The Mayor of London has announced a £58.7m investment to improve the energy efficiency of thousands of homes across the capital, helping some of the city’s poorest households reduce
their bills and cope with extreme temperatures.
The new Home Energy Saving Fund will support upgrades for up to 5,000 households living in some of London’s least energy-efficient social homes. The Mayor’s office estimates residents could save as much as £500 a year on energy costs through measures such as improved insulation, solar panels and heat pumps.
The scheme is part of the government’s wider £15bn Warm Homes Plan and represents the first time London has received devolved funding and powers to deliver large-scale home retrofit projects directly.
Mayor of London Sadiq Khan said the investment would help tackle fuel poverty while preparing the capital’s housing stock for a changing climate.
Around one in 10 Londoners currently live in fuel poverty, meaning many households face difficult choices between paying energy bills and covering other essential costs.
Many homes across the capital were built decades ago, before modern energy efficiency standards were introduced. As a result, thousands of properties are expensive to heat in winter and vulnerable to overheating during increasingly frequent summer heatwaves.
The Mayor’s recent Heat Ready London Plan warned that around one million homes could currently be at high risk of overheating as global temperatures rise.
The new funding will allow councils and housing associations to carry out improvements including insulation, ventilation upgrades, renewable energy installations and low-carbon heating systems.
Officials say the measures will not only reduce household energy consumption but also improve health by tackling problems such as damp, mould and poor indoor air quality.
The programme is expected to cut carbon emissions by around 107 kilotonnes — equivalent to more than 40,000 return flights between London and Sydney — while creating new opportunities for green jobs and skills in the capital.
The funding builds on the Mayor’s existing £10m Warmer Homes London programme, launched with London Councils last year. The initiative has already upgraded more than 1,000 homes with measures including solar panels, insulation, improved glazing and low-carbon heating.
The Home Energy Saving Fund will be delivered by the Mayor of London in partnership with local authorities, housing associations and Warmer Homes London, with the aim of making homes across the capital more affordable, healthier and better prepared for future climate challenges.
The Mayor of London, Sadiq Khan, said: “Thousands of Londoners are living in inadequate homes that are freezing and damp in winter and unbearably hot during summer heatwaves. With this new funding, we can transform these homes for the future, making them more energy efficient, while also driving down bills and improving living conditions.
“As well as reducing fuel poverty, this will boost our economy, delivering more green jobs and skills so we can continue to scale up retrofitting across the city, supporting more Londoners to heat and cool their homes and reduce carbon emissions as we continue to build a fairer, more prosperous city for everyone.”
Mete Coban, Deputy Mayor for Environment and Energy, and Warmer Homes London Co-Chair said: “I welcome this significant investment from Government which enables us to urgently scale up retrofit across the city, improving the energy efficiency of Londoners’ homes and delivering on our net zero commitments.
“No one should have to spend winter in a cold, damp home but 10 per cent of Londoners are currently living in fuel poverty, forced to make the difficult decision between heating and eating.
“We’ve now delivered over 1,000 homes through Warmer Homes London - demonstrating on our commitment to reducing fuel poverty. By making homes cheaper to heat and cool, and improving indoor air quality, we are delivering healthier homes for Londoners and a fairer London for everyone.”
Councillor Stephen Cowan, Chair of London Councils said: "This devolved funding is hugely welcome and vital for ensuring that more Londoners benefit from greener, healthier and more affordable homes. Through Warmer Homes London, London Councils and the Mayor are working together to make sure this funding reaches those who need it most, in partnership with boroughs and housing associations.
“Today's announcement demonstrates how London's different tiers of government working effectively together delivers better outcomes for our residents: fewer homes affected by damp and mould, more families moving out of fuel poverty, and quality local jobs being created".
Clare Miller, Chief Executive of Clarion Housing Group and Vice Chair of G15, said: "The Mayor's investment is welcome news for Londoners. It will help more households reduce their energy bills and support our efforts to tackle fuel poverty and provide homes that are warmer in winter, cooler in summer and healthier to live in.
"The G15 provides homes for around one in ten Londoners and our members are already investing hundreds of millions of pounds to improve the energy performance of residents' homes through better insulation, low-carbon heating, solar panels and other retrofit measures.
"This funding will help us go further and reach more households, making a real difference to people's everyday lives. We also welcome the Government's decision to devolve and bring forward this funding to London, allowing it to be targeted where it can have the greatest impact for residents."
Kwajo Tweneboa, housing campaigner, said: “This is a welcome investment. No one should be living in a home that’s freezing in winter, unbearably hot in summer or making them ill because of damp and mould. Improving the energy efficiency of our homes will help cut bills, improve people’s health and make homes fit for the future. The key now is making sure this funding reaches the people who need it most and delivers real change on the ground.” Photo by The wub, Wikimedia commons.
