The Warm Homes Plan, first promised in May 2024 by Energy Secretary Ed Miliband, was designed to tackle rising energy bills and reduce carbon emissions by upgrading the energy efficiency of millions of homes.
The plan, which aims to support insulation, low-carbon heating, ventilation, and solar technologies, was expected to provide clarity and funding for households across the UK.
Officials have now confirmed the full plan will not be released until January 2026, leaving homeowners and advisors uncertain about what support will be available and when.
What the Warm Homes Plan includes
The plan is intended to upgrade up to 5 million homes over the next five years, helping households cut energy costs while contributing to the UK’s climate targets.
Key programs, such as the £7,500 Boiler Upgrade Scheme for heat pumps, may continue, but full details on eligibility, grant levels, and low-interest financing are still unknown.
So far, the government has confirmed £1.29bn for social landlords and £500m for local authorities to fund energy efficiency upgrades, but individual homeowners still have no clarity on what support, grants, or loans will be available for their properties.
Reasons for the delay
Officials say the delay is due in part to the need to finalise a replacement for the scrapped Energy Company Obligation (ECO4) scheme, which was ended in the Autumn Budget.
Combined with £1.5 billion in cuts to household energy programs, the government says it is taking extra time to ensure the plan provides “clear support for homeowners while safeguarding thousands of clean energy jobs.”
A DESNZ spokesperson said the government is “doubling down on support for home upgrades” and will outline plans to help households and support jobs “soon.”
Impact on homeowners and industry
The delay has left homeowners and the retrofit sector in limbo.
Becky Lane, CEO of Birmingham-based retrofit company Furbnow, which has upgraded more than 1,000 homes across England and Wales, said: “After slashing ECO and £1.5bn in the Autumn Budget, the industry desperately needs certainty. The Warm Homes Plan is now over eight months late. We want to invest and grow, but it’s impossible when government keeps announcing cuts while withholding the policy we need to deliver.”
She added: “Eight months of delays and counting. Companies like ours are ready to scale up and deliver better outcomes for homeowners, but we can’t plan or invest without knowing the rules of the game. The government promised the Warm Homes Plan in May. It’s now December, ECO has been scrapped, and we still have no clarity on what replaces it. Set a date and stick to it. This sector can’t operate in limbo.”
Lane also highlighted the importance of targeted low-interest finance, saying loans must focus on upgrades that need the most support, insulation, heating systems, and ventilation, rather than narrowly on solar and batteries.
Without clear guidance, millions of homeowners are left uncertain about when or how they can improve their homes.
