After his first year in post, The MCS Foundation’s CEO Garry Felgate reflects on the progress made in 2025 and what the Warm Homes Plan must deliver to decarbonise homes, heat and energy. 

For those of us working to increase access to affordable, clean energy, there was much to be encouraged by in 2025. From the lifting of some of the more onerous planning restrictions for heat pumps, which will enable more homes than ever to install heat pumps, to expansion of the Boiler Upgrade Scheme to include a wider range of low-carbon technologies, to a record year for MCS certified solar panel installations – levels not seen since 2011 – the evidence of progress is strong.  

Yet as the new year begins, the top priorities for Government, if it wants to continue progress, must be to deliver certainty for the renewables sector and lower electricity bills – which the British public has said is of highest importance, according to recent research.  

The upcoming Warm Homes Plan should be seen as the opportunity to deliver on those priorities. The announcement that the Energy Company Obligation (ECO4) will end from April 2026 has left a sizeable hole in financial support to enable the most vulnerable, low-income households access affordable, clean energy. The Warm Homes Plan must set out clear details on how support will be provided for these groups following the end of ECO4, together with providing a clear roadmap for how the UK will reach the Climate Change Committee target of 1.5m heat pump installations a year by 2035.  

The Warm Homes Plan must also set a definitive direction towards the phasing out of fossil fuel boilers. If we are to meet the government’s legally binding climate targets, then there has to be a point where we no longer install boilers that would continue to pollute. Setting 2035 as a date when no new boilers can be installed would give the heating sector the confidence it needs to rapidly scale up the installations of clean heating systems. 

To provide confidence for the public, the Government must ensure that households see the full financial benefits of installing low-carbon heating such as heat pumps and heat batteries. That means addressing the “spark gap” – the difference between the cost of gas and electricity – and cutting the cost of electricity, which we believe is most effectively done by moving social and environmental levies from electricity bills into general taxation. The Autumn Budget saw some progress on that front, with the temporary funding of 75% of the Renewables Obligation through the Treasury. Yet this is only a first step: research commissioned by The MCS Foundation shows that moving all social and environmental levies into general taxation could take the savings for households up to as much as £300 a year.  This would be a game-changer for making low carbon heating technologies affordable and accessible. The other measures in the Warm Homes Plan will only reach their full effectiveness if that action is taken. 

If the Government can deliver on these priorities in the Warm Homes Plan, it will be a big step forward for decarbonising homes, heat and energy, and delivering lower bills for those who need it most.