Warm Homes Plan offers prospect of procurement boost for SME’s
The UK government has announced the Warm Homes Plan to underwrite its commitment to Clean Power targets, which will invest £15b to upgrade up to 5 million homes, aiming to reduce energy costs and address fuel poverty. Existing measures announced at the Budget include an average reduction of £150 on energy bills from April, with around six million households receiving a £150 Warm Home Discount, bringing total support to £300.
The Plan includes measures to increase access to home clean energy products such as solar panels, heat pumps, and batteries, including government-backed low- and zero-interest loans. Low-income households and those in fuel poverty may receive support to cover the full cost of installations. New rules will require landlords to invest in energy efficiency improvements for rented and social housing.
It also introduces measures to ensure new homes are cheaper to run. The installation of solar panels will be standard, with the Future Homes Standard due to be implemented in early 2026, responding to changes in building standards over the past decade, including the cancellation of the Zero Carbon Homes standard, which affected the energy efficiency of more than a million homes.
Industry observers have welcomed the initiative, but issues remain about the pace of delivery.
Brian Berry, Chief Executive of the Federation of Master Builders said:
“The launch of the Government’s long awaited Warm Homes Plan is a critical step forward. A £15 billion programme to cut bills and upgrade homes, with the ambition to improve up to five million properties with energy efficient upgrades by 2030, is something which the FMB welcomes, but we must keep sight on the remaining 25 million UK homes that will still need upgrading at some point to make them fit for the future. While this intervention from Government is needed, there must be incentives to get the industry moving, to make sure they are competent and skilled up to upgrade the majority of the UK’s homes.”
Brian Berry (left) and Chris Norbury
“Focussing on the now, the task will be delivery. The new Warm Homes Agency must get up and running quickly to coordinate programmes and consumer protections, with procurement routes that give SMEs a fair chance to win work. The creation of a new Workforce Taskforce is also an important step. If the plan is to succeed, the Government must give industry a genuinely stable pipeline: multi‑year funding, a clear timetable, and certainty over future standards and regulations. Consistency will be essential if small builders are to invest in skills.”
Chris Norbury, CEO, E.ON UK said:
“We welcome the government’s action through the Warm Homes Plan and its clear focus on practical measures that will help households bring their energy bills down.
“We know from working with our own customers that the most effective way to cut bills is to enable people to generate and store their own energy and combine this with flexible time-of-use tariffs that reward smarter energy use. This approach puts control in customers’ hands, pounds in their pocket and turns the energy system into something that works for people, not the other way around.
“By taking strong action to make sure new energy works for everyone by combining access to innovative solutions with significant funding support, the Government is helping unlock real, everyday benefits. It means lower bills, simpler choices and a positive energy transition that people can feel directly in their homes and communities.”
Adam Scorer, Chief Executive at National Energy Action added:
“People struggling in fuel poverty desperately need the Warm Homes Plan. Cheaper energy costs, efficient heat 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 today’s publication and commitment to lift a million households out of fuel poverty is a welcome, landmark occasion”.
Adam Scorer (left) and Jonathan Brearley
Jonathan Brearley, Chief Executive Officer of Ofgem observed:
“The government’s Warm Homes Plan is an important step towards the UK realising its goals in improving energy efficiency in our nation’s buildings. Creating warmer, more energy efficient homes is in all our interests. Ofgem will continue to play a key part in supporting this.
“The creation of a Warm Homes Agency will see existing Ofgem experts transfer over to the new organisation, to deliver energy efficiency schemes for homes and other buildings. By bringing together schemes currently split across government, Ofgem and elsewhere, households and scheme users will benefit from a clearer, more efficient system.”