The UK government recently released their Warm Homes Plan to address fuel poverty and bring the benefits of clean power to the people of Britain. This record investment will deliver £15 billion to bring up to 1 million families out of fuel poverty and upgrade 5 million homes.*
The move from existing schemes to the Warm Homes Plan
The Warm Homes Plan marks the start of a long-term framework to replace the short-term schemes that have been in place to date. With previous schemes such as the Great British Insulation Scheme (GBIS) ending in March, and others such as The Energy Company Obligation (ECO) extended until the end of the year**, elements of the Warm Homes Plan will start to take effect in 2026 and continue to be rolled out as a replacement system across the year to allow time for suppliers and other industry stakeholders to meet existing targets and remediate non-compliant installations.
What has been announced in the Warm Homes Plan
The government has announced some core consumer protection reforms that will allow stronger, simpler access to clean energy upgrades. Features established in the plan include additional funding, new funding pathways, and updated delivery targets. The main pillars of the plan cover;
Support for low-income households
Specific support tailored to low-income households has been clarified under the plan, including direct grants for installations backed by £4.4 billion, a fuel poverty strategy to double delivery levels, £600 million of the Warm Homes Fund specifically targeted to help low-income groups and the redevelopment of existing low-income schemes, with more details to be provided by Spring 2026*.
Universal support for all households
One of the fundamental elements of the Warm Homes Plan will be the provision of uniform support measures for all households in the UK. Under the new framework, households could benefit from;
- A new low-interest consumer loan offer to help homeowners with upfront costs, complementing the £7,500* heat pump discount through the Boiler Upgrade Scheme, with increasing funding annually.
- Rooftop solar installations, with up to 3 million additional installations across all tenures by 2030*.
- The Warm Homes Fund, with £1.7 billion* allocated to low/zero-interest loans.
- Heat Network Zoning, supported by new protections and £1billion* investment over Parliament, which aims to provide cheaper, cleaner heat for towns and cities.
Additional household support
The Warm Homes plan also outlines specific frameworks for households based on their living circumstances. Stronger protections for renters will take effect, with new obligations on private landlords to improve the energy performance of their properties to an Energy Performance Certificate rating of C by 2030*.
Alternatively, those looking to purchase a new home will see changes as the Future Homes Standard, set to take effect in early 2026, requires that the majority of new homes be built with solar panels and heat pumps by default.
Wider protection reform
Within the Warm Home Plan document, the government have announced the creation of a new Warm Homes Agency (WHA), a dedicated public body to support the delivery of the plan. The Retrofit System Reform Advisory Panel have identified three key priorities initially addressed with the WHA, which they will continue to develop:
- Simplification of access points to make the system clearer and easier to navigate for installers
- Stronger oversight and clearer accountability
- Clearer and faster routes for complaints and remediation
What do the changes in the Warm Homes Plan mean for Installers?
The Warm Homes Plan sets out a major reset of consumer protection and quality assurance in home upgrades. For installers who currently rely on existing funding pathways, such as the ECO scheme, there is understandable apprehension about how this framework will operate in practice. While we wait for further clarity on the plan, there is already encouraging support for installers in the interim. The government have acknowledged the challenges facing installers. Ed Miliband, the Secretary of State for Energy Security and Net Zero, commented in his Warm Homes Plan statement:
“We want the extra money, the £1.5 billion allocated at the Budget, to help the installers, because they are going to face a difficult transition.” ***
The government commits to helping installers with this longer term framework. They assure that the Warm Homes Plan will place greater emphasis on design and performance, with clear delivery structures that maintain standards across the home improvement industry. They will partner with the Trades Union Congress on a task force to support high-quality roles in low-carbon sectors.
They aim to give installers the confidence to invest in skills and systems backed by the government’s own investment in boosting British innovation. The goal is to have 70% of heat pumps made locally in the UK by 2035*. To meet these targets, the plan assigns £7 million annually to the Heat Training Grant from 2026 to 2029*, with extra funding for skills, innovation, and UK manufacturing. These commitments take steps to strengthen benefits for British workers and businesses. Additionally, up to £90 million will be allocated from 2027-30* via the Heat Pump Investment Accelerator Competition.
How HIES will continue to support our installers in 2026
HIES exists to address a gap in consumer protection and credibility in the home renewable energy market. We have been in discussions with the government and key stakeholders to ensure this next phase of the retrofit industry supports consumers and installers alike, while raising industry standards for everyone.
Faisal Hussain, CEO of The Home Insulation and Energy Systems Quality Assured Contractors Scheme (HIES) advises the installer community:
“We strongly urge installers who previously relied on ECO to now look at different revenue opportunities you could benefit from, and we are on hand to help you with this.
We have a dedicated team whose primary purpose is to serve our membership base. Please reach out to your account manager, who can assist you with the opportunities available. Let’s work together to secure your business for the long term!”
If you want to learn more about how HIES can help your business, please reach out to your account manager, who can assist you with the opportunities available. If you’re interested in becoming a HIES member, fill out our online form, and one of our team will be in touch.