Sector bodies welcome allocation of £1.8bn in energy-saving upgrades for up to 170,000 homes
A number of sector bodies have welcomed the allocation of £1.8bn in funding for energy-saving upgrades for up to 170,000 homes.
The cash comes as part of the roll-out of the Warm Homes Plan, and will be provided to local authorities and social housing providers to help them deliver warmer, more energy-efficient homes in communities across England.
It will be targeted towards low-income households and tenants living in social housing, with thousands of families set to receive energy performance and clean heating upgrades in the form of insulation, solar panels and heat pumps.
Energy consumers minister Miatta Fahnbulleh said: “Living in a warm, comfortable home should not be a luxury. It is a right that has been out of reach for too many people for too long.
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“By giving this funding to local authorities and social housing providers, we are delivering on our promise to improve the homes of thousands of people across England.
“As part of our Plan for Change, we are powering on with our Warm Homes Plan, upgrading cold and draughty homes so they are warmer, cleaner and cheaper to live in.”
The government believes this funding through the Warm Homes: Local Grant and the Warm Homes: Social Housing Fund could now help households save hundreds of pounds a year.
The Warm Homes: Social Housing Fund will deliver up to £1.29bn of funding to 144 projects across England, while the Warm Homes: Local Grant will allocate £500m to 73 projects across 270 local authorities over the next three years.
A full list of successful applicants can be found here.
Kate Henderson, chief executive of the National Housing Federation, said: “We welcome this funding allocation to help decarbonise England’s social homes – a crucial step towards the government’s commitment to tackle fuel poverty.
“With the fund oversubscribed, it is clear that there is both momentum and appetite among housing associations to upgrade their homes at scale and pace. The sector is working hard to ensure all their homes meet EPC [Energy Performance Certificate] C by 2030, in line with the government’s net zero target.
“Decarbonising our homes is a win-win for residents, the government and our planet, creating warmer homes, saving residents money and tackling the climate emergency.”
Gavin Smart, chief executive of the Chartered Institute for Housing (CIH), said: “Social landlords have worked hard to improve the energy efficiency of their homes, and this funding will help them to continue that work –supporting retrofit programmes that will reduce fuel poverty, lower carbon emissions and bring down energy bills for tenants.
“The strong demand for this funding highlights how vital energy-efficiency investment is for the social housing sector. CIH will continue to work with government and our members to support the effective roll-out of this funding and advocate for the long-term investment needed to make all homes warmer and safer.”
Under the plans announced today (11 March 2025), the West Midlands Combined Authority and Greater Manchester Combined Authority will receive an allocation of this funding as part of the Warm Homes and Public Sector Decarbonisation Devolution Programme.
Tracy Harrison, chief executive of the Northern Housing Consortium (NHC), said: “The North has lots of older, colder homes – with one in five built before 1919 and almost a million households currently in fuel poverty – so this Warm Homes investment will make a big difference to people’s lives.
“NHC members, including housing associations, local authorities and combined authorities across the North, are working to tackle this by installing tens of thousands of energy-efficiency measures from heat pumps to home insulation.
“This extra funding from government is very welcome and will boost these efforts, helping to cut carbon emissions, support jobs, cut fuel bills and tackle fuel poverty.”
The NHC also welcomed the move to devolve retrofit funding in the North through the allocation of funding to Greater Manchester Combined Authority’s Integrated Settlement.
Ms Harrison added: “This will allow funding to better align with locally led plans for economic growth, training and skills provision, as well as support greater collaboration between housing providers in Greater Manchester. We know there is continuing appetite from our members to continue to make our homes more energy efficient.”
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