficient homes across the UK.[1] In this article, Brevia Energy explores the strategic aims of the plan, its key focuses and delivery mechanisms.
Strategic Aims
The WHP has four core objectives: to lower energy bills, cut fuel poverty, deliver good jobs while supporting national growth, and boost energy security. The WHP intersects with various existing Government strategies, such as the Clean Jobs Plan, Fuel Poverty Strategy, Modern Industrial Strategy and Regional Energy Strategic Planning.
Key Focuses
The WHP will seek to upgrade five million homes in the forthcoming years through £15 billion envelope of public investment, divided as follows:
- £5 billion for low-income schemes.
- £2 billion for consumer loans.
- £2.7 billion for the Boiler Upgrade Scheme.
- £1.1 billion for Heat Networks.
- £2.7 billion innovative finance through the Warm Homes Fund to invest in home upgrades.
- £1.5 billion other funding for Warm Homes Plan Programmes and Devolved Administrations.
This approach seeks to blend targeted intervention where affordability is of greatest concern, while encouraging private investment. Funding will be channelled through the new Warm Homes Fund, supporting the entire retrofit supply chain.
However, there are several components notably missing from the WHP. Reports have highlighted the Government’s decision not to include any commitment to phasing out gas boilers, instead focusing on incentivising low-carbon technologies.[2] This softer approach appears to account for pressures from the Right to scrap the so-called ‘boiler tax’, fining boiler manufacturers who fail to reach heat pump sales targets.[3]
Missing Pieces
The Government faced criticism over the lack of sufficient investment in insulation, arguing that this risks making funding for low-carbon heating technologies redundant, particularly without mandatory insulation requirements for the Boiler Upgrade Scheme.[4] Furthermore, while the extra £5 billion allocated for low-income households has been welcomed, some have suggested it is unlikely to deliver the same results as the previous Energy Company Obligation scheme, had it remained in place.[5]
The cost of heating energy inefficient homes is particularly amplified for those with electric heating systems due to the high cost of electricity compared to gas. Scottish Housing Secretary Mairi McAllen MSP argued that achieving cost parity with gas would improve the affordability of electric heating, thus incentivising consumers to transition from gas boilers to low-carbon technologies.[6] However, while the Government acknowledges the lack of parity as an issue, there was little indication of addressing this specifically in the WHP.
Delivery
Delivering the WHP at scale presents a double-edged sword for Government, creating new job opportunities while simultaneously intensifying skills demand across the workforce. Energy efficiency and clean heating jobs are projected to grow from approximately 60,000 in 2023 to up to 240,000 by 2030. This offers an opportunity to Government to upskill and reskill existing workers in declining industries such as gas boiler installations, ensuring a just transition to Net Zero 2050.
A further consideration beyond having the required workforce in numbers, is also having a workforce that delivers work of sufficient quality. The WHP was published against the backdrop of a recent National Audit Office report highlighting challenges in consumer redress in the retrofit market, with poor results and a lack of accountability often disproportionately affecting the most vulnerable.[7] Consumer confidence, therefore, represents a second critical test in the success of the WHP in practice. The Government has committed to simplifying the fragmented retrofit landscape, ensuring work is delivered right the first time, and establishing clearer redress pathways. These reforms are intended to win the public’s trust and unlock uptake.
Ensuring the right standards and sufficient capacity will fall under the remit of the new Warm Homes Plan Workforce Taskforce, co-chaired by the Minister for Energy Consumers, Martin McCluskey MP, and Kate Bell, Assistant General Secretary of the TUC.[8] The Taskforce is expected to align skills, standards and workforce planning with the pace and scale of deployment necessary in the WHP.
Looking Forward
Ahead of devolved elections, where energy policy appears to be taking centre stage, the WHP is likely to remain a point of discussion. Minister for Energy Consumers Martin McCluskey MP criticised the Scottish Government for falling behind the rest of the UK on solar and heat pump delivery in recent years.[9] However, the SNP will likely home in on the major missing part from the WHP: that, despite a key electoral pledge made by Labour to reduce energy bills by £300, this WHP lacks a detailed roadmap for delivery.[10]
Nevertheless, the Warm Homes Plan provides energy stakeholders with greater clarity on the direction of travel for the sector: sustained investment, firmer standards and a concerted effort to synchronise delivery systems. The success of the WHP will now hinge on implementation and convincing households of the value proposition. Lower bills, warmer homes and increased comfort will need to be tangible outcomes communicated to households if uptake is to match ambition. Government and industry will need to work together closely for this framework to realise a resilient, investable market.
Brevia Energy is a dedicated division of Brevia Consulting, and has a longstanding reputation for its expertise and experience in the Energy Sector.
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Notes
[1] UK Government, Warm Homes Plan, 21 January 2026, Link.
[2] The Guardian, No ban on gas boilers in UK warm homes plan but heat pumps get £2.7bn push, 20 January 2026, Link.
[3] BBC News, Tories pledge to cut bills as energy price battle takes shape, 6 October 2025, Link.
[4] Homebuilding & Renovating, ‘Like running a bath without a plug’: The flaw in the Government’s Warm Homes Plan, 28 January 2026, Link.
[5] Energy & Climate Intelligence Unit, Warm Homes Plan: gutting funding could see families paying up to £500 extra in bills every year, 4 June 2025, Link.
[6] Scottish Housing News, McAllan describes Warm Homes Plan ‘missed opportunity’ as UK unveils £15bn retrofit programme, 21 January 2026, Link.
[7] National Audit Office, Energy efficiency installations under the Energy Company Obligation, 14 October 2025, Link.
[8] UK Government, Warm Homes Plan Workforce Taskforce: terms of reference, 21 January 2026, Link.
[9] The Scotsman, What is the UK Government’s Warm Homes Plan and will it bring down my bills?, 22 January 2026, Link.
[10] BBC News, Source of Miliband’s energy bill pledge casts doubt on savings, 23 October 2025, Link.
