The Warm Homes Agency: A Critical Crossroads for Energy Efficiency and Lower Bills

   


By David Lennan, Chairman, National Warm Homes Council

The new Warm Homes Agency (WHA) is a UK government body announced in January 2026 to streamline, regulate and deliver energy efficiency upgrades to 5 million homes by 2030. Its launch has generated considerable surprise within the energy efficiency and retrofit sectors, given that it was not widely discussed or anticipated. However, as the industry grapples with the details of the agency's creation, significant concerns are emerging about its effectiveness in delivering its mandate and whether it can address the underlying challenges of the energy transition?

The new Warm Homes Agency (WHA) is a UK government body announced in January 2026 to streamline, regulate and deliver energy efficiency upgrades to 5 million homes by 2030. Its launch has generated considerable surprise within the energy efficiency and retrofit sectors, given that it was not widely discussed or anticipated. However, as the industry grapples with the details of the agency's creation, significant concerns are emerging about its effectiveness in delivering its mandate and whether it can address the underlying challenges of the energy transition.

The government’s Warm Homes Plan (WHP), which sets out the creation of the agency, is currently a work in progress. Despite its promise, significant questions remain about how and when the agency will become operational. The plan aims to support the goal of retrofitting 13 million homes; however, there is a growing sense that this vision is insufficiently funded and lacks the robust leadership necessary for success. It is clear that, like previous initiatives, this plan risks becoming another short-term project rather than a long-term solution to the nation’s energy efficiency challenges.

The agency’s role, as set out, will involve the management of energy efficiency programmes, potentially acting as a key player in influencing policy direction and public behaviour. However, its credibility and effectiveness are being questioned. With many civil servants transitioning from other roles, there are concerns about the agency’s capacity to adapt and effectively oversee a national retrofit strategy. The experience of previous similar initiatives, such as the Regional Development Agencies (RDAs), which faced difficulties in their initial years, raises concerns that the WHA may suffer from similar teething problems, delaying meaningful action until the end of this parliament.

One of the biggest hurdles for the WHA is its focus on clean technologies, such as heat pumps, without adequately addressing the need for foundational improvements, such as insulation. While heat pumps are a promising solution, their effectiveness is significantly diminished without adequate insulation. The WHP mentions insulation, but it is buried within a larger document and lacks a clear, comprehensive strategy to support widespread installation, particularly in privately owned homes.

Critics argue that the focus on heat pumps and similar technologies reflects a "green bling" mentality – a politically appealing but ultimately superficial solution that fails to address the root causes of inefficiency. The emphasis on new technologies risks overshadowing the more fundamental need for insulation in buildings, which is essential for improving energy efficiency. Without a holistic, "fabric-first" approach that prioritises insulation before installing new technologies, the government risks repeating past mistakes, leading to ineffective outcomes and higher bills for consumers.

This oversight is not only a technical issue; it has significant economic implications. If the government continues to prioritise heat pumps without addressing insulation needs, the cost of installing these technologies could lead to higher energy bills for homeowners, particularly in older properties. The situation could result in a "heat pump scandal", where consumers find themselves with increased costs and ineffective energy solutions, undermining the credibility of both the technology and the government’s broader energy transition efforts.

Furthermore, the insulation sector faces a precarious future. With many government programmes already scaled back or eliminated, the industry is struggling to maintain a skilled workforce. The retrofitting industry, which once employed hundreds of thousands of workers, now faces a potential collapse, unable to meet the growing demand for energy-efficient solutions. This is exacerbated by a lack of training and long-term workforce planning, which has led to a shortage of qualified professionals in the retrofit sector.

To avoid a prolonged energy crisis, the WHA must be more than a glorified helpline. It needs to deliver an integrated approach to retrofitting, with a clear focus on the full spectrum of energy efficiency measures, not just individual technologies. A true Apollo mission for retrofitting homes must integrate insulation, renewable energy technologies and carbon reduction measures in a way that complements each other. The success of the agency will depend on whether it can bring together these elements, providing a clear pathway for homeowners, landlords and the wider industry.

For policymakers, the success of the WHA will ultimately depend on their willingness to provide leadership and resources to support an integrated retrofit programme. This means not just a top-down approach but creating an environment that encourages innovation, supports industry collaboration, and most importantly, ensures that insulation remains a central component of the retrofit strategy.

As the WHA begins to take shape, policymakers must recognise that the energy transition is not just about the adoption of new technologies but also about fixing the fundamentals. Without a comprehensive approach to both clean technologies and insulation, the mission to retrofit the nation's homes will likely fail, leaving us with higher bills and worsening energy poverty. Now is the time for a bold, strategic approach that puts consumers and the long-term health of the retrofit industry first.  

www.nwhc.org.uk

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