The UK government has unveiled a £1.8 billion investment package aimed at improving energy efficiency in up to 170,000 homes across England, with a particular focus on low-income and social housing residents. The initiative, delivered through the Warm Homes Plan, is designed to help households cut energy bills and reduce carbon emissions in support of the country’s legally binding net-zero target by 2050.
The funding will support a wide range of energy-saving measures, including insulation upgrades, double glazing, solar panel installations, and the rollout of low-carbon heat pumps. These improvements are expected to save households hundreds of pounds each year on their energy bills, according to the Department for Energy Security and Net Zero.
“Many families are still grappling with the effects of high energy prices, largely driven by the UK’s exposure to volatile global gas markets,” the department said in a statement. “This funding could now help households save considerably while reducing dependence on fossil fuels.”
The bulk of the investment will be channelled through two main programmes: the Warm Homes: Social Housing Fund, which will receive £1.29 billion, and the Warm Homes: Local Authority Grant, allocated £500 million. The former will benefit 144 retrofit projects across England, while the latter will be distributed to 73 projects spanning 270 local authorities.
The funding announcement comes amid broader efforts by the government to address fuel poverty and improve living standards through its “Plan for Change”, which includes ambitions to raise Real Household Disposable Income. It also aligns with ongoing initiatives such as the £500 million Winter Package and an extension of the Household Support Fund.
Miatta Fahnbulleh, the newly appointed Minister for Energy Consumers, emphasised the social equity aspect of the programme. “Living in a warm, comfortable home should not be a luxury. It is a right that has been out of reach for too many people for too long,” she said.
Regional authorities such as the West Midlands Combined Authority and Greater Manchester Combined Authority are among those set to benefit, receiving support under the Warm Homes and Public Sector Decarbonisation Devolution Programme.
Kate Henderson, Chief Executive of the National Housing Federation, welcomed the investment. “This is a crucial step towards the government’s commitment to tackling fuel poverty and decarbonising England’s social homes,” she said.
Gavin Smart, CEO of the Chartered Institute for Housing, added that the funding would enable social landlords to continue critical retrofit work. “This will help reduce carbon emissions, cut energy bills for tenants, and make homes more comfortable to live in,” he said.
The announcement comes as banks and private sector institutions also step up support for domestic energy efficiency. For example, [Barclays has launched a Greener Home Reward pilot scheme](https://esgnews.com/barclays-pilots-greener-home-reward-to-support-energy-efficiency-related-home-improvements/) offering incentives for homeowners to undertake sustainability upgrades.
The £1.8 billion package is one of the largest investments in residential decarbonisation made by the UK government and reflects growing momentum behind the transition to cleaner, more affordable energy for households across the country.
