Thousands of households in England are set to benefit from government-backed energy efficiency improvements, helping families cut energy bills and stay warm.

Major investment to improve energy efficiency

The UK government has launched a major initiative to enhance energy efficiency in homes, with up to 170,000 properties receiving vital upgrades such as insulation, double glazing, solar panels, and heat pumps. This effort, part of the Warm Homes Plan, is designed to make homes warmer, reduce energy consumption, and lower costs for families.

From today (Tuesday, 11 March), £1.8 billion in funding will be allocated to local authorities and social housing providers, marking a significant step in delivering warmer, more energy-efficient homes across England.

This initiative specifically targets low-income households and social housing tenants, ensuring that families in need benefit from improved energy performance and clean heating solutions. By reducing reliance on international gas markets, these measures could help families save hundreds of pounds per year on energy bills.

A key part of the government’s plan for change

The Warm Homes Plan is part of a broader Plan for Change, aimed at improving living standards across the UK. By increasing Real Household Disposable Income, the government is committed to easing the financial burden on families while also making homes greener and more sustainable.

Minister for Energy Consumers, Miatta Fahnbulleh, emphasized the importance of this initiative:

“Living in a warm, comfortable home should not be a luxury. It is a right that too many people have gone without for too long. By directing this funding to local authorities and social housing providers, we are delivering on our commitment to improve thousands of homes across England. As part of our Plan for Change, we are accelerating the Warm Homes Plan to upgrade cold, draughty homes—making them warmer, cleaner, and cheaper to live in.”

Funding breakdown & key beneficiaries

The funding will be distributed across two main schemes:

Warm Homes: Social Housing Fund – £1.29 billion allocated to 144 projects across England.

Warm Homes: Local Grant – £500 million allocated to 73 projects across 270 local authorities over the next three years.

Additionally, areas like the West Midlands Combined Authority (WMCA) and Greater Manchester Combined Authority (GMCA) will receive support through the Warm Homes and Public Sector Decarbonisation Devolution Programme.

Supporting energy security & lowering bills

This initiative aligns with the government’s broader strategy to make the UK a clean energy leader, reducing dependency on volatile fossil fuel markets and ensuring long-term energy affordability.

As energy prices remain high, this funding follows other recent government measures, including:

Expanding the Warm Homes Discount, making almost 3 million more households eligible for a £150 discount on energy bills next winter.

Proposals to require private landlords to improve their properties’ energy performance by 2030, potentially saving renters £240 per year.

A £500 million Winter Package with Energy UK to help families manage energy costs.

Extending the Household Support Fund, assisting vulnerable households with essential expenses like food, energy, and water bills.

Boosting the Boiler Upgrade Scheme budget to £295 million next year to help more families afford heat pumps.

These efforts highlight the government’s commitment to reducing energy costs, enhancing energy security, and improving the quality of life for households across England.

Kate Henderson, Chief Executive of the National Housing Federation, said: 

We welcome this funding allocation to help decarbonise England’s social homes; a crucial step towards the government’s commitment to tackle fuel poverty. 

With the fund oversubscribed, it is clear that there is both momentum and appetite among housing associations to upgrade their homes at scale and pace. The sector is working hard to ensure all their homes meet EPC C by 2030, in line with the government’s net zero target. 

Decarbonising our homes is a win win for residents, the government and our planet, creating warmer homes, saving residents money and tackling the climate emergency.

Gavin Smart, Chief Executive of the Chartered Institute for Housing (CIH), said: 

We welcome this investment as another important step towards making homes warmer, healthier, and more affordable to run. Social landlords have worked hard to improve the energy efficiency of their homes, and this funding will help them to continue that work—supporting retrofit programmes that will reduce fuel poverty, lower carbon emissions, and bring down energy bills for tenants.  

The strong demand for this funding highlights how vital energy efficiency investment is for the social housing sector. CIH will continue to work with government and our members to support the effective rollout of this funding and advocate for the long-term investment needed to make all homes warmer and safer.

Tracy Harrison, Chief Executive of the Northern Housing Consortium, said:  

The North has lots of older, colder homes – with 1 in 5 built before 1919 and almost a million households currently in fuel poverty – so this Warm Homes investment will make a big difference to people’s lives. NHC members, including housing associations, local authorities and combined authorities across the North, are working to tackle this by installing tens of thousands of energy efficiency measures from heat pumps to home insulation. 

This extra funding from government is very welcome and will boost these efforts, helping to cut carbon emissions, support jobs, cut fuel bills and tackle fuel poverty. We also welcome the move to devolve retrofit funding in the North through the allocation of funding to Greater Manchester Combined Authority’s Integrated Settlement.  

This will allow funding to better align with locally led plans for economic growth, training and skills provision, as well as support greater collaboration between housing providers in Greater Manchester. We know there is continuing appetite from our members to continue to make our homes more energy efficient.

Derek Horrocks, Chairman of Sustainable Energy UL, said: 

With up to 170,000 households supported under today’s announcement, this will positively impact thousands of the most vulnerable in society through the creation of warmer, healthier, drier, and more affordable-to-heat homes. 

Building on the success of previous energy efficiency programmes, the initiative will also drive significant investment in training and skills development, strengthening the workforce needed for the UK’s transition to net zero. Alongside safeguarding existing jobs, the plan will also generate thousands of new roles in the growing green economy and enable the supply chain to continue to invest in the sector for the long term with confidence.