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Published 21 Jan 2026

4 min read

New plan to cut energy bills and upgrade homes

The government has launched a £15bn plan to upgrade people’s homes and cut their energy bills.

New plan to cut energy bills and upgrade homes
James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 21 January 2026

Ministers hope the new Warm Homes Plan will ease cost-of-living pressures for families across the country and lift up to a million households out of fuel poverty by 2030.

It should also mean that newly built homes will be cheaper to run.

Low-income households to benefit

As part of the Warm Homes Plan, low-income households will get support that covers the full cost of installing upgrades like rooftop solar panels.

On average, installing solar panels and a battery would cost between £9,000 and £12,000.

So this could make a big difference to households who would normally be unable to afford green upgrades and are already struggling with high energy bills.

The plan will also see multiple social housing properties upgraded at the same time.

Support for renters

People living in private rented accommodation will also benefit from the plan.

Stronger insulation and heating standards for rented homes are to be introduced and support for landlords to make these upgrades will be made available.

Warm Homes Plan marks a turning point, says PM

The government has described the Warm Homes Plan as the “biggest home upgrade plan in British history”.

And prime minister Sir Keir Starmer believes it “marks a turning point” in the cost-of-living crisis.

“A warm home shouldn’t be a privilege,” he said.

“It should be a basic guarantee for every family in Britain.

“By driving bills down for good and upgrading millions of homes, we’re giving people the security and the fair shot they need to get on in life.”

Energy secretary Ed Miliband added that the government is “waging war on fuel poverty”.

“It is a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe,” he commented.

What help can I get with energy costs right now?

If you’re feeling weighed down by the price of gas and electricity, there are options available.

Contact your supplier

The first thing you should do is speak to your supplier and find out how they can help.

They might provide support such as:

  • grants
  • payment plans
  • advice on managing your account

It could also be worth joining the Priority Services Register for extra support.

Save energy at home

You can also cut your bills by trying to use less energy where you can.

Making small changes like not overfilling the kettle or turning down your thermostat by one degree can add up to real savings.

We’ve put together a list of 50 smart energy-saving tips to help you get started.

Find out what benefits you could claim

You might already be eligible for support such as the warm home discount or winter fuel payments.

But it’s still worth seeing what other help is available, such as:

  • housing benefit
  • council tax discount
  • free TV licence if you’re over 75 

Try our free benefits calculator to find out if you’re getting all the support you’re entitled to receive. 

Or give us a call and we’ll have a look for you.

Look at your spending

identify how much money you have coming and 

Make sure you know how much money you have coming in and where it’s going.

You might be able to work out where savings can be made and prioritise your spending, so your energy bill doesn’t feel quite as daunting.

Check out our guide to how to create a budget to get started, and give our budget planner a try.

Deal with problem debts

If you’re struggling with debt, contact us for confidential, practical and impartial debt advice.

James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

James has spent almost 20 years writing news articles, guides and features, with a strong focus on the legal and financial services sectors.

Published: 21 January 2026

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 21 January 2026

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