UK government to spend £15bn on energy transition

  • January 28, 2026
  • Steve Rogerson

The UK government is to spend £15bn helping millions of families benefit from solar panels, batteries, heat pumps and insulation that can cut energy bills.

The Warm Homes Plan is for all types of households, with targeted interventions for those on low incomes; upgrades for social housing; new protections for renters; and a universal offer for all households to upgrade homes if and when they want.

The government hopes the plan will help lift up to a million families out of fuel poverty and tackle long term energy costs, following the government’s intervention to take an average of £150 of costs off energy bills for all families this April.

The Warm Homes Plan (www.gov.uk/government/publications/warm-homes-plan) will deliver £15bn of public investment, roll out upgrades to up to five million homes that could save them hundreds on energy bills and help lift up to a million families out of fuel poverty by 2030.

The government has already taken immediate action on the cost of living at last year’s Budget, taking an average of £150 of costs off energy bills from April. On top of this, around six million households will receive the £150 warm home discount, making a total package of £300.

Upgrading homes is one of the best ways to bring down bills for good, and this plan is a step in addressing the long-term issue of energy affordability for the country. Home insulation installations fell by more than 90% between 2010 and 2024, and millions of households have paid higher energy bills as a result.

The British people are currently showing record demand for home clean energy products such as solar panels and heat pumps. The cost of these products continues to fall, but they are still out of reach for too many, and this plan will help bring these costs down so working people can benefit.

The Warm Homes Plan targets low-income families, alongside a universal offer to ensure that working families can feel the benefits of products that can cut their bills.

Alongside this, the plan will support consumer choice so people can pick the technologies that work for them as and when they want. Homeowners will be able to apply for government-backed, low and zero interest loans to install solar panels. These loans will also be available for batteries and heat pumps Low-income households and those in fuel poverty could receive support that would cover the full cost of having solar panels put on their rooftop, or insulation installed, alongside rules to ensure landlords invest in upgrades to cut bills for renters and social tenants.

“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,” said energy secretary Ed Miliband. “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.”

The plan is backed by £15bn government investment, including allocations for devolved governments in Scotland, Wales and Northern Ireland, to ensure homes right across the country can benefit from these upgrades.

It also includes common-sense measures to ensure that new homes are built cheaper to run, with solar panels as standard, with the Future Homes Standard to be implemented early this year.