The Government has placed social housing upgrades at the centre of its new £15 billion Warm Homes Plan, unveiled today as part of a decade‑long effort to cut bills, tackle fuel poverty and modernise Britain’s ageing housing stock.
Ministers say the programme will deliver the largest investment in social housing energy efficiency in a generation, with a major share of funding directed towards improving cold, damp and inefficient homes across the sector.
The announcement was made alongside a refreshed Fuel Poverty Strategy for England, which identifies social housing as a critical battleground in the fight to reduce energy inequality.
The Government argues that improving social housing first will deliver the fastest and fairest gains, as tenants are disproportionately affected by high energy costs and poor‑quality insulation.
Major retrofit drive for social landlords
Under the plan, councils and housing associations will receive expanded funding to install insulation, heat pumps, solar panels, smart heating controls and other energy‑saving measures. The Government says these upgrades will help reduce bills for millions of tenants while cutting carbon emissions and improving long‑term health outcomes.
Energy Secretary Ed Miliband said the Warm Homes Plan would help millions of households “benefit from solar panels, batteries, heat pumps and insulation that can cut energy bills,” adding that the programme would “lift up to one million families out of fuel poverty” through targeted support for the lowest‑income households — many of whom live in social housing.
Support for low‑income households and renters
Around £5 billion of the investment is ring-fenced for low‑income and fuel‑poor households, including those in the private rented sector. Social landlords will be able to apply for large‑scale funding packages to upgrade entire estates, while private landlords will face tighter minimum energy‑efficiency standards.
A new system of low‑ and zero‑interest loans will also be available to homeowners, but ministers emphasised that social housing remains the priority for early delivery.
Fuel Poverty Strategy reinforces social housing focus
The updated Fuel Poverty Strategy highlights the role of social housing providers in delivering high‑quality, large‑scale retrofit programmes. It also commits to improving standards, strengthening consumer protections and ensuring vulnerable tenants receive tailored support.
Sector reaction
Housing associations and retrofit specialists welcomed the renewed focus on social housing, noting that large‑scale upgrades offer economies of scale and faster carbon reductions. However, campaigners warned that delivery must be backed by strong oversight, installer training and long‑term funding certainty.
Scotland’s Housing Secretary criticised the announcement for failing to address the underlying cost of electricity, arguing that high unit prices remain a barrier to widespread adoption of electric heating technologies.
Deepika Singhal, head of ESG and sustainability at built environment consultancy Hollis, said: “The Warm Homes Plan marks a much-needed step forward in tackling energy poverty whilst supporting the ambitious net zero target of 2050.
“The £15 billion investment will bring welcome relief to households hit hardest by poorly insulated, damp and cold homes.
“But the hard work starts now. A clear and accountable timetable is urgently needed to guarantee that this funding reaches the most vulnerable households first and is implemented by a skilled workforce to ensure the best outcomes possible.”
A long‑term pipeline for the retrofit industry
The Government says the Warm Homes Plan will create a stable pipeline of work for installers, manufacturers and contractors, supporting thousands of jobs across the energy‑efficiency and clean‑tech sectors.
With millions of social homes still below EPC band C, ministers argue the programme is essential to reducing national energy demand and protecting low‑income tenants from volatile global energy markets.
Funding Routes for Social Landlords Under the Warm Homes Plan
1. Social Housing Decarbonisation Fund (SHDF) – Expanded Allocation
The Warm Homes Plan significantly boosts the SHDF, giving councils and housing associations access to multi‑year funding for:
• Insulation upgrades
• Low‑carbon heating (including heat pumps)
• Solar PV and battery storage
• Ventilation and damp‑prevention measures
The Government says the expanded fund is designed to support large‑scale, estate‑wide retrofit programmes, reducing administrative burden and enabling long‑term planning.
2. Fully Funded Upgrades for Low‑Income Tenants
Around £5 billion of the Warm Homes Plan is ring‑fenced for low‑income and fuel‑poor households.
For social landlords, this means:
• Free, tailored retrofit packages for eligible tenants
• Priority access for homes with the lowest EPC ratings
• Support for properties where tenants face the highest energy‑cost burden
This stream is expected to be delivered through local authorities working in partnership with registered providers.
3. Local Authority Delivery Partnerships
Councils will be encouraged to form regional retrofit partnerships with housing associations to bid for larger funding blocks.
Benefits include:
• Shared procurement
• Consistent standards across regions
• Economies of scale
• Faster delivery timelines
This model mirrors successful approaches used in previous SHDF waves.
4. Zero‑ and Low‑Interest Loan Schemes
While primarily aimed at homeowners, the new loan framework also opens the door for:
• Portfolio‑level borrowing by housing associations
• Financing for technologies such as heat pumps and solar PV
• Blended funding models combining grants and low‑cost finance
This route is expected to appeal to larger providers with established asset‑management strategies.
5. Private Rented Sector Minimum Standards – Compliance Support
Although targeted at private landlords, the Government has confirmed that social landlords will also be eligible for certain compliance‑support grants where:
• Stock falls below new minimum EPC standards
• Properties require complex or high‑cost upgrades
• Tenants are at risk of fuel poverty
• This ensures parity across the rented sector.
6. Innovation and Demonstrator Funding
A portion of the Warm Homes Plan is reserved for:
• Pilot projects
• New retrofit technologies
• Whole‑home and whole‑street demonstrators
• Data‑driven energy‑efficiency trials
Social landlords with strong innovation track records will be well placed to secure this funding.
7. Future Revenue Streams
The Government has signalled that social landlords may benefit from:
• Export tariffs for solar generation
• Demand‑flexibility payments
• Smart‑grid participation incentives
These revenue streams can help offset long‑term operating costs and support reinvestment in further upgrades.
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