Full Breakdown
UK Government Allocates £15.6 million to Upgrade Heat Networks, Aiming to Cut Bills and Fuel Poverty
5/20/2026, 11:39:37 PM
Funding Announcement and Scope
On 20 May 2026 the UK government announced £15.6 million under Heat Network Efficiency Scheme (HNES) to upgrade 94 heat networks in England and Wales. Funding will replace leaky pipes, insulate pipework and install new heat interface units to cut heating costs. An £25 million allocation will back four projects delivering clean heat to more homes and businesses.
Warm Homes Plan Context
Part of the Warm Homes Plan, the upgrades earmark £195 million for the Green Heat Network Fund and £15 million for HNES to 2030, responding to Middle-East conflict and the need to reduce reliance on imported fossil fuels.
Key Projects
Key projects include: a £13.5 million expansion of the Bristol City Leap heat-pump network, creating over 1,000 jobs; a £1 million sewer-heat scheme in Rochdale serving schools, the infirmary and social housing; a £1.2 million upgrade of heating in three Salford tower blocks; £2.1 million upgrades in Solihull (484 homes) and Camden (358 homes); an £8.6 million King’s Cross scheme heating 1,700 homes and 44 buildings with heat pumps; and a £2.2 million Atherstone project using waste-heat for 1,700 homes. They target 10,000 residents, hospitals and charities.
Data Snapshot
Funding totals £40.6 million, covering upgrades to 94 networks that will affect over 10,000 people and create 1,000 jobs in Bristol.
Official Statements
Minister Martin McCluskey said heat networks cut bills, boost energy security and meet the 2030 clean-power goal; HNES Programme Manager Louise Singleton said the scheme aims to reduce customer detriment and lift households out of fuel poverty; Salix Homes Director Glenn Martin called the Salford upgrades a step toward modernising homes, cutting carbon emissions and making heating more affordable.
Verbatim Quotes
- “He said: “The conflict in the Middle East has shown once again why we must get off the fossil fuel rollercoaster and onto clean, homegrown power we control.” — Martin McCluskey, Minister for Energy Consumers
- “Heat networks will play a crucial role in that shift, lowering bills for whole communities while strengthening our energy security.” — Martin McCluskey, Minister for Energy Consumers
- “That’s why we’re upgrading old and inefficient systems and investing in modern, low-cost networks fit for the future.” — Martin McCluskey, Minister for Energy Consumers
- “He added: “These upgrades will reduce energy use and cut carbon emissions, while also helping to ease pressure on household energy costs at a time when many people continue to feel the impact of rising bills.” — Glenn Martin, Director of Investment, Development and Sustainability, Salix Homes
Next Steps
Work on the upgrades starts in 2027, with progress reports to the Department for Energy Security and Net Zero. The government will track bill reductions and carbon-emission metrics to gauge progress toward the 2030 clean-energy goal.
