In a bold move to tackle the UK’s cost-of-living crisis, the government has unveiled a £15 billion “Warm Homes Plan” that aims to overhaul 5 million dwellings and reduce energy bills by as much as £1,000 annually. The plan, spearheaded by Energy Secretary Ed Miliband, represents the largest public investment yet made into home upgrades.
The multi-faceted scheme includes £5 billion for low-income households to receive insulation, solar panels, batteries and heat pumps, as well as £2 billion in low-cost loans and £2.7 billion for a boiler upgrade programme to swap gas boilers for £7,500 heat pumps. An additional £1.1 billion will go towards heat networks, and £2.7 billion into innovative financing such as green mortgages.
Miliband emphasised the government’s commitment to ensuring every household can benefit from clean energy, stating: “We understand that clean energy can lower bills. We are seeing record demand for solar, record demand for heat pumps. We want this opportunity to be extended to everyone in our society.”
The plan is projected to lift 1 million people out of fuel poverty, with grants and subsidies for low-income households and millions more gaining access to loans to install heat pumps. Simon Francis, coordinator of the End Fuel Poverty Coalition, praised the scheme, saying it “has the potential to be the spark that finally powers millions of households out of fuel poverty.”
However, the government has opted against a proposed ban on new gas boilers by 2035, drawing criticism from some environmental groups. Instead of the recommended 600,000 annual heat pump installations, the target is set at around 450,000 by 2030.
Mike Childs, head of policy at Friends of the Earth, warned that a “carrot not stick” approach may not be enough, calling for larger grants for low-income households and investment to reduce electricity prices. Ed Matthew of the E3G thinktank also argued that the government needs to make heat pumps more affordable before introducing a boiler ban.
Overall, the Warm Homes Plan represents a significant step in the government’s efforts to tackle the UK’s cost-of-living crisis and transition towards a greener energy future, though some experts believe bolder measures may be necessary to achieve the desired impact.
