The government has turned up the heat on efforts to tackle fuel poverty and modernise Britain’s cold and energy-leaking homes, but not everyone is convinced it’s quite enough to thaw the freeze.
This week, the government launched its Warm Homes Plan, promising £15bn of public investment to deliver what is billed as the nation’s biggest ever programme to upgrade and modernise homes.
Along the way, it is claimed the plan will improve energy efficiency, tackle the cost-of-living crisis by reducing bills, and rescue afflicted households from the grim ‘choice’ of heating or eating.
There’s pretty much something for everyone, according to the announcement from the Department for Energy Security & Net Zero (DESNZ); with support cutting across tenures, and featuring what could be simplistically referred to as a technology-agnostic approach.
Targeted interventions will help those households on low incomes, with low cost loans for homeowners, while new protections will be introduced for renters, DESNZ says. Meanwhile, there will be a “universal offer” for all households to upgrade homes “if and when they want to”, providing consumer choice.
The plan aims to support the installation of solar panels, batteries, heat pumps, and insulation, and it is claimed that Warm Homes will deliver upgrades to some five million homes, and lift around one million people out of fuel poverty.
Furthermore, DESNZ says that around six million households will receive a £150 Warm Homes Discount, adding to £150 shaved off energy bills in the Budget earlier this year.
All told, it sounds ambitious, and it has certainly generated a broad round of welcome from industry figures, although inevitably not everyone is impressed.
The New Economics Foundation (NEF) has called the Warm Homes Plan the “starting gun for a retrofit revolution”. At the other end of the spectrum, the GMB union has called it “muddled headed”.
Chaitanya Kumar, NEF’s head of economy and environment, said: “By combining zero-interest loans with a dedicated Warm Homes Agency and local delivery, this government has armed itself with the tools to fix the UK’s leaky housing and stop households from spending another winter in cold homes. After a decade of piecemeal policy, we finally have a common-sense package that will slash bills, cut emissions, and create good local jobs.”
Andy Prendergast, GMB’s national secretary, said: “This is exactly the kind of muddle-headed top down bureaucracy that gives the green transition a bad name. We will never hit net zero in the country if ministers don’t listen to the voices of the people who work in energy, keeping our lights on and our homes warm.
“Handing out massive heat pump subsidies to a sceptical public doesn’t work – but the government seems hell bent on doubling down. The idea that we will deploy more than one and a half million heat pumps a year within a decade is a fantasy; we don’t have the supply chains, skills or public appetite.
“This is money that could have been spent decarbonising a popular, successful gas network. Instead we are throwing good money after bad to a public who don’t want what DESNZ is selling.”
Be that as it may, DESNZ claims there is record demand for products such as heat pumps and solar panels, but costs of the equipment – despite coming down in recent years – remains a prohibitive factor for many households.
Three pillars
To overcome such hurdles, as the department’s announcement explains, the Warm Homes Plan rests on three key pillars:
1: Direct support for low-income families
- Low-income households will receive free of charge packages of upgrades, depending on what technologies are most suitable for their homes – backed by £5bn of public investment
- As an example, families could receive fully funded installations of solar panels and a battery, to the full average cost (currently £9,000-£12,000)
- For social housing residents, this could mean upgrades to entire streets at the same time, lowering bills and improving warmth and comfort for whole neighbourhoods, the government says
2: An offer for everyone
- According to the government, the zero and low interest loans programme it is backing will encourage the installation of more solar panels on existing properties, with new rules that mean every new home will come with solar panels by default
- It’s claimed this plan will triple the number of homes with solar panels on their rooftops by 2030
- A £7,500 universal grant is being introduced in an effort to make it easier for households to install heat pumps. This includes the first ever offer for ‘air-to-air’ heat pumps that can also cool homes in the summer
3: New protections for renters
- By updating protections for renters, and supporting landlords to make these upgrades in a fair way over several years, the government estimates that half a million families will be lifted out of fuel poverty by the end of the decade
“A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain,” said the Prime Minister, Keir Starmer. “[This] plan marks a turning point. It will help to slash energy costs and lift up to a million people out of fuel poverty.
“This is a government bearing down on the cost-of-living crisis. By driving bills down for good and upgrading millions of homes, we’re giving people the security and the fair shot they need to get on in life.”
Ed Miliband, the energy secretary, added: “It is a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe. With this investment, we embark on a national project to turn the tide – waging war on fuel poverty and taking another step forward in tackling the affordability crisis for families throughout Britain.”
Round-up of reaction
Matthew Scott, policy manager for net zero and sustainability at the Chartered Institute of Housing (CIH), said: “A coherent, cross-tenure strategy for decarbonising our homes and making them warmer has been missing for several years. CIH therefore welcomes the landmark publication of the Warm Homes Plan, which sets out a clear vision and ambition for the future of safe, healthy housing.
“We welcome the allocation of further funding to the Warm Homes: Social Housing Fund and Local Grant schemes, the significant boost for heat network improvements, and the integration of heat resilience measures into the government’s capital programmes – all core CIH priorities over the past two years. The plan is an important step towards giving the housing sector the clarity and certainty it needs for the future.”
Kate Henderson, chief executive of the National Housing Federation (NHF), said: “[The] announcements will enable housing associations to invest in upgrading even more homes at scale and pace, and ensure social housing residents benefit from lower bills and warm, comfortable homes. We look forward to seeing the full detail of the Warm Homes Plan, and will continue working with the government to make all social homes fit for the future.”
Ian Gregg, chief property officer at Riverside, said: “We are encouraged to see the government taking ambitious steps to increase investment to lift families out of fuel poverty and improve household energy efficiency. It is good to get clarity and a huge step forward.
“The latest data shows that 50% of households in social rent homes are in the lowest income bracket so it is heartening to see the plan is prioritising investment towards those in most need to help to lift more people out of fuel poverty and create healthier and happier homes.
“We are committed to making sure all our homes are warm, comfortable and sustainable to help eliminate fuel poverty.”
Jonathan Layzell, chief executive at Stonewater, said: “The Warm Homes Plan gives us the long-term certainty we need to invest in our homes, our communities and customers’ futures. Retrofit is not just about reducing carbon, it’s about comfort, cost and opportunity, and we’re incredibly proud to be leading the way.
“At Stonewater, we’ve spent years laying the groundwork. We’ve co-funded major research with IPPR and with support from previous decarbonisation funding, invested in low-carbon solutions for existing homes, including smart technologies like Wondrwall.
“With this continued commitment, we can deliver plans at scale. We’ve developed grassroots-level action plans to assess the specific needs of each home, and we’re working closely with local and combined authorities to ensure retrofit aligns with regional energy strategies and infrastructure capacity.
“This is a chance to create warmer homes and a greener future, while lowering customers’ bills. But to make the most of it, we need streamlined administration and delivery models that empower providers to act quickly and efficiently. We’re ready to work alongside the government to realise their ambitions.”
Adam Scorer, chief executive at National Energy Action, said: “People struggling in fuel poverty desperately need the Warm Homes Plan. Cheaper energy costs, efficient heating systems and homes that keep the warmth in are all essential for the plan to succeed. There is a lot of work to be done, but [the] publication and commitment to lift a million households out of fuel poverty is a welcome, landmark occasion.”
Kate Bell, assistant general secretary of the TUC, and co-chair of the Warm Homes Taskforce, said: “No family should live in cold, damp or mouldy conditions. We all know our winters are getting colder with climate change. Finally, we have a government pledging to deliver the millions of home upgrades that the British public need. If delivered right, this programme of investment can deliver quality jobs in every corner of the country and bring down bills.”
Ben Twomey, chief executive of Generation Rent, said: “Homes are the foundations of our lives but high energy bills and rents force many of us to make heart wrenching choices between heating and eating, while millions of us are living with shocking levels of mould and damp.
“That’s why it’s so important, both for renters and the climate, that the government is raising the basic insulation and heating standards for rented homes. We look forward to working with the department on giving renters who are eligible for support to improve their home the assurance they need to apply for it.”
Energy action
Greg Jackson, founder of Octopus Energy, said: “The Warm Homes Plan is a really important step forward. Electrifying homes is the best way to cut bills for good and escape the yo-yo of fossil fuel costs.
“Solar panels can slash energy costs – and paired with a battery we get the electricity when we need it. Heat pumps can be cheaper to run, and with solar they’re often dramatically cheaper. With the right finance, simpler rules and a big push from manufacturers, heat pumps will increasingly be the best solution for many homes – as they are in other countries like Sweden, Norway and Finland.
“We still need to focus on getting electricity costs lower for everyone, building on the changes in the budget, but this plan sends a clear signal that the future of home heating is electric.”
Mike Thornton, chief executive of Energy Saving Trust, said: “The Warm Homes Plan has real potential to make homes across the UK warmer, healthier and more affordable. With £15bn of investment, the plan will help bring low carbon technologies into homes, delivering lasting savings for people still feeling the pressure of the cost of living, whilst reducing our reliance on volatile fossil fuels.
“The UK government’s commitment to offer a range of financial support will bring us closer to making home upgrades affordable so that all households – regardless of income – can take action … Installing low carbon technologies in more homes will ensure people feel the real, everyday benefits of cheaper, cleaner power.”
Simon McWhirter, chief executive of the UK Green Building Council (UKGBC), said: “This Warm Homes Plan represents a vital and necessary step towards delivering comfortable, affordable and future-proofed homes and buildings across the UK …
“We welcome the ambition for a solar ‘rooftop revolution’, low interest loans to help households wean themselves off volatile fossil fuels, and the focus on protecting low-income householders. By harnessing abundant solar energy and heat pump technology to both heat and cool buildings, the plan will help future-proof against rising bills and our rapidly warming climate.”
Charlotte Lee, chief executive of the Heat Pump Association, said: “Whilst the plan sets out a clear vision and spending allocation to support the decarbonisation of homes, it is disappointing and a missed opportunity not to see the same for the decarbonisation of commercial and public sector buildings or confirmation of further action to tackle the high price of electricity relative to gas. We urge the government to consult and take action to unlock meaningful progress in these areas.”
Nick Maclean, president of RICS, said: “The Warm Homes Plan is a critical step towards improving the UK’s housing stock. Enabling retrofit through strong investment will ensure that surveying professionals can support the delivery of desperately needed safer, warmer and more affordable homes. This holistic approach recognises the need for coordinated, whole-house solutions to cut emissions, lower bills and improve comfort.”
Image credit: Zvone – Shutterstock
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