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UK invests millions to lower heating costs for hundreds of thousands

gov.uk · 22 September 2026
UK invests millions to lower heating costs for hundreds of thousands
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The UK government will invest £90 million to improve and expand heat networks, providing cheaper, cleaner heating to over 750,000 homes.

Heat networks distribute heat from a central source, like factories or data centres, through pipes to multiple buildings. The funding will support both the construction of new networks and upgrades to existing, inefficient systems.

In London, a £41 million project will transport hot water via electric barges and underground tunnels to supply 650,000 homes with heat, potentially benefiting over a million residents. This system draws inspiration from similar networks already operating in cities like Copenhagen and Berlin. Elsewhere, Bradford will extend its existing network to serve 255 homes, a hospital, and several schools, funded by a £9.7 million award.

Beyond these larger projects, other areas including Solihull, Bexley, Greenwich, and Marble Arch in London, and communities in Wales, will receive millions to extend or upgrade their heat networks. Improvements will focus on fixing leaks, adding insulation, and installing better controls in homes to help residents manage their heating and lower bills. Residents of one building in Brighton are already seeing savings of £438 per year after upgrades to their heat network increased its efficiency from 35% to 50%.

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