The UK Government has finally published the Warm Homes Plan, and with it comes a vital opportunity to address fuel poverty. It signals central investment that could lift households out of fuel poverty, improve health and wellbeing, and support progress toward net zero. The key question is whether the plan, as set out, will deliver for people who need it most, and what still requires clarity.
Warm Homes Plan funding will help low-income households, alongside new regulations
Around £5 billion of central investment, alongside new regulation for rented properties, is earmarked to lift 1 million households out of fuel poverty by 2030. Local authorities and social housing providers will remain central delivery partners, which should help reach some of the most fuel poor areas in England.
Delivery will initially run through the Warm Homes Social Housing Fund and the Warm Homes Local Grant, before both are consolidated into a single area-based scheme. Further detail is promised by spring 2026. This will be essential for councils, social landlords, supply chains and households preparing to upgrade homes.
The government has confirmed it will strengthen minimum energy efficiency standards in the private and social rented sectors by 2030. Renters have waited nearly nine years since the original intention to extend standards in the private rented sector was set out. Regulations should now be laid swiftly so landlords can plan and begin improvements, and so local authorities have as much time as possible to resource and enforce the new requirements. Effective enforcement, combined with targeted support for smaller landlords who need it, is essential to protect tenants and reduce bills.
This comes after the Budget decision to end the GB-wide Energy Company Obligation, which changes the landscape for support. With ECO closing, replacement routes must be timely and reliable to maintain momentum, protect installer capacity and avoid gaps for low-income households.
Technologies and finance, making them work for low-income households
The Boiler Upgrade Scheme budget will increase, meaning an expansion of heat pump delivery. Alongside this, the plan signals a wider range of technologies for households to choose from. There is a commitment to triple the number of homes with solar through a new loan scheme, the Warm Homes Fund. In total, the plan points to £5 billion in financial transactions, including £1.7 billion already committed to low and zero interest consumer loans. Six hundred million pounds of the Warm Homes Fund is earmarked for low-income households.
This is promising but is currently the least detailed part of the plan. Loans are often less suitable for low-income households, so careful design will be needed to ensure the £600 million is used to best effect. More generally, loans must be simple and fair, paired with grants, safeguards and practical advice. People will need clear information on lifetime costs, performance in different property types, and what recourse exists if things go wrong.
A Warm Homes Agency that reaches those most at risk
A new Warm Homes Agency will act as a dedicated public body, providing information and support to households, backed by a reformed consumer protection regime and changes to the Microgeneration Certification Scheme. Specifications for the agency are due to be developed through the remainder of 2026, and work is already under way to improve protections.
For National Energy Action, the test is whether the agency can reach people facing multiple and severe challenges. This includes households with very limited incomes, those with poor prior experiences of energy schemes, people living with long-term illness or disability, and anyone with low confidence in retrofit. Many people perceive retrofit or new technologies as disruptive or risky.
Without trusted, practical support, they will not proceed, even when funding is available.
Our experience is that these barriers can be overcome by working with locally embedded partners who are trusted by communities. These colleagues explain benefits in plain terms and provide hands on help before, during and after installation, including liaising with installers and resolving snags. This practical support is the connective tissue between busy lives and the funding that pays for upgrades. It should be designed into the agency from day one, with resourcing, service standards and accountability.
The 2026 Fuel Poverty Strategy
The Fuel Poverty Strategy for England has also been published. It retains the legal 2030 target to upgrade as many fuel poor homes as reasonably practicable to EPC Band C. The strategy now presents this as a milestone rather than an end point and sets a near-term aim to lift 1 million additional households out of fuel poverty by 2030. The government will consult on a new legal framework for the period after 2030 and will continue to measure fuel poverty using a household’s income and energy efficiency levels. A clear trajectory beyond 2030 will matter for industry capacity, public consent and long-term planning.
So, does the plan deliver for fuel poor households?
The detail presented is very welcome and it signals that government will continue to invest in this essential area. However, we do not yet have the full delivery architecture to ensure benefits reach those who need them most.
National Energy Action believes three things are needed next:
- Specific decisions on how low-income schemes will evolve, including how grants and loans combine, how eligibility will work, and how the end of ECO will be managed without leaving people behind.
- A practical national-to-local model for non-digital advice and support that includes trusted partners, clear complaint and remediation routes, as well as protections that work for households, installers and lenders.
- Cross-government embedding of the plan, including links to the Ten Year Health Plan, local authority enforcement and outcomes frameworks, and the new Child Poverty Strategy. This requires commitment and co-ordination more than money. The reward is a plan that supports vulnerable households rather than mainly early adopters with more resources.
National Energy Action will work with ministers, civil servants, mayors, councils, landlords, the NHS, energy companies and community organisations to translate this plan into warmer, healthier homes with lower bills. With the right choices now, 1 million households can be lifted from fuel poverty by 2030, and many more can follow.
In short, the plan creates the potential to take a lot of households out of fuel poverty. Whether it delivers or not will be down to how the words on paper translate to action on the ground.
National Energy Action will be hosting their Annual Conference and Exhibition from Monday 9 February to Wednesday 11 February 2026, exploring how these policy drivers can unlock new approaches to end fuel poverty on a national and local level. You can read more at this link: https://www.nea.org.uk/annual-conference-2026/
