In a new blog, our Head of Business Services, Alison, looks at what the Government’s new Warm Homes Plan means for rural Cambridgeshire.

 

Cambridgeshire ACRE welcomes the Government’s new Warm Homes Plan – announced in January 2026 – a significant national investment designed to help households cut their energy bills, stay warm & healthy and transition to clean, affordable home heating.

For rural areas like ours, where homes are often older, harder to heat and more expensive to upgrade, the Warm Homes Plan has the potential to make a real difference. And through our Cambridgeshire Home Energy Support Service, we’ve seen first‑hand why this support is so urgently needed.

A step forward for rural households

Rural homes face particular challenges when it comes to energy efficiency. Many are off the gas grid, rely on costly fuels such as oil or LPG, or have solid walls, limited insulation and larger spaces to heat. The Warm Homes Plan recognises this. It includes:

• Direct support for low‑income households in both on‑ and off‑gas‑grid areas
• Grants for installing heat pumps, solar panels and home batteries
• Zero‑ and low‑interest loans to help with upfront costs
• A commitment that “the vast majority of rural homes are suitable for a heat pump”
• Support for alternative solutions where heat pumps are harder to install
• Investment to help social landlords upgrade rural homes in districts including South Cambridgeshire

Importantly, the Government acknowledges that 2.2 million rural homes currently rely on high‑cost fossil fuels. Measures that help these households access affordable clean heating are not just welcome, they’re essential.

What we’re seeing locally through our Cambridgeshire Home Energy Support Service (CHESS) project

Through CHESS, Cambridgeshire ACRE supports households who are struggling with their energy bills or living in cold, damp homes. Every day our team meets people who are:

• choosing between heating and eating,
• coping with mould linked to under‑heating,
• living in older homes that are difficult to insulate, and
• relying on electric storage heaters that are expensive to run.

These stories mirror the national evidence that fuel poverty hits rural communities hard, especially where residents face higher fuel costs, limited public transport and fewer local support services.

The Warm Homes Plan’s ambition to lift up to one million households out of fuel poverty by 2030 aligns strongly with what we know rural communities need: practical help, fairer access to energy‑saving technologies, and a system that prioritises warmth, health and dignity for everyone.

Why this matters for the health and wellbeing of rural residents

Cold homes have long‑term consequences. National figures show that living in a cold, damp property increases the risk of respiratory and cardiovascular illness and contributes to avoidable winter deaths. Through CHESS we see the human side of these statistics – parents worried about their children’s health, older residents sleeping in just one heated room, and carers trying to manage health conditions in homes that are simply not warm enough.

The Warm Homes Plan’s focus on insulation, ventilation and affordable clean heating provides a vital opportunity to improve rural health outcomes while reducing household bills.

A chance to tackle long‑standing barriers

For too long, rural households have been at a disadvantage when it comes to home upgrades. Challenges include:

• high upfront costs
• lack of trusted installers in remote areas
• uncertainty about which technologies are suitable
• planning complexities for older or listed buildings

The creation of a new Warm Homes Agency and a more joined‑up, consumer‑friendly system has the potential to make navigating home upgrades simpler and more accessible.

We also welcome recognition that some rural homes may need alternatives to heat pumps – such as heat batteries or biomass – and that innovation will continue to shape the best solutions for harder‑to‑treat properties.

Looking ahead

This plan is not a quick fix. But if implemented well, it could mark a turning point for rural households who have been disproportionately affected by the energy crisis.

At Cambridgeshire ACRE, we will continue to:

• champion the needs of rural residents,
• deliver practical energy advice and support through CHESS,
• work with parish councils, social landlords and community groups,
• and ensure that people across Cambridgeshire can access the upgrades and advice they need to stay warm, safe and healthy.

Rural communities deserve homes that are fit for the future. The Warm Homes Plan is a promising step towards that goal and we look forward to working with partners locally and nationally to help bring its benefits to the people who need them most.