Prime Highlights:
- The government will not phase out new gas boilers, focusing instead on incentives for cleaner heating, insulation, and energy efficiency.
- The plan aims to help households save money on energy bills while promoting greener homes.
Key Facts:
- £15 billion will be invested to upgrade homes with heat pumps, insulation, and other energy-saving improvements.
- Households could reduce annual energy bills by up to £1,000 under the plan.
Background:
The UK won’t ban new gas boilers, instead investing in cleaner heating, insulation, and energy-saving upgrades. The move is aimed at reducing household energy bills by up to £1,000 a year while easing the cost-of-living crisis.
Unveiled by Energy Secretary Ed Miliband, the plan is Labour’s largest public investment to date in upgrading homes and is expected to benefit around five million dwellings across the country. While the government has stepped back from a proposed ban on new gas boilers by 2035, it has allocated £2.7 billion to expand the boiler upgrade scheme, offering grants of up to £7,500 for households switching from gas boilers to heat pumps.
Miliband said the initiative is designed to ensure clean energy savings reach all sections of society. He added that rising demand for solar panels and heat pumps shows households are already seeking alternatives that lower long-term costs.
The Warm Homes Plan consists of five major funding streams in England. These include £5 billion for low-income households to install insulation, solar panels, batteries, and heat pumps; £2 billion for affordable loans; £1.1 billion for low-carbon heat networks; and £2.7 billion for innovative finance options such as green mortgages. Additional funding has been earmarked for devolved administrations.
According to analysis by research charity Nesta, households installing a combination of heat pumps, solar panels, and batteries could see annual energy bills fall from about £1,670 to £670. The government estimates that around one million people could be lifted out of fuel poverty as a result.
The plan also introduces tougher energy efficiency standards for rental properties, requiring landlords to improve insulation and heating performance. Official figures suggest fuel poverty in England could otherwise rise to nearly 2.8 million households by 2025.
Industry leaders and campaign groups have broadly welcomed the measures, though some have criticised the lack of a firm boiler ban and slower heat pump rollout targets. Environmental groups argue that stronger incentives and cheaper electricity are still needed to speed up the transition.
