The Department for Energy Security and Net Zero said the plan would save households hundreds of pounds on their energy bills and would help lift almost one million families out of fuel poverty by 2030.
The programme has three pillars, which include direct support for low-income families, so low-income households will receive “packages of upgrades” for their homes free of charge and backed by £5bn of investment. The type of upgrade will depend on which technologies are “most suitable”.
Home upgrades available include solar panels, heat pumps, home and heat batteries, smart controls, insulation and draught proofing.
An example could be families being able to receive fully funded installations of solar panels and a battery to the full average cost of £9,000-12,000.
The Department for Energy Security and Net Zero said it would set out more details later this year on how consumers will be able to access lower-interest loans after “further engagement with the finance sector and consumer groups”.
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The other pillar is a government-backed, zero- and low-interest loan programme to get solar panels onto the nation’s rooftops and new guidance that every new home will have solar panels by default.
The Department for Energy Security and Net Zero said it aimed to triple the number of homes with solar panels on their rooftops by 2050.
There will also be a £7,500 universal grant for heat pumps and the first-ever offer for ‘air-to-air heat pumps’ that can also cool homes in the summer.
The Warm Homes Plan also includes new protections for renters and said it would support landlords to make upgrades in a “fair way over the several years”. This will lift around half a million families out of fuel poverty by 2030.
The update added that there would be a Warm Homes Agency, which would “bring together existing functions from across the regulator and other government arms-length bodies, providing new consumer support while removing duplication and waste in the current delivery landscape”.
Local mayors will also be in the “driving seat” for rolling out home upgrades in their area and the plan aims to create an additional 180,000 jobs in energy efficiency and clean heating by 2040.
The Warm Homes Plan will also unlock £38bn of investment across the Parliament.
Prime Minister Keir Starmer said: “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain. Today’s plan marks a turning point. It will help to slash energy costs and lift up to a million people out of fuel poverty.
“This is a government bearing down on the cost-of-living crisis. By driving bills down for good and upgrading millions of homes, we’re giving people the security and the fair shot they need to get on in life.”
Energy Secretary Ed Miliband said: “It is a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe.
“With this investment, we embark on a national project to turn the tide – waging war on fuel poverty and taking another step forward in tackling the affordability crisis for families throughout Britain.”
The Warm Homes Plan was one of Labour’s manifesto commitments, with the party saying at the time that it would offer grants and low-interest loans to “support investment in insulation and other improvements such as solar panels, batteries and low-carbon heating to cut bills”.
It had been suggested that spray foam reforms could be laid out in this plan, but this was not mentioned in the initial announcement.
