Warm Homes Plan Green Home Finance Strategic Partnership

Martin McCluskey speaking

The Green Home Finance Strategic Partnership is a new government-backed partnership designed to develop a mass market for green home finance as part of the Warm Homes Plan. Bringing together financial institutions, energy providers, consumer groups, and government it aims to expand access to universal financial products to help households install energy saving upgrades and cut bills, if and when they want to.

The Green Finance Institute will co-chair the partnership and use its market expertise to drive this growth through practical levers and interventions for both government and the lending sector. The Secretariat will be co-run by DESNZ and GFI with thematic Working Groups led by industry leaders to co-develop pilot projects, toolkits, and policy recommendations to stimulate product development and drive market growth. Working Groups will leverage wider cross-industry expertise in addition to the Steering Group members. Building on its success expanding green mortgages and loans, GFI will coordinate an industry Working Group to help design the financial solutions to help households access efficiency upgrades to cut bills, and enjoy warmer, cleaner homes.

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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.”

Minister for Energy Consumers Martin McCluskey and Co-Chair of the Green Home Finance Strategic Partnership

Martin McCluskey

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.”

Dr Rhian-Mari Thomas OBE, Chief Executive Officer and Co-Chair of the Green Home Finance Strategic Partnership

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Governance structure

Co-Chairs:

  • Martin McCluskey, Minister for Energy Consumers at Department for Energy & Net Zero
  • Dr Rhian-Mari Thomas OBE, Chief Executive Officer at the Green Finance Institute

Secretariat provided by: DESNZ Green Home Finance Team and GFI Built Environment Programme

Steering Group members: 

  • 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 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)

Steering Group Members

The Taskforce’s Terms of Reference.

FAQs

Please note that the following FAQs relate to the GFI's role in the Warm Homes Plan Green Home Finance Strategic Partnership.

1. What is the Green Home Finance Strategic Partnership?

Over its planned 12-month lifespan, the Partnership, which is backed by government, consumer groups, finance, and industry, will work together to remove barriers and unlock innovative products for owner-occupiers and private landlords.

Focused on practical delivery, the Partnership will agree a shared roadmap for scaling green home finance products, develop practical solutions for lenders and government to take forward, and begin widening access to affordable home upgrade finance.

Financial solutions will likely include products such as green mortgages, unsecured green home loans, Property Linked Finance, and subscription/Heat-as-a-Service models, and potentially more. The products will leverage a combination of public and private money, with grants expected to support for fuel-poor households and low-interest financial solutions to deliver appropriate financial solutions for all, as appropriate.

2. Who is involved in this work?

The Green Home Finance Strategic Partnership will work collaboratively with financial institutions, energy providers, consumer groups, and government to build on previous programmes and initiatives. The Partnership Steering Group includes C-suite and relevant Executive Committee representation from Barclays, Citizens Advice, Energy Saving Trust, Energy UK, Finance and Leasing Association, HSBC, Lloyds Banking Group, Nationwide, NatWest , Nesta, UK Finance, and the UK Green Building Council. The Working Groups will include wider representation from across the relevant sectors.

3. What will the Working Groups focus on?

The Partnership’s Working Groups focus on developing practical solutions and strategies to address finance and the consumer journey.

  • 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)

4. What gaps in the current home energy financing landscape are you aiming to fill?

Although many banks already offer these products, further policies are essential to enhance their accessibility in-line with the universal ambition as set out in the UK Government’s Warm Homes Plan. This includes measures to increase demand for the technologies and ensure financial solutions do not present obstacles. Government support is crucial in mitigating risks, lowering borrowing costs, and standardising assessments and consumer protections, particularly for emerging technologies like heat pumps and solar panels. These technologies have varying payback periods and performance based on property types.

Consumer protection and the Credit Consumer Act (CCA) are also key considerations. According to UK Finance, 54% of consumers see high upfront costs as the main barrier to installing heat pumps, while 44% would switch if the savings were more transparent. Moreover, research indicates that the UK needs to significantly increase the installation rates of heat pumps to meet future demands.

5. What role will GFI play as co-chair?

As Co‑Chair alongside the Minister for Energy Consumers, Martin McCluskey MP, GFI CEO Dr Rhian‑Mari Thomas OBE will guide strategic direction, ensure alignment between public and private finance and help remove market barriers to scaling green home upgrades. Her role is to convene industry, government and consumer groups to co‑design solutions that can be deployed rapidly and at national scale.

citizens advice

“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.”

Dame Clare Moriarty

Chief Executive, Citizens Advice

“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.”

Jatin Patel

Co-Head of Retail Banking, at Barclays UK, said:

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“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.”

Mike Thornton

Chief Executive , Energy Saving Trust

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“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.”

Dhara Vyas

Chief Executive, Energy UK

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“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.”

Shanika Amarasekara MBE

Chief Executive Officer, Finance and Leasing Association

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“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.”

Jose Carvalho

CEO Retail Banking and Wealth, HSBC UK

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“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.”

Henry Jordan

Group Director of Mortgages and Member of UK Executive Committee, Nationwide

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“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.”

Barry Connolly

Managing Director, Home Ownership and Customer Borrowing, and member of the Executive Committee of NatWest Retail Bank

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“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.”

Ravi Gurumurthy

Chief Executive Officer , Nesta

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“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”.

David Postings

CEO , UK Finance

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"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.”

Simon McWhirter

CEO, UK Green Building Council

If your organisation would like to explore ways to get involved in the Partnership, please get in touch with the Green Finance Institute team at built.environment@gfi.green

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