Warm Homes Plan 2026: What £15 Billion Means for Heat Pump Owners

The government's Warm Homes Plan, announced in January 2026 as part of the Clean Energy Superpower Mission, allocates £15 billion over the parliament for home energy efficiency upgrades. This is the largest single commitment to domestic decarbonisation in UK history.

For heat pump owners and prospective buyers, the key elements are: continuation of the BUS grant (£7,500) until at least March 2028, a new Warm Homes Local Grant of up to £25,000 for low-income households in off-gas areas, and the Great British Insulation Scheme extension running alongside.

What has not changed: the BUS grant amount (still £7,500 for both air and ground source), the MCS installer requirement, and the England-and-Wales-only coverage. Scotland continues to be served by Home Energy Scotland with its own equivalent scheme.

The £15 billion figure encompasses heat pumps, insulation, solar PV, and heat network connections. Analysts estimate approximately £4 billion of this is earmarked for heat pump installations over the parliament period - enough to fund around 500,000 installations at current grant levels.

The longer-term trajectory is clear: the government intends 600,000 heat pump installations per year by 2028. At 2025 levels of approximately 100,000 per year, this represents a 6x increase. The grant and policy certainty should give homeowners and installers alike confidence to plan ahead.

Our BUS grant guide covers all current eligibility criteria and how to apply. If you are considering switching, now is an excellent time to get a survey and quotes.