What is the Warm Homes Plan?
The UK Government’s Warm Homes Plan is a long-term programme designed to improve home energy performance and accelerate the shift to low-carbon heating. It brings together grants, low-cost finance, and higher building standards under a single, simplified framework. Over time, it will replace today’s patchwork of schemes such as ECO4 and the Boiler Upgrade Scheme (BUS).
How much funding is available?
Total funding: £15 billion
Delivery period: Late 2020s through to the late 2030s
Annual scale: Roughly £1.1 – 1.2 billion per year, like the combined annual spend of ECO4 and BUS today
Funding structure: Primarily taxpayer-funded, with a reformed supplier obligation (the future Warm Homes Obligation) expected to sit underneath the programme
Although the headline figure is large, the annual funding level is broadly in line with current spending, the main change is long-term certainty and a more coherent structure.
What support will be available?
Low-carbon heating
Grants for heat pumps, including air-to-air systems
BUS continues in the short term, but support will transition into the Warm Homes Plan
Energy efficiency (fabric-first)
Insulation and ventilation upgrades
Whole-house assessments to ensure measures are sequenced correctly
Solar PV and battery storage
Zero- or low-interest loans for solar and storage
New-build homes expected to include solar as standard
Targeted support for low-income households
Free or heavily subsidised upgrades
Delivered through local authorities and the future Warm Homes Obligation
Social housing and area-based retrofit
Block-by-block or street-by-street upgrades to capture economies of scale
Stronger role for local authorities and housing associations
How does this relate to ECO4 and BUS?
ECO4
Ends March 2026
Will be replaced by a reformed supplier obligation (the Warm Homes Obligation) aligned with the Warm Homes Plan
Focus remains on low-income and fuel-poor households
BUS
Continues in the short term with the £7,500 heat pump grant
Expected to be absorbed into the Warm Homes Plan as the main route for heat pump support
Overall
The Warm Homes Plan becomes the primary framework for domestic retrofit, replacing the fragmented landscape of ECO, BUS, GBIS, and other schemes.
What are the benefits?
Predictability: A long-term programme gives households, landlords, and installers confidence to plan
Simplification: Fewer overlapping schemes and clearer routes to support
Whole-house approach: Fabric, heating, solar, and storage considered together
Fairness: Stronger support for low-income households and social housing
Future-proofing: Higher standards for new homes reduce future retrofit needs
What are the limitations and uncertainties?
Funding level: Annual funding is like today’s ECO4 + BUS spend. Overall, it doesn’t look like not a major uplift to current level
Political risk: Future governments may change, rebrand, or reduce the scheme
Phased rollout: Full implementation may take several years (2026–2028)
Delivery capacity: Success depends on skilled installers, good design, and strong quality assurance
Loan design: Uptake will depend on credit checks, interest rates, and whether loans are property-linked
What should you do now?
For homeowners and landlords
Commission a whole-house energy assessment to identify the best sequence of measures
Monitor final details of grants and loan products as they are released
Consider early action on fabric measures to prepare for low-carbon heating
For social housing providers and community organisations
Begin portfolio-level planning to take advantage of area-based funding
Engage early on design, specification, and procurement to avoid rushed installs
Prepare data and stock assessments to move quickly when funding windows open
Engage early on design and specification to avoid rushed, low-quality installs.
Learn more about the plan in this document: Warm Homes Plan
