The government's Warm Homes Plan has promised to deliver £15 billion as part of a universal upgrade offer to consumers. They estimate that up to five million homes could be helped by 2030. The scheme is broken down into 6 main funding blocks:
- £5 billion for low-income schemes including direct support towards lowering bills
- £2.7 billion as the Warm Homes Fund as investments and loans in the home upgrade sector.
- £2.7 billion budgeted for the Boiler Upgrade Scheme (BUS), which was £1.5 billion. The options available to consumers has also been increased.
- £2 billion towards consumer loans which will be low- and zero-interest, making it easier for households to afford upfront costs required to improve homes.
- £1.5 billion for the Warm Homes Plan Programmes and Devolved Administrations (WHPPDA) to account for the devolved administrative parts of the United Kingdom.
- £1.1 billion for Heat Networks such as District Heating systems
The plan is a 'universal offer' for consumers to improve their energy efficiency with funds, grants, and low-interest loans for solar panels, batteries, heat pumps, and other equipment. The consumers mentioned as examples include homeowners, households in fuel poverty, social housing residents, private tenants, and new build homeowners.
What does the plan aim to do?
The main aim of the plan is similar to HeatingSave's mission statement: reduce the amount of energy needed to keep a property at a comfortable temperature. This will then make homes warmer and more energy efficient, which will reduce fuel poverty and decrease energy bills.
To achieve this, money is being made available for households to upgrade and improve their property. This includes home clean energy products like solar panels and heat pumps, home and heat batteries, insulation and draught proofing, smart controls, and energy management systems like HeatingSave!
Why has this become a priority?
The government press release cites the Russian invasion of Ukraine in 2022 as a key factor in the UK energy crisis. The effects of the invasion have led to massive instability in global fossil fuel markets, particularly natural gas prices. As the UK uses gas-fired boilers in around 86% of households, the UK has been impacted by this in a far greater manner than other comparable European countries because 86% of households in England are heated by a gas-fired boiler. Because of this, the typical household energy price cap went from £1,277 in the winter of 2021-2022, to well over £4,000 in January 2023.
If you or someone you know are struggling with fuel poverty and the effects of the energy crisis, help is available from National Energy Action (NEA) - the UK's leading fuel poverty charity.
