Industry partnership opens the door for a universal home upgrade offer delivering benefits of the Warm Homes Plan

by Green Finance Institute | February 3, 2026

• The Department for Energy Security & Net Zero establishes Green Home Finance Strategic Partnership in effort to accelerate growth of the UK green home finance market as part of the Warm Homes Plan, in collaboration with the Green Finance Institute
• The Partnership aims to mobilise billions in private capital to underpin the Warm Homes Plan’s universal offer for households to upgrade homes if and when they want to
• The Partnership’s Steering Group, co-chaired by Minister Martin McCluskey and Dr Rhian-Mari Thomas OBE will work across finance, government, consumer groups and industry to scale green finance innovation

London, UK, 3 February 2026 – The Government’s recently published Warm Homes Plan announced the establishment of a Strategic Partnership with the green home finance sector to build and diversify the range of green financing options available to homeowners. The Government and the Green Finance Institute today announce the formal launch of the Green Home Finance Strategic Partnership, co-chaired by Martin McCluskey, Minister for Energy Consumers at Department for Energy & Net Zero (DESNZ) and Dr Rhian-Mari Thomas OBE, Chief Executive Officer at the Green Finance Institute (GFI), and supported by Secretary of State Ed Miliband. The Partnership will help develop a mass market for green home finance in the UK, enabling consumers to upgrade their homes as and when they want to.

The Committee on Climate Change estimates £373 billion is needed to decarbonise the UK’s built environment by 2050 with 65-90% required from the private sector.[1] To meet this challenge, a broad range of accessible financial provisions must be developed by the market to support the diversity of households who could benefit from private green finance. Although 70% of homeowners are seeking more energy-efficient homes, access to financial products to support upgrades like solar panels, batteries, and heat pumps is not currently universal.[2]

The Partnership will target the practical levers and interventions for both government and the lending sector to develop and deploy domestic green home finance solutions, to create a mass market by 2030 to underpin delivery of a universal Warm Homes Plan. Working through a cross-sector steering group of financial institutions, energy providers, consumer groups, and government the Partnership will build on previous programmes and initiatives to scale green home finance solutions helping households access home upgrades to cut bills, and enjoy warmer, cleaner homes.

Steering Group members include Barclays, Citizens Advice, Energy Saving Trust, Energy UK, the Finance and Leasing Association, HSBC, Lloyds Banking Group, Nationwide, NatWest, Nesta, UK Finance, and the UK Green Building Council.

To date, as an independent advisor to governments and investors, GFI’s work has helped scale the UK green mortgage market from four products to more than 90 and tripled the availability of unsecured green home loans. As Co-Chair alongside, DESNZ, GFI will ensure that these products, alongside other solutions, can be scaled to deliver an offer for all households. Doing so requires a combination of public and private finance, including grants for fuel-poor households and low-interest financial solutions. The Strategic Partnership will translate ambition into practical, consumer-focussed outcomes that enable delivery of lower bills, improved comfort and decarbonisation benefits for non fuel-poor households to underpin the delivery of the government’s Warm Homes Plan.

The Secretariat will be co-run by DESNZ and GFI with thematic Working Groups led by industry leaders to co-develop policy recommendations and co-deliver practical solutions to stimulate scalable product development and drive market growth. The four Working Groups will be made up of wider cross-industry expertise in addition to the Steering Group members and build on previous work and focus on innovation and incentives, providing industry insight to help shape the government’s low-cost loan initiative, driving consumer demand and standardised consumer journeys, and enhanced consumer protections and standards.

Martin McCluskey, Minister for Energy Consumers and Co-Chair of the Green Home Finance Strategic Partnership, said: “Our Warm Homes Plan will deliver upgrades and lower energy bills for up to five million homes across the country. To do this we will work with industry to make it easier for everyone to access a wide range of financing options that will make heat pumps and solar panels more affordable. Forming this Strategic Partnership with some of the biggest names in finance, research and innovation, and consumer protection will ensure the financing and support is there to upgrade the nation’s homes and drive down bills for good.”

Dr Rhian-Mari Thomas OBE, Chief Executive Officer, Green Finance Institute, and Co-Chair of the Green Home Finance Strategic Partnership, said: “This partnership established as part of the Warm Homes Plan unites banks to deliver green finance products, consumer advocates to represent households, government to enable access through grants and loans, and industry to drive energy efficiency upgrades. Together, these stakeholders share one goal: scale green home finance to make upgrades accessible for 5 million homes, creating warmer, healthier, and more affordable living across the UK.”

Within a year, the Partnership will have created a clear, shared roadmap for scaling green home finance, produced practical solutions for lenders and government, and begun widening access to affordable home‑upgrade finance for households. It will have aligned industry, government and finance leaders behind targeted interventions, strengthened the market for investment, and put households closer to lower bills, warmer homes and low‑carbon heating through simpler, more accessible financial options. 

Additional quotes:

Jatin Patel, Co-Head of Retail Banking at Barclays UK, said: “Delivering on the ambitions of the Warm Homes Plan will require collaboration across industry, from lenders like us through to energy providers, civil society and government. I’m therefore pleased to be joining this partnership, which creates the cross-industry network we need to make warmer, more energy efficient homes both affordable and practical.”

Dame Clare Moriarty, Chief Executive at Citizens Advice, said: “Green finance will only succeed if consumers benefit from clear advice and strong protections. People must be confident that green home upgrades cut bills, will be completed to a high standard and fixed if they go wrong. Citizens Advice is excited to champion consumers in this partnership. Building this trust will help grow demand and enable the Government to achieve their ambitions for the Warm Homes Plan.”

Mike Thornton, Chief Executive at Energy Saving Trust, said: “I’m pleased to be part of this important partnership following the publication of the Warm Homes Plan last week. Delivering upgrades to five million homes will require a range of attractive, green finance options to reduce upfront costs and encourage people to take action in their homes. Energy Saving Trust is ready to put our expertise to work so more people can benefit from warmer, more affordable homes.”

Dhara Vyas, Chief Executive of Energy UK, said: “Supporting more households to access low-carbon technologies like heat pumps, solar panels, and batteries relies on unlocking billions of pounds of investment by scaling up green home finance. We look forward to working with DESNZ, GFI and businesses to ensure that effective consumer protections are in place to drive market expansion in a way that benefits households across the UK.”

Shanika Amarasekara MBE, Chief Executive Officer at the Finance and Leasing Association, said: “The FLA welcomes this Strategic Partnership with GFI and our role on its panel. It supports shared priorities on innovation, growth, and delivery of the Warm Homes Plan. I look forward to joining the Steering Group which will bring together differing pools of expertise, including access to finance, to ensure that the green proposition is compelling for households. The FLA is committed to work together with industry and government to decarbonise.”

Jose Carvalho, CEO Retail Banking and Wealth at HSBC UK, said: “At HSBC UK we are committed to supporting our customers as the pace of the energy transition accelerates. We look forward to working as part of the new partnership to ensure that the green home finance market meets customers’ needs in the short and long term.”

Andrew Asaam, Homes Director and Member of the Consumer Lending Executive Committee, Lloyds Banking Group, said: “We are committed to helping ensure that homes across the UK are warm, affordable and energy efficient. But only through sustained collaboration between government, industry and civil society will the green home finance market become a long-term enabler of a mass market for green home upgrades. It’s in that spirit we’re delighted to join the Green Home Finance Strategic Partnership to help accelerate this market wide change.”

Henry Jordan, Group Director of Mortgages and Member of the Executive Committee at Nationwide, said: “Nationwide is committed to supporting its customers to make their homes more energy efficient, but this is a challenge which can’t be tackled by one sector alone. We are pleased the Government is bringing together this strategic partnership to unite financial services providers, the energy sector and consumer groups to unlock the changes needed to make homes resilient for the future.”

Barry Connolly, Managing Director for Home Ownership and Customer Borrowing, and member of the Executive Committee of NatWest Retail Bank, said: “The effort to decarbonize the UK’s housing stock is one that requires both an industry-wide approach and innovative policymaking. As such, we are proud to take up a position as a steering partner on the Green Home Finance Strategic Partnership. Our customers are increasingly aware of the energy efficiency of their homes and the Government’s Warm Homes Plan has some ambitious and wide-ranging targets. We are committed to supporting all initiatives that aim to make green home upgrades as available and accessible to as many of our customers as possible.”

Ravi Gurumurthy, Chief Executive Officer at Nesta, said: “Heat pumps, solar panels and batteries can cut consumer bills and carbon emissions, and with the launch of the Warm Homes Plan we’ve got a huge opportunity to help many more households take up these technologies. Affordable, accessible finance will be crucial to making this work, and the Green Homes Strategic Partnership will help turn this ambition into reality.”

David Postings, CEO of UK Finance said: “The financial services sector is committed to helping deliver a warmer, greener housing stock. This is an important issue for the UK, and I am really pleased to be part of the Steering Group of the Green Home Finance Strategic Partnership. As consumer demand increases, accessible and well-designed financial products will have a key role to play in enabling an inclusive and fair transition.”

Simon McWhirter, CEO, UK Green Building Council: “The scale of upgrades needed demands new thinking on finance. UKGBC is delighted to join this Strategic Partnership to help develop practical, householder-focused solutions that unlock private investment and make warm, low-carbon homes the easy choice. We look forward to continuing our leadership in this space, with previous campaigns on retrofit investment and stamp duty reform and contributing ideas that turn ambition into delivery.”

Strategic Partnership Membership

• Co-chair: Martin McCluskey, Minister for Energy Consumers at Department for Energy Security and Net Zero (DESNZ)
• Co-chair: Dr Rhian-Mari Thomas OBE, Chief Executive Officer at the Green Finance Institute (GFI)
• Jatin Patel, Member of UK Executive Team and Co‑Head of Retail Banking for Barclays UK
• Dame Clare Moriarty, Chief Executive at Citizens Advice
• Mike Thornton, Chief Executive at Energy Saving Trust
• Dhara Vyas, Chief Executive at Energy UK
• Shanika Amarasekara MBE, Chief Executive Officer at the Finance and Leasing Association
• Jose Carvalho, Chief Executive Officer of Retail Banking and Wealth for HSBC UK
• Andrew Asaam, Homes Director and Member of the Consumer Lending Executive Committee, Lloyds Banking Group
• Henry Jordan, Group Director of Mortgages and Member of the Executive Committee at Nationwide
• Barry Connolly, Managing Director for Home Ownership & Customer Borrowing, and Member of the Executive Committee of NatWest Retail Bank
• Ravi Gurumurthy, Chief Executive Officer at Nesta
• David Postings, Chief Executive at UK Finance
• Simon McWhirter, Chief Executive Officer at UK Green Building Council

Working Groups

• UK Finance will chair Working Group 1 which will focus on innovation and incentives
• Green Finance Institute will chair Working Group 2 which will focus on providing industry insight to help shape the government-backed loan initiatives
• Nesta and the Finance & Leasing Association will co-chair Working Group 3 which will focus on driving demand and standardised consumer journeys
• Energy UK will chair Working Group 4 which will focus on enhanced consumer protections and standards (as relating to finance)

[1] https://www.theccc.org.uk/publication/the-seventh-carbon-budget/

[2] https://home.barclays/content/dam/home-barclays/documents/news/Insights/Barclays_Electrifying_the_future_report_FINAL.pdf

More information on the Warm Homes Plan here.