Plan includes £5bn for low-income households and a new Warm Homes Agency with “critical role for place-based delivery”
The government’s £15bn Warm Homes programme has received a broadly positive response from the social housing sector.
The Department for Energy Security and Net Zero (DESNZ) today published the long-awaited plan which includes a universal offer of low or zero-interest loans for all households to cover the cost of solar panel installation, batteries and heat pumps.
The scheme will fund home upgrades for low-income and fuel poor households with around £5 billion of investment to 2030, including £4.4 billion in direct capital grants backed by an initial £600 million from the Warm Homes Fund.
The funding will be delivered through the existing Warm Homes Social Housing Fund (WH:SHF) and Warm Homes: Local Grant funds, before being consolidated and integrated into a single scheme.
The plan will also see the foundation of a new Warm Homes Agency, which the government said will ”bring together existing functions…and other government arms-lengths bodies, providing new consumer support while removing duplication and waste in the current delivery landscape.” Quango Salix Finance will close and its functions transferred to the new agency alongside some from within DESNZ and roles in Ofgem.
DESNZ said the agency “will have a critical role in place-based delivery”, supporting, convening and facilitating local partnerships.
Today the housing sector has been responding to the plan.
Kate Henderson, chief executive of the National Housing Federation, said she welcomed the additional certainty provided.
She said: “Today’s announcements will enable housing associations to invest in upgrading even more homes at scale and pace, and ensure social housing residents benefit from lower bills and warm, comfortable homes.
“We look forward to seeing the full detail of the Warm Homes Plan, and will continue working with the government to make all social homes fit for the future.”
Matthew Scott, policy manager at the Chartered Institute of Housing, also welcomed the plan and said a “coherent cross-tenure strategy for decarbonising homes had been missing for years.”
“We welcome the allocation of further funding to the Warm Homes: Social Housing Fund and Local Grant schemes, the significant boost for heat network improvements, and the integration of heat resilience measures into the government’s capital programmes.”
Jonathan Layzell, chief executive at Stonewater said: ““The Warm Homes Plan gives us the long-term certainty we need to invest in our homes, our communities and customers’ futures. Retrofit is not just about reducing carbon, it’s about comfort, cost and opportunity”
Simon McWhirter, chief executive officer at the UK Green Building Council said: “This Warm Homes Plan represents a vital and necessary step towards delivering comfortable, affordable and future-proofed homes and buildings across the UK.”
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