Mayor of London announces £59m fund for energy efficiency

The mayor of London has launched a new £58.7m fund to make the capital’s social homes more energy efficient.

The new Home Energy Saving Fund is backed by investment secured from central government following the launch of its Warm Homes Plan earlier this year.

City Hall said the funding would benefit up to 5,000 households living in some of London’s least energy efficient social homes and that it could help residents save up to £500 a year on energy bills.

It builds on a previous £10m investment in energy efficiency through Sadiq Khan’s Warmer Homes London programme, which was launched in March 2025 and has now upgraded more than 1,000 homes.

One in 10 Londoners are currently living in fuel poverty and much of the city’s housing stock was built before current energy efficiency regulations came into place.

“Thousands of Londoners are living in inadequate homes that are freezing and damp in winter and unbearably hot during summer heatwaves,” said Khan.

“With this new funding, we can transform these homes for the future, making them more energy efficient, while also driving down bills and improving living conditions.”

Clarion chief executive Clare Miller said the investment was “welcome news” for Londoners and said it would “support our efforts to tackle fuel poverty and provide homes that are warmer in winter, cooler in summer and healthier to live in”.

“The G15 provides homes for around one in ten Londoners and our members are already investing hundreds of millions of pounds to improve the energy performance of residents’ homes through better insulation, low-carbon heating, solar panels and other retrofit measures,” she said.

“This funding will help us go further and reach more households, making a real difference to people’s everyday lives. We also welcome the Government’s decision to devolve and bring forward this funding to London, allowing it to be targeted where it can have the greatest impact for residents.”