Thousands of London homes struggling with poor insulation and high energy bills are set to receive a major boost thanks to over £230m in funding secured by London Councils, social housing

providers, and the Mayor of London.

This government-backed investment will support energy-saving improvements across 22,000 homes, making them more efficient, reducing heating costs, and cutting carbon emissions.

Where the funding is going

The funding consists of:

£175m from the Warm Homes Social Housing Fund – This includes £77.9m for a Strategic Housing Partnership, allowing London boroughs and housing associations to upgrade social housing. The remainder will support other social housing providers in the capital.

£56m from the Warm Homes Local Grant – This will help low-income homeowners in 31 London boroughs improve their properties.

A significant portion of this funding—£130m—will be managed by Warmer Homes London (WHL), a new initiative launched earlier this year by London Councils and the Mayor of London. WHL aims to speed up home energy upgrades by working closely with social landlords, helping residents lower heating costs while reducing London’s carbon footprint.

Tackling fuel poverty and climate change

With 379,000 London households living in fuel poverty, WHL’s main focus is to support low-income Londoners by installing insulation, solar panels, and heat pumps. These upgrades will not only make homes warmer in the winter but also help keep them cooler during summer heatwaves.

To amplify the impact, London boroughs and housing associations are committing an additional £100m of their own funding to retrofit social housing. Meanwhile, the Mayor of London is investing nearly £10m over four years to establish WHL as a central hub for information, tools, and funding.

A new approach to energy efficiency

Previously, boroughs had to apply for government funding individually, creating uncertainty and higher costs. WHL now offers a ‘one-London approach’, securing long-term, reliable funding for boroughs to plan and execute retrofitting projects efficiently. This approach will also help strengthen supply chains and create new jobs in the green energy sector.

With housing accounting for a third of London’s carbon emissions, making homes more energy-efficient is crucial in the fight against climate change. This initiative is a key step toward a greener, fairer, and more sustainable London.

Cllr Kieron Williams, London Councils’ Executive Member for Climate, Transport & Environment, said:

“Far too many Londoners are living in fuel poverty and in homes unfit for our changing climate. Through Warmer Homes London, we are securing vital investment to help tackle these challenges.

“This funding will help us make thousands of homes across the capital warmer and greener, bringing down both energy bills and carbon emissions. In the long run, we want to deliver energy efficiency upgrades to even more homes and we will be looking to secure further investment to support this crucial work.”

Deputy Mayor for Environment and Energy, Mete Coban, said: 

“Londoners have been struggling for years with the soaring cost of energy bills, with many living in poorly insulated damp homes. Working jointly with London Councils, we are committed to making homes more energy efficient and cheaper to heat, through our Warmer Homes London programme. This welcome £231m funding from Government is the largest allocation London has ever received and shows how working with the new government we are building a better, fairer and greener London for everyone.”