The Warm Homes Plan: What We Know So Far About the New Insulation Scheme

The government's Warm Homes Plan has been announced as a flagship policy to improve the energy efficiency of Britain's housing stock. Details have been released gradually, and while the full programme isn't operational yet, here's what we know so far.

What's been announced

The headline commitment is to upgrade 5 million homes over the parliament, with a particular focus on:

• Insulation (loft, cavity wall, solid wall, floor)
• Low-carbon heating (primarily heat pumps)


• Window upgrades for the worst-performing homes


• Targeting fuel-poor households first

The budget is reported at £13.2 billion over the parliament, though the year-by-year allocation hasn't been finalised.

Who's likely to qualify?

Based on the announcements and leaked details, the scheme will likely prioritise:

1. Low-income households (benefits recipients, household income under £31,000)
2. EPC D, E, F, and G rated homes (starting with the worst)


3. Off-gas-grid properties (harder to heat, fewer alternatives)


4. Social housing (separate strand working with housing associations)

Middle-income homeowners may be eligible for subsidised (not free) upgrades, likely through low-interest loans or partial grants. The exact thresholds aren't confirmed.

What you can do right now

Don't wait for the Warm Homes Plan to start improving your home. Several schemes are already running:

Boiler Upgrade Scheme: £7,500 off a heat pump. Available now to all homeowners.

ECO4: Free insulation and heating for eligible low-income households. Ask your energy supplier if you qualify.

Great British Insulation Scheme: Targets homes in council tax bands A-D in England and A-E in Scotland. Covers single measures like cavity wall insulation.

0% VAT: Solar panels, heat pumps, insulation, and battery storage all benefit from 0% VAT, saving 20% on the cost.

Check our complete government grants guide for eligibility details on all current schemes.

The insulation-first principle

Whatever the Warm Homes Plan delivers, the principle is sound: insulate first, then add low-carbon heating. A heat pump in a poorly insulated home has to work harder, costs more to run, and may not keep you comfortable.

If your home is draughty, has uninsulated loft or walls, or has an EPC below C, insulation should be your first investment. It's the cheapest improvement with the fastest payback.

Our recommendation

Don't pause your plans waiting for a government scheme that may take months to reach your area. The best time to improve your home's efficiency is now. Start with the free measures we outlined, then work through insulation, and consider solar panels or a heat pump while current grants are available.

If the Warm Homes Plan delivers additional funding later, that's a bonus. But the savings you make in the meantime are real money.