Earth & Nature Energy Health & Science

Warm Homes Plan expected to play central role in reducing UK energy bills

Engineer installing an air source heat pump on a residential building
  • The UK Government’s forthcoming Warm Homes Plan is expected to outline nearly £15bn of public investment to cut household energy bills and tackle fuel poverty.

  • Stronger private rental energy efficiency standards could save renters around £300 per year, if properly enforced.

  • Public investment could reduce household bills by £1.8bn, support 40,000 jobs, and cut energy use equivalent to 1.5 nuclear power stations.

  • New Future Homes Standards aim to prevent new homes being built with fossil fuel boilers, lowering long-term energy costs.

  • Analysis highlights the need to reduce UK gas dependence to protect households from future price shocks.

The forthcoming Warm Homes Plan energy bills package is expected to set out how the UK Government intends to reduce household energy costs through large-scale investment in energy efficiency and clean technologies, according to new analysis from E3G.

Due to be published before the end of January, the Warm Homes Plan is expected to outline nearly £15 billion of public funding alongside new regulations aimed at improving housing efficiency, accelerating clean energy deployment and addressing fuel poverty.

Warm Homes Plan energy bills and rental efficiency standards

A central element of the plan is expected to be stronger minimum energy efficiency standards for privately rented homes. Labour committed in its election manifesto to requiring rental properties to meet higher standards, with claims this could save renters hundreds of pounds a year on their energy bills.

Analysis by E3G suggests that raising rental properties to Energy Performance Certificate (EPC) level C could reduce average energy bills for renters by around £300 per year, provided the standards are supported by effective enforcement.

The approach could also unlock billions of pounds of private investment in insulation and home improvements, supporting job creation and aligning with wider economic growth objectives.

Public investment and local delivery

The Government confirmed in the November Budget that £14.7 billion has been set aside for the Warm Homes Plan, following an