The Builders Merchants Federation (BMF) has warned that the Government’s £15bn Warm Homes Plan risks falling short unless it prioritises a fabric-first approach to home upgrades.

The trade body said energy efficiency measures such as heat pumps, solar panels and battery storage will fail to deliver intended benefits if homes are not properly insulated beforehand.

Insulation seen as critical to retrofit success

John Newcomb, chief executive of the BMF, said the federation supports efforts to improve the thermal performance of the UK’s housing stock but raised concerns about the balance of measures set out in the plan.

“We support all efforts to improve the thermal and energy performance of homes, and welcome the £15 billion allocated under the Warm Homes Plan,” he said.

“The long-overdue announcement is timely, as many BMF members are currently reviewing their trading forecasts for the next two to three years and looking at investment decisions and staffing levels.”

However, Newcomb said insulation had not been given sufficient weight within the programme.

“We are concerned that, while there is support from Government on measures including solar panels, battery storage and heat pumps in the plan, there is a lack of focus on insulation,” he said.

“It seems illogical that a £7,500 Boiler Upgrade Scheme grant can be claimed, without measures to properly insulate homes first.”

Fabric-first approach backed by merchants

Newcomb said insulation remains fundamental to reducing heat loss, lowering energy demand and supporting low-carbon heating technologies.

“Insulation reduces heat loss, lowers energy demands and cuts bills. It is essential to support low carbon heating technologies,” he added.

“We will be calling on Government to ensure that it is not only given greater emphasis in the plan, but measures are introduced to ensure it is installed professionally, with a focus on quality, for customer reassurance and maximum efficiency.”

Mike Beard, merchant development director at The Encon Group and chair of the BMF’s Insulation and Dry-Lining Forum, echoed those concerns.

“It’s good to see details of the Warm Homes Plan and to understand how Government proposes to deliver its manifesto commitment to spend £15 billion to lower energy costs and improve the quality of our existing housing stock,” he said.

“However, it’s imperative that we don’t lose sight of the need for fabric first, well-insulated properties, and insulation plays a key part in this.”

Quality and competence highlighted

Beard warned that poorly sequenced retrofit measures could undermine performance outcomes.

“It’s essential to deliver efficiency measures with consideration to other thermally efficient solutions too otherwise it will be like running a bath and not putting the plug in,” he said.

“It is also vital that the new scheme is supported by robust checks and balances so everyone can have confidence in investing in quality, professional installations.”