Warm Homes Plan: What we know so far and what we can expect
As majority of the industry are now aware, ECO4 is coming to an end. It will close at the end of March, and while there may be a nine-month extension, this is likely to exist primarily to support the scheme’s technical requirements rather than extend delivery in any meaningful way.
We also know that the Warm Homes Plan, the long-awaited government scheme intended to run alongside ECO4 and its successor, will ultimately replace the obligation. And yes, we should be clear on why this change is happening, but this article isn’t about revisiting what’s already been covered elsewhere. Instead, our focus has to shift to what comes next: the Warm Homes Plan.
Frustratingly for the industry, that plan has been repeatedly delayed. To a point, that’s understandable, the next phase of retrofit has to be done properly and competently, without repeating the failures of previous schemes. But the continued delay is now proving hugely damaging to the wider industry.
A supply chain stuck in limbo
The retrofit supply chain is entering a period of real vulnerability. With ECO4 winding down and no firm timetable for the Warm Homes Plan, thousands of businesses, from assessors and coordinators to installers and manufacturers, are facing a cliff-edge in demand. After years of scaling up to meet government ambitions, the sector is now left without a clear pipeline of work through 2025 and 2026.
That uncertainty is already slowing recruitment, investment and training. Installers report cancelled orders and reduced forward planning. Assessors and coordinators are seeing local authorities pause procurement while they wait for guidance. Manufacturers are holding back expansion because they cannot model demand. The risk is clear: if the supply chain contracts now, it will not be ready to deliver the Warm Homes Plan at scale when momentum builds in 2027.
A bridging mechanism is essential. Without an interim programme, even a modest, targeted one, the UK risks losing the workforce and capability needed to deliver its retrofit ambitions. Stability between ECO4 and the Warm Homes Plan isn’t an option: it’s the only way to protect jobs, retain skills and ensure households aren’t left waiting years for the upgrades they’ve been promised.
Positive Outcomes & Funding Opportunities
But it’s not all negative, a clear set of opportunities is emerging for Elmhurst members from the Warm Homes Plan, with major funding streams and large‑scale upgrade targets creating sustained demand for assessment, coordination, and installation services. Whilst we don’t have any CONFIRMED detail on the plan yet, an announcement could come any time now, the government is quoted as committing billions across multiple schemes, with up to 300,000 homes upgraded in 2024–25 and 170,000 more in 2025, plus a £500m Local Grant allocation for 2025–2028.
So, what do we know to date? Its worth noting that none of the below is confirmed yet, but this is what that government is intending to do.
£13.2bn Warm Homes Plan investment (2025–2030)
- Funding for insulation, heat pumps, solar panels, and tailored retrofit packages for low‑income households.
- Expected to reduce bills by up to £600 per year for households, strengthening political and public support for retrofit programmes.
- In addition, a further £1.5bn has been moved from the levy’s placed upon electricity bills and move into direct taxation. This takes the total amount of funding available to c.£15bn.
- Some of this money may be needed by the government to conclude ECO4 – see the consultation in place to ensure any over delivery by energy companies is returned and by which pot of money it can be paid from.
Warm Homes Plan (core programme)
- Multi‑year national investment to upgrade hundreds of thousands of homes with insulation, heat pumps, solar PV, and other measures.
- Designed to cut bills and improve EPC ratings, driving demand for EPCs, retrofit assessments, and installation work.
Warm Homes: Local Grant
- £500 million allocated for 2025–2028 for local authority–led upgrades.
- Targets low‑income households with EPC D–G—a large pool requiring EPCs, retrofit assessments, and coordination.
- Councils must commission home surveys before works proceed, creating direct opportunities for assessors and coordinators.
Warm Homes: Social Housing Fund
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- Supports upgrades in social housing stock (insulation, glazing, heat pumps, solar).
- Social landlords will require EPCs, stock modelling, PAS 2035 roles, and installer capacity.
What this could mean for Elmhurst Members
If the above proves to be true, and the devil as they say, is in the detail, Elmhurst believes the following is likely:
For Energy Assessors
- In previous ECO schemes, previously lodged EPCs were allowed with caveats. Elmhurst would like to see similar principles adopted within WHP – EPCs no older than 2 years and must still be reflective of the property (no material changes).
- More whole‑house assessments needed to determine suitable measures.
- Councils and housing providers will need large‑scale stock assessments and data modelling.
For Retrofit Assessors and Coordinators
- Every funded installation under PAS 2035 requires a retrofit assessment and Coordination
- Energy Reports, condition reports, occupancy assessments and improvement evaluations
- Opportunity to support councils delivering Local Grant schemes.
For Installers
- Large volumes of funded work for insulation, heat pumps, solar PV, glazing, and smart controls.
- Removal of the “one‑metre rule” for heat pumps reduces planning barriers and accelerates installation rates.
- Stronger demand for MCS and TrustMark‑registered installers.
The government now has a critical opportunity to restore confidence and momentum across the energy efficiency sector. What the supply chain needs most is clarity.
A confirmed Warm Homes Plan with detailed timelines, clear delivery phases, and transparent funding allocations. Without this, the gap between ECO4 ending and WHP beginning will widen, leaving assessors, coordinators, installers, and manufacturers without the certainty they need to invest, train, and retain skilled people.
We also need to understand how the plan can support crucial regulation such as Minimum Energy Efficiency Standards (MEES).
MEES and the Warm Homes Plan should work hand in hand: one setting the regulatory expectation, the other providing the financial and practical means to achieve it. If government wants warmer homes, lower bills, and a thriving low‑carbon economy, it must move quickly. Providing clarity is not simply an administrative task, it is the single most important step to protect the workforce, unlock investment, and ensure the UK is ready to deliver at scale for the rest of the decade.