William Eichler 22 July 2026

Khan launches £58m fund to cut energy bills

Khan launches £58m fund to cut energy bills  image
© Snap Crackle Pop / Shutterstock.com.

The Mayor of London, Sadiq Khan, has announced more than £58m in new funding to improve the energy efficiency of up to 5,000 homes across the capital, saving residents in low-income households up to £500 a year on their energy bills.

The Home Energy Saving Fund, worth £58.7m, forms London's share of a £295m Government retrofit programme for social housing under the national £15bn Warm Homes Plan. It marks the first devolved retrofit funding for the capital, giving the Mayor new powers to target support at London's specific needs.

Around 10% of Londoners are currently living in fuel poverty. Many homes across the city are old or poorly insulated, making them hard to heat in winter and prone to overheating in summer, with an estimated one million homes at high risk of extreme heat.

The funding will pay for insulation, solar panels and heat pumps, cutting emissions by an estimated 107 kilotonnes while improving air quality and reducing damp and mould.

It builds on the Mayor's Warmer Homes London programme, which has already retrofitted more than 1,000 homes, and will be delivered through local authorities and housing associations across the city.

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‘Thousands of Londoners are living in inadequate homes that are freezing and damp in winter and unbearably hot during summer heatwaves,’ Mayor Khan said.

‘With this new funding, we can transform these homes for the future, making them more energy efficient, while also driving down bills and improving living conditions.’

Mete Coban, deputy mayor for Environment and Energy, and Warmer Homes London Co-Chair added: ‘I welcome this significant investment from Government which enables us to urgently scale up retrofit across the city, improving the energy efficiency of Londoners’ homes and delivering on our net zero commitments.’

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