Government commits to expanding heat network reach across England
The government has announced plans to double the capacity of local heat networks, aiming to provide lower heating bills and cleaner energy for households across the country.
Key points
- Government aims for heat networks to meet 7% of England's heat demand within ten years.
- Almost £35 million has been allocated to improve efficiency for over 10,000 residents already using heat networks.
- New heat networks are now supplying low-carbon heat to locations including Seaham Garden Village and Lancaster University.
Minister for Local Energy and Jobs, Martin McCluskey, recently outlined a strategy to increase the use of heat networks as part of the country’s energy transition. The government aims to see these systems provide one-fifth of all heat in England by 2050.
Speaking at an industry conference on 23 October 2026, the Minister confirmed that over £200 million has been granted to twenty low-carbon projects over the last year. These initiatives use diverse sources like rivers and data centres to supply energy.
Improving existing networks
The government is currently supporting 65 projects through the Heat Network Efficiency Scheme. This funding is designed to make existing systems more reliable and effective for the thousands of residents who depend on them for their heating.
Officials stated they are working to provide the industry with the stability needed to grow. By creating a better economic environment, the government hopes to lower the costs of developing low-carbon heat solutions for the public.
New infrastructure projects
Heat networks are described as a central part of the government's Warm Homes Plan, which intends to upgrade millions of properties nationwide. Projects are currently being developed in several areas, including Sunderland, Stockport, Oldham, and Milton Keynes.
The scheme has also been expanded to allow projects in Wales to apply for financial support. These networks use various heat sources, such as energy from waste plants and large-scale heat pumps, to deliver power to local communities.
What it means for you
- There is no immediate change for your household bills today.
- If you are connected to a heat network, your provider may eventually receive funding for efficiency improvements.
- The government is working to reduce overall costs for low-carbon heating systems in the future.
Sources
We compared these reports before writing and checked every figure, date and name in this story against them. Read them for the full detail.
- GOV.UK (Department for Energy Security and Net Zero): The role of heat networks in the energy transition (23 Oct)
Spotted a mistake? Email [email protected]. This story was written with AI from the reports above and checked against them; it is not financial advice.
