The Warm Homes Plan and existing policies to help with energy bills
The Warm Homes Plan is a policy that was in the Labour manifesto (see What the political party manifestos say on housebuilding and building safety). In government Labour formally announced the Warm Homes Plan in November 2024. It comprises a number of existing, adapted and new measures, as well as a target to lift more than 1 million households out of fuel poverty by 2030.
Some of the component parts of the Warm Homes Plan include :
- Boiler Upgrade Scheme : Grants of up to £7,500 to support the installation of air source heat pumps, ground source heat pumps and biomass boilers (currently under consultation). For more information see Boiler Upgrade Scheme
- Warm Homes Local Grant: A £500 million fund launching in 2025 to provide energy upgrades for low-income households. Introduced by the current government. For more information see Warm Homes Local Grant
- Warm Homes: Social Housing Fund Wave 3: £1.2 billion to be delivered from 2025 until 2028 by eligible social housing landlords. For more information see Waves of warmer homes grants for the rental sector
- Boosting minimum energy standards: Raising the required energy efficiency ratings for rented homes (private and social housing) by 2030. This includes proposals to make EPC (Energy Performance Certificate) Band C the minimum standard. For more information see The EPC consultation in the context of changes to the NCM
- The Warm Home Discount to help with energy bills, supporting low-income households. For more information see Warm Home Discount scheme
Other measures to help with energy bills (Research Briefing 30 September, 2024) include:
- Winter Fuel Payment; tax-free annual payment to help older people meet fuel bill costs in England and Wales. From November 2024, paid only to those in receipt of Pension Credit, other means-tested benefits, or tax credits. The Social Fund Winter Fuel Payment Regulations 2024 (16th Sept 2024) for England and Wales only.
- Cold Weather Payments; to certain recipients of Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Universal Credit, or Pension Credit in England, Wales and NI during very cold weather. From 1 November 2024 to 31 March 2025 payments will not affect benefits.
- The Winter Heating Payment; Scottish replacement for the Cold Weather Payment, the amount paid to eligible households does not depend on weather conditions. It will be paid from December 2024.
- The Household Support Fund, allows local authorities (County Councils and Unitary Authorities) in England to make discretionary payments to people most in need to help towards the rising cost of food, energy, and water bills and wider essentials. Authorities provide basic safety net support to an individual, regardless of their immigration status, such as individuals with no recourse to public funds. Extended to the end of March 2025. Payments made in arrears until December 2024/January 2025.
- The Affordable Warmth Scheme; Northern Ireland equivalent of the Warm Home Discount scheme addressing the effects of fuel poverty and energy inefficiency. The scheme is directed at low-income households and provides grant support of up to £7,500 depending on the energy efficiency measures recommended by the Technical Officer. For houses in need of solid wall insulation, the grant-aid pays up to £10,000.
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