Families to save in biggest home upgrade plan in British history

Key highlights

• The plan aims to upgrade 5 million homes and get 1 million families out of fuel poverty by 2030 using solar panels, batteries, heat pumps and insulation.
• From 2030, landlords will need to make sure rental properties have a minimum energy efficiency score of EPC C (up from E).
• Retrofit funding will now aim to mostly support the electrification of existing homes and reduce energy bills cost effectively.
• In England, £13.5bn funding is split as follows:
  • £5bn scheme for low-income households to fully fund packages of upgrades (such as solar, battery & heat pumps, depending on what technologies are most suitable for their homes).
  • £2.7bn to make heat pumps available to anyone who wants one, via a £7,500 universal grant (including “air-to-air heat pumps” that can also cool homes).
  • £2bn for a government-backed fund for a zero and low interest loans programme for solar panels, batteries and heat pumps – potentially removing all upfront cost barriers.
  • £2.7bn towards innovative finance such as green mortgages offering a lower interest rate to homes that have been insulated and equipped with solar panels and heat pumps.
  • £1.1bn for heat networks.
  • Do note: some of the funding is already in place.
• A new “Warm Homes Agency” will give consumers access to quality installations, from initial advice to installation (replacing current bodies).
• The assessment process for Energy Performance Certificates (EPCs) will change – to be announced later this year.
• The Future Homes Standard (for new builds) is due to be introduced in early 2026 and is likely to require low carbon heating and solar panels as standard.