Government announces fresh range of changes to bring down energy costs

Energy Secretary Ed Miliband has set out a package of measures designed to reduce the country’s dependence on volatile costs of fossil fuels.

Recent polling carried out for the End Fuel Poverty Coalition found that 77% of the public agreed that ‘history just keeps repeating itself with energy prices’ and 72% felt that ‘our reliance on oil and gas makes us vulnerable to global price shocks.’ [1]

Ministers have backed the public’s view, arguing that two fossil fuel shocks in less than five years demonstrate that “the era of fossil fuel security is over, and the era of clean energy security must come of age.”

As part of the package of measures, the Government has increased support for households using heating oil and LPG to move to heat pumps by raising the boiler upgrade scheme grants to a total of £9,000. Moves will also be taken to make installing heat pumps easier in flats.

An additional £100 million in funding will help deliver energy upgrades to 100,000 social homes through the Warm Homes Plan, on top of the £1.2 billion pledged earlier this year.

A £25 million pilot scheme, delivered via local authorities and mayors, will install plug-in solar panels for low-income households.

Measures taken by the Chancellor include a new carrot and stick approach to reforming the cost of some electricity generation where energy firms are incentivised to lower prices by moving to new contracts or face higher windfall taxes.

Other announcements include:

  • A cross-government drive to build renewables on public estate land and expand solar-installation support for schools and colleges.
  • Legislation and consultation to expand EV charging provision, including cross-pavement charging, new and renovated buildings and easier access for renters and leaseholders.
  • A wide-ranging overhaul of planning, land access and grid connection rules to speed up clean energy infrastructure.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented

“Every spike in global gas markets feeds directly into household energy costs, and people in fuel poverty often pay the heaviest price.

“Research shows that the public understands this and wants to take action, but needs support to invest in energy efficiency measures.

“Any speeding up of the Warm Homes Plan will deliver more support to households quicker than planned. However, delivery through this Plan must include locally provided, specialist advice to ensure households choose the right options and a Warm Homes Guarantee so that consumers are sure to see the benefits of new technology.

“With bills forecast to rise from July, moves to get energy efficiency measures into homes and plans to delink the cost of gas from electricity bills can’t come soon enough. But until these reforms take effect, it’s clear that households will also need support with their energy costs.

“The households most exposed to that increase need support now, not just long-term structural change. That means help for those on low incomes, in poorly insulated homes, or relying on heating oil and LPG outside the price cap.”

Gavin Smart, chief executive, Chartered Institute of Housing, said:

“As another international crisis starts to push energy bills even higher, it is right that the government looks to accelerate the Warm Homes Plan.

“Every piece of loft insulation or solar panel that we install helps to keep homes warmer and cheaper to power, while reducing our reliance on volatile fossil fuel markets. CIH and our members will continue to support the government with this work in these crucial months before next winter.”

Jonathan Bean from Fuel Poverty Action, added:

“Any progress is welcome, but we are still a million miles from fair and affordable energy for all.  Without bigger changes, millions of people will still face cold homes and unaffordable electricity prices.

“Our energy system will still be dominated by huge profits and high prices.  Half-baked plans for air-to-air heat pumps and plug-in solar will still fail most people living in flats.

“Those most in need will still not get their fair share of the cheap clean energy we are generating.  Government must make green fair, and deliver on its election promise to reduce bills by £300.”

National Energy Action responded on LinkedIn, commenting:

“Measures that deliver genuinely cheaper and more stable electricity prices for households, with a particular focus on those on low incomes or experiencing energy debt, are positive for those in fuel poverty. Any market intervention should be assessed against a clear test: whether it reduces energy bills in practice and improves affordability, enabling fuel poor households to heat their homes to a safe and adequate standard.

“More funding for heating oil and LPG customers in the Boiler Upgrade Scheme offers an opportunity to reduce their reliance on volatile fossil fuel markets. Many LPG households experience deep vulnerability, often combining low incomes with high levels of disability or long‑term illness. To be effective and equitable, the scheme must proactively reach and support low‑income, fuel poor households, particularly those who are least likely to seek support independently. Failure to do so risks excluding those who stand to benefit most.

“Additional funding for the Social Housing Fund has the potential to progress the government’s fuel poverty targets. Around 13% of social renters live in fuel poverty, and increased investment can deliver warmer, healthier homes for some of the most financially vulnerable households

“Increased support for low‑income households to access plug‑in solar will benefit fuel poor households, as a significant proportion live in flats, where rooftop solar is harder to obtain. Plug‑in solar can enable these households to benefit from self‑generation and reduced reliance on the grid. This support should be accompanied by clear advice on optimal tariffs and integrated with energy efficiency measures, such as insulation, to maximise bill reductions and long‑term affordability.”

ENDS

[1] Survation were commissioned by the End Fuel Poverty Coalition to interview 2,047 people from 2-7 April 2026. Data were weighted to the profile of the UK. Data was weighted by respondent’s sex, age, region, household income, highest qualification, and past vote (GE24, EU16). Research tables are available here.