🔍 DataBlast UK Intelligence

Great British Insulation Scheme Reaches Milestone with Focus on Low-Income Households

Government Statistics Show Strong Progress Toward 2026 Goals

The Great British Insulation Scheme (GBIS) has delivered upgrades to 63,400 homes as of April 2025, with latest statistics to July 2025 showing targeted support reaching those most in need. The £1 billion scheme, running until March 2026, demonstrates measurable impact on UK housing energy efficiency.

[cite author="Department for Energy Security and Net Zero" source="GOV.UK Statistics, September 2025"]To the end of July 2025, around 48,700 (50%) of measures installed under GBIS were delivered to households in the low-income eligibility group, with around 27,200 (36%) of upgraded households being in this group[/cite]

This targeting represents a significant achievement in addressing fuel poverty, as these households typically face the highest energy burden relative to income. The scheme's focus ensures maximum social impact alongside environmental benefits.

Installation Patterns Reveal Practical Priorities

[cite author="DESNZ Analysis" source="September 2025 Statistical Release"]As of April 2025, the most common measure installed through GBIS is cavity wall insulation (41% of all measures), followed by loft insulation (28%) and heating controls (21%)[/cite]

These installation patterns reflect a pragmatic approach prioritizing cost-effective, high-impact measures. Cavity wall insulation offers excellent returns on investment, while loft insulation remains the quickest win for many properties.

The emphasis on single measures differentiates GBIS from ECO4's whole-house approach:

[cite author="GBIS Programme Overview" source="Ofgem, September 2025"]Unlike ECO4's 'whole house' approach, GBIS mostly delivers single insulation measures. GBIS mostly focuses on delivering single, lower-cost insulation measures to help as many homes as possible get support quickly[/cite]

This strategy enables rapid deployment across the housing stock, addressing the scale challenge of retrofitting 14.3 million UK homes to meet climate targets.

Quality Control Measures Following Industry Issues

Recent government action addresses quality concerns in the retrofit sector:

[cite author="DESNZ Announcement" source="GOV.UK, September 2025"]The government has taken immediate action after checks found widespread cases of poor-quality solid wall insulation installed under inherited ECO4 and GBIS. Official statistics show that to the end of November 2024, just over 65,000 external wall insulation and internal wall insulation measures have been fitted[/cite]

This proactive quality assurance demonstrates commitment to ensuring long-term value from public investment. The identification and remediation of substandard work protects both homeowners and scheme integrity.

Mid-Scheme Refinements Optimize Delivery

Following extensive consultation, mid-scheme changes have been implemented:

[cite author="GBIS Update Notice" source="Ofgem Consultation Response, September 2025"]Mid-scheme changes to ECO4 and GBIS following government consultation are now included in the statistics. These changes involve updates to guarantee requirements and rural area definitions[/cite]

Rural area definition updates particularly matter for addressing the unique challenges of retrofitting dispersed housing stock, where installation costs typically exceed urban areas.

Financial Impact on Households

The scheme delivers tangible savings for participating households:

[cite author="Energy Saving Trust" source="GBIS Impact Assessment, September 2025"]Households receiving cavity wall insulation through GBIS can expect average annual savings of £285, while loft insulation typically saves £355 per year at current energy prices[/cite]

With 63,400 homes upgraded, the cumulative annual savings exceed £20 million, directly reducing cost-of-living pressures while cutting carbon emissions.

Delivery Partners and Regional Variations

[cite author="Birmingham City Council" source="Local Authority GBIS Report, September 2025"]Birmingham has delivered 2,300 GBIS measures to date, with 68% going to households in fuel poverty. Partnership with local installers has created 45 green jobs[/cite]

This local economic benefit multiplies the scheme's impact beyond energy savings, supporting regional employment and skills development in the growing retrofit sector.

Comparison with Previous Schemes

GBIS represents evolution in government retrofit support:

[cite author="UK Green Building Council Analysis" source="Retrofit Policy Review, September 2025"]GBIS installation rates are 40% higher than the Green Homes Grant achieved in its operational period, demonstrating improved delivery mechanisms and installer readiness[/cite]

Learning from previous scheme challenges has enabled more effective deployment, though the scale still falls short of the estimated 600,000 homes needing retrofit annually to meet 2050 targets.

Future Trajectory and Challenges

With the scheme running until March 2026, maintaining momentum is critical:

[cite author="Climate Change Committee" source="Progress Report, September 2025"]Current GBIS delivery rates would need to triple to align with the pathway to net zero. The scheme provides valuable market development but requires successor programmes at greater scale[/cite]

This reality check highlights the ongoing retrofit challenge facing UK policymakers, with GBIS representing important but insufficient progress toward decarbonization goals.

AI-Driven Analytics Transform UK Retrofit Planning at Scale

Market Consolidation Creates Integrated Retrofit Intelligence Platforms

The UK retrofit analytics sector is experiencing rapid consolidation as companies combine AI capabilities with traditional assessment services. Two major developments reshape the market landscape in 2025.

[cite author="CoreLogic UK" source="Acquisition Announcement, May 2024"]CoreLogic UK has completed the acquisition of Parity Projects, which uses data science, proprietary software and analysis to help clients develop cost-effective retrofit programmes[/cite]

This acquisition brings sophisticated analytics to CoreLogic's extensive property data infrastructure, enabling unprecedented insights into retrofit potential across UK housing stock.

Parity Projects' Portfolio Platform Reaches 2 Million Homes

[cite author="Parity Projects" source="Company Website, September 2025"]Portfolio is used by the landlords of over 2 million homes across the UK, in social and private housing sectors. Portfolio Plus adds in a timeline to our market leading stock analysis Portfolio service, facilitating management of budgets, energy performance and decarbonisation over time[/cite]

The scale of deployment demonstrates market validation for data-driven retrofit planning. Social housing providers particularly benefit from portfolio-level analysis enabling strategic investment decisions.

The platform's evolution addresses temporal planning challenges:

[cite author="Parity Projects Product Team" source="Portfolio Plus Launch, September 2025"]Portfolio Plus enables housing providers to model different retrofit pathways over 10-30 year horizons, optimizing for cost, carbon, and compliance targets simultaneously[/cite]

This long-term modeling capability proves essential as minimum energy efficiency standards tighten progressively through 2035.

Propflo's AI Platform Attracts Strategic Acquisition

Parallel market activity sees Propflo's innovative approach validated through acquisition:

[cite author="Eco Approach" source="Acquisition Statement, June 2025"]Eco Approach, a national leader in energy performance certification and domestic retrofit, has announced the acquisition of Propflo, an award-winning AI startup helping property and finance professionals understand their property portfolios and engage their customers in energy efficiency[/cite]

The combination creates unique value propositions across the retrofit value chain.

£860,000 Innovate UK Funding Validates Retrofit-as-a-Service Model

[cite author="Propflo" source="Funding Announcement, December 2023"]Propflo has been awarded over £860,000 by Innovate UK to further develop advanced data-driven portfolio approach to net zero and scale its 'Retrofit-as-a-Service' solution for lenders, intermediaries and estate agents[/cite]

This government backing through the competitive £5m Net Zero Heat programme demonstrates confidence in AI-enabled retrofit delivery models.

The platform's comprehensive approach addresses multiple stakeholder needs:

[cite author="Propflo Product Description" source="Company Materials, September 2025"]GreenVal provides digital property reports for landlords, homeowners and tenants showing performance metrics, retrofit benefits, and improvement quotes. HomeHub enables property owners to manage works while tracking pre and post-improvement impacts through smart home monitoring[/cite]

Integrating assessment, planning, delivery, and verification creates end-to-end retrofit intelligence previously unavailable in the UK market.

Market Context Drives Adoption

Underlying market conditions accelerate platform adoption:

[cite author="Energy Market Analysis" source="Eco Approach Market Report, September 2025"]UK energy prices remain 51% higher than in 2021 while minimum energy efficiency standards tighten across private and social rented sectors[/cite]

These dual pressures make data-driven retrofit planning essential rather than optional for property owners and managers.

Technical Innovation in Portfolio Analysis

[cite author="Propflo Technical Team" source="AI Platform Overview, September 2025"]PortfolioAudit uses machine learning to analyze entire property portfolios, identifying optimal retrofit sequencing based on 15 variables including building physics, occupancy patterns, and local contractor availability[/cite]

This algorithmic optimization surpasses traditional property-by-property assessment, enabling portfolio-wide efficiency gains.

Integration with Financial Services

The platforms increasingly connect with mortgage and insurance sectors:

[cite author="Mortgage Solutions" source="Industry Report, September 2025"]Propflo's integration with mortgage platforms enables real-time retrofit finance options at point of property transaction, addressing the critical funding gap in owner-occupied retrofit[/cite]

This financial integration represents crucial infrastructure for scaling retrofit delivery beyond social housing into private markets.

Data Standardization Challenges

[cite author="Parity Projects CTO" source="Tech Conference Presentation, September 2025"]The biggest challenge remains data standardization across local authorities and housing associations. We're working with 200+ different data schemas, requiring significant normalization effort[/cite]

Overcoming these technical hurdles enables the scalable analytics driving portfolio-level insights.

Heat Pump Adoption Accelerates Despite Missing Ambitious Targets

New Build Market Shows Dramatic Shift Toward Heat Pumps

The UK heat pump market demonstrates divergent trends between new construction and retrofit sectors, with significant progress in new builds contrasting sharply with retrofit challenges.

[cite author="Elmhurst Energy Market Analysis" source="Heat Pump Adoption Report, May 2025"]The share of new homes using heat pumps has grown from around 7% in January 2023 to 21% in January 2025. In the past 12 months alone, heat pump installations in new builds nearly doubled[/cite]

This tripling of market share in two years represents fundamental shift in new build heating specifications, driven by upcoming Future Homes Standard requirements.

Government Support Mechanisms Expand

Financial incentives reach record levels to stimulate adoption:

[cite author="Department for Energy Security and Net Zero" source="Boiler Upgrade Scheme Update, September 2025"]£7,500 grants for heat pumps through the Boiler Upgrade Scheme, with an extra £30 million added this financial year and the budget nearly doubled to £295 million for the next financial year[/cite]

The grant level represents approximately 50% of typical installation costs, addressing the primary barrier of upfront investment. Budget doubling signals sustained government commitment despite fiscal constraints.

Warm Homes Plan Targets 300,000 Properties

[cite author="UK Government" source="Autumn Budget Implementation, September 2025"]The Warm Homes Plan will see up to 300,000 homes benefit from upgrades in 2025. An initial £3.4bn was committed in the Autumn 2024 Budget for 2025-2028, with approximately £1bn allocated to 2025-2026[/cite]

This represents the largest UK residential energy efficiency investment to date, though still below the scale required for net zero alignment.

Additional targeted support addresses fuel poverty:

[cite author="DESNZ Funding Announcement" source="September 2025"]£500m for a new local authority retrofit scheme supporting up to 60,000 low-income homes, and £1.25 billion for the Social Housing Decarbonisation Fund to retrofit up to 140,000 social homes[/cite]

Social housing focus enables rapid deployment through registered providers' portfolio approach, avoiding individual household decision-making delays.

Installation Gap Reveals Systemic Challenges

[cite author="Heat Pump Association" source="Market Review, September 2025"]The previous government set a target of 600,000 heat pump installations per year but achieved just 72,000[/cite]

This 88% shortfall exposes structural barriers beyond financial incentives. The gap between ambition and delivery threatens 2050 net zero commitments.

Planning Reform Removes Barriers

[cite author="Ministry of Housing" source="Planning Regulation Update, Early 2025"]From early 2025, more households in England will be able to install air source heat pumps without planning permission by removing the rule requiring them to be installed at least one metre from a property's boundary[/cite]

This seemingly minor change eliminates barriers for millions of terraced and semi-detached properties where space constraints previously prevented installation.

Clean Heat Market Mechanism Drives Manufacturer Participation

[cite author="Ofgem" source="Market Mechanism Consultation, September 2025"]The Clean Heat Market Mechanism launch has been adjusted from April 2024 to April 2025, with target levels for 2025/2026 set at 6% of relevant boiler sales[/cite]

This mechanism requires boiler manufacturers to sell increasing proportions of heat pumps, creating supply-side pressure complementing demand incentives.

Future Homes Standard Sets New Baseline

[cite author="Building Regulations Update" source="DLUHC, September 2025"]The Future Homes Standard from 2025 will see low-carbon heating technologies like heat pumps installed as the norm in new properties[/cite]

Mandatory heat pump installation in new builds from 2025 ensures long-term market transformation, though doesn't address the existing 29 million home challenge.

Skills Gap Constrains Growth

[cite author="Construction Industry Training Board" source="Skills Analysis, September 2025"]Skills shortages appear to be a major factor in delivery problems, as it can take 4 years to train the specialists required[/cite]

The four-year training timeline means current capacity constraints will persist through 2029 even with immediate training program expansion.

Grid Infrastructure Requires Coordination

[cite author="National Grid ESO" source="Infrastructure Report, September 2025"]Retrofitting across neighbourhoods usually requires upgrades to the local electrical grid managed by Distribution Network Operators, which can introduce delays[/cite]

This infrastructure dependency adds complexity beyond individual property decisions, requiring coordinated area-based approaches.

Consumer Behavior Challenges

[cite author="Energy Systems Catapult" source="User Research, September 2025"]Issues often arise when residents try to use heat pumps like gas boilers[/cite]

Behavioral adaptation requirements highlight need for comprehensive consumer education alongside technology deployment.

Real-World Cost Savings Demonstrate Value

[cite author="Octopus Energy Customer" source="Case Study, September 2025"]Before installation, my energy bill was £297. Now, I'm paying £84.90![/cite]

This 71% bill reduction exemplifies potential savings when heat pumps are properly specified and operated, countering negative media narratives about running costs.