Overview

Warmer Homes Scotland is the Scottish Government’s national fuel poverty scheme. It aims to support households in or at risk of fuel poverty by making their homes more energy efficient and more affordable to heat, reducing energy bills. Warmworks has been the Managing Agent of the scheme since 2015.

Referrals to the scheme are made through Home Energy Scotland and once a household is confirmed as eligible, the referral is passed to Warmworks, who manage the full end-to-end process. This includes arranging a detailed in-home survey to determine suitable improvements, appointing a registered installer to carry out the work, and coordinating a post-installation inspection to confirm that everything has been completed safely, to the correct specifications, and to a high standard.

The scheme offers a range of energy efficiency improvements such as insulation, energy-efficient heating systems, and renewable technologies, most of which are free of cost to the customer. These improvements are designed to reduce energy consumption, lower energy bills, and improve household comfort and wellbeing. Since its launch in 2015, the scheme has supported nearly 50,000 households, delivering measurable improvements in energy affordability and contributing to Scotland’s national decarbonisation goals.

In October 2023, Warmworks was reappointed to deliver the second phase of the scheme. This new phase builds on the success of the original model by adopting a whole-house, fabric-first approach, with a greater focus on zero-emissions heating systems, including heat pumps and electric heating solutions. While continuing to tackle fuel poverty, this phase also supports a just and equitable transition to net zero – ensuring that the environmental benefits of decarbonisation are matched by social and economic inclusion.

Gap the project addresses

Scotland faces two interlinked challenges: high levels of fuel poverty and the urgent need to reduce domestic carbon emissions. Many low-income households live in poorly insulated homes and cannot afford to upgrade their heating systems, leading to high energy costs and poor health outcomes. Warmer Homes Scotland addresses this gap by offering practical, funded solutions that make homes warmer and more energy-efficient, directly reducing household emissions while lifting people out of fuel poverty.

Ownership model

Warmworks is a joint venture between Energy Saving Trust, Sureserve, and Changeworks. The scheme itself is publicly funded and owned by the Scottish Government, with Warmworks responsible for delivering it.

Policy and funding

The scheme is funded by the Scottish Government as part of its broader efforts to meet statutory climate targets and eradicate fuel poverty by 2045. It aligns with national strategies such as Scotland’s Energy Strategy, the Heat in Buildings Strategy, and the Just Transition Plan. Capital investment is channelled through the Government, while delivery is managed by Warmworks under strict regulatory and reporting standards.

 Impact to date

• Nearly 50,000 households supported since inception.
• More than 251,000 completed improvements (including heating, renewables, insulation, and ancillary measures).
• Average household energy bill savings per year of up to £466 per home.
• Total carbon savings of approximately 6,000 (TCO2).
• 99% customer satisfaction rate.

Contribution to just transition

Warmer Homes Scotland plays a vital role in delivering a just transition by directly addressing both the climate emergency and social inequality in tandem. The scheme strongly aligns with the Scottish Government’s National Just Transition Outcomes, ensuring that the path to net zero is fair, inclusive, and leaves no one behind.

At its core, the scheme delivers targeted support to households most at risk of fuel poverty, many of whom are unable to afford the upfront cost of energy efficiency improvements. By providing fully funded or subsidised improvements such as insulation, zero-emissions heating systems, and other energy-saving technologies, the scheme helps ensure that the benefits of climate action are shared equitably, while avoiding placing the financial burden on those least able to pay. This directly supports the Outcome on Fair Distribution of Costs and Benefits, reducing both carbon emissions and energy bills for the most vulnerable in society.

The scheme also contributes significantly to Community Wellbeing and Resilience. Warmer homes lead to improved physical and mental health, reduced stress related to high energy bills, better educational outcomes for children, and greater overall household stability. These benefits ripple across communities, strengthening local resilience and wellbeing, particularly in rural and remote areas that are often disproportionately affected by fuel poverty.

Warmworks has also developed a robust community benefits system and process to maximise social value and economic impact. This includes ongoing work with local partners, supply chain organisations, and community stakeholders to tailor delivery approaches that leave a real, lasting legacy in the areas we serve. We are actively working with key stakeholders including schools, colleges, universities, government agencies, industry bodies, and manufacturers to strengthen pathways into the energy efficiency and renewables sector, build skills pipelines, and support long- term local economic development. Our community benefits strategy is supported by transparent reporting, clear performance indicators, and shared accountability across our delivery partners.

Through its delivery model, Warmworks supports green jobs, skills, and inclusive economic growth, contributing to the Just Transition Outcomes related to Jobs, Skills and Education, Business and Economy.

Since 2015, the scheme has:

• Created or supported over 900 jobs.
• Enabled more than 175 apprenticeships.
• Delivered 7,000+ training and upskilling opportunities, including in renewable technologies, leadership, and customer service.
• Provided 250+ work placements and supported young people and career changers through initiatives like Warmstart.
• Employed 18 graduates, helping them transition into sustainable, long-term careers.

Warmworks delivers these outcomes through a Scotland-wide network of trusted supply chain partners, many of whom are SMEs. This model not only helps to decarbonise local economies, but also supports business resilience, regional regeneration, and inclusive economic development – all while upholding fair work practices, including the payment of the real Living Wage.

By focusing on both decarbonisation and social justice, Warmer Homes Scotland represents a practical and scalable example of a just transition in action. It equips individuals and communities with the tools to thrive in a net zero future, ensuring that no one is left behind in the process.

Contribution to regional and industrial heritage

Scotland has a deep-rooted industrial history, particularly in energy-intensive industries such as coal mining, shipbuilding, and heavy manufacturing. Many communities once reliant on these sectors now experience economic disadvantage, energy inefficiency, and poor housing conditions as a legacy of post-industrial decline.

Warmer Homes Scotland serves many of these former industrial regions, from the Central Belt to the Highlands, recognising the historical inequities and energy inefficiencies embedded in older housing stock. The scheme offers an opportunity to bring cutting-edge, low-carbon technologies into communities across Scotland, connecting the country’s future energy system with its industrial past. It offers a just and inclusive pathway forward, one that respects the historical context while creating new forms of resilience and opportunity.

 Benefits to the local area

Warmer Homes Scotland delivers a wide range of benefits at both the local and national level:

• Helps households across Scotland to become warmer, happier and healthier in their homes, all while reducing their energy bills.
• Helps to improve health and wellbeing through warmer, safer homes that reduce the risks of cold-related illness.
• Creates jobs and promotes skills development, especially in the retrofit and renewable energy sectors, supporting local economies.
• Reduces carbon emissions, contributing to Scotland’s net zero targets while ensuring no one is excluded from a just transition.
• Revitalises communities, particularly in rural, remote, and island areas, through investment in housing quality and energy systems.

Through these outcomes, the scheme delivers a model for how national climate ambition can be translated into local, tangible, and equitable impact.

Lessons learned

Warmer Homes Scotland has delivered several important learning points that illustrate that a just transition to net zero is possible.

• A whole-house, person-centred approach works best: taking a holistic view of a home’s energy performance and addressing insulation, heating systems, and ventilation together maximises comfort, energy savings, and long-term efficiency.
• Trust and accessibility drive engagement: delivering a Government-backed scheme through Warmworks, a trusted Managing Agent, has encouraged uptake, especially among vulnerable households. Simple processes, accessible information, and dedicated support have made a significant difference.
• Quality assurance builds public confidence: independent inspections of every installation have maintained high standards and resulted in a customer satisfaction rate of 99%, reinforcing the scheme’s credibility and encouraging broader participation.
• Job creation and skills development are crucial: since 2015, the project has helped 175 people into modern apprenticeships, created around 900 jobs, supported 250 work placements, and generated more than 7,000 training or upskilling certificates. These outcomes underscore the scheme’s role in building a skilled, green workforce and embedding long-term economic benefits across Scottish communities.
• Long-term contracts support supply chain sustainability: the stable, long-term nature of the scheme’s delivery contracts have enabled supply chain partners to invest in workforce development, infrastructure, and quality improvements. This sustainability has directly enhanced the wider social impact of the scheme by providing local employment, economic resilience, and continuity of service.

Constraints and challenges

Despite its proven success, Warmer Homes Scotland continues to face a number of operational and systemic challenges:

• The ongoing funding of the scheme should match not only the current demand for the scheme, but also the Scottish Government’s ambitious climate change targets.
• The ability to meet growing demand for retrofit work and zero-emissions heating installations is limited by a shortage of trained installers, surveyors, and support staff. This is particularly acute in rural, remote, and island communities, where travel times and costs are higher and where retaining skilled workers can be more difficult.
• Technologies such as heat pumps, solar panels, and advanced insulation improvements are still unfamiliar to many households. Misinformation or lack of knowledge about system performance and operating costs can create hesitation or resistance. Continued investment in community engagement and energy advice services is critical.
• While the scheme has had significant success in creating over 175 apprenticeships and generating more than 7,000 upskilling certificates, recent increases in the national minimum wage for apprentices have had an impact on uptake across the supply chain. Some employers are now more cautious about recruiting apprentices due to the added financial commitment. This is particularly concerning in a growth sector that urgently needs skilled workers to support the transition to a low-carbon economy.
• More targeted support is required to encourage apprenticeship intake. There is a growing need to explore more flexible and responsive training pathways. New models that reduce the duration of training while maintaining quality, such as the Low-Carbon Heating Technician Apprenticeship or fast-track apprenticeships, could help reduce the time an apprentice is employed before becoming fully productive, easing the burden on employers and accelerating workforce development.

Replication and scaling

Yes, Warmer Homes Scotland is both replicable and scalable, and its structure provides a proven framework for delivering energy efficiency improvements at scale while supporting social and economic goals.

What makes the project scalable is its integrated model: central coordination, strong local delivery networks, embedded quality assurance, and investment in training and jobs. With over 900 jobs created, 175 apprenticeships supported, and more than 7,000 upskilling certificates awarded, the scheme demonstrates a practical pathway for a just and inclusive transition.

However, key barriers to wider replication include:

• Skilled labour shortages, which require a coordinated national effort in training and education.
• Policy consistency and long-term commitment, to give confidence to supply chains and communities.

Working conditions and fair work practices

Featured organisations and initiatives were asked to supply the following information regarding working conditions:

• Alignment with Scottish Government Fair Work First criteria
• If they have gone beyond Fair Work First by incorporating broader values on fair work
• For larger organisations, whether a union recognition agreement is in place.

This did not apply to co-operatives structures and membership-based initiatives, though all projects and initiatives were given room to provide any detail on fair work practices deemed relevant.

The following information was provided:

Warmworks is fully committed to embedding the principles of Fair Work First in both our own operations and throughout our supply chain. As the Managing Agent of Warmer Homes Scotland, we understand that a just transition must include fair, secure, and meaningful employment for everyone involved in delivering low-carbon improvements to homes across Scotland. Our approach is underpinned by our core values – Professionalism, Enthusiasm, Innovation, Care, and Teamwork – which shape how we work, how we lead, and what we expect of our partners. This commitment to our people and workplace culture has been formally recognised through our achievement of the Investors in People Platinum standard, demonstrating our dedication to continuous improvement, leadership, and the wellbeing and development of our workforce.

Our workplace practices aligned with Fair Work First include:

• Payment of the Real Living Wage: all Warmworks employees are paid at least the Real Living Wage, as set by the Living Wage Foundation. We are proud to be a Living Wage Employer and actively promote this standard across our supply chain, reflecting our value of Care by ensuring fair reward for all.
• Effective worker voice: employees are encouraged to contribute to organisational development through regular workshops, employee surveys, and open dialogue with leadership. We maintain transparent communication and actively listen to our workforce, in line with our commitment to Teamwork and Professionalism. While we do not recognise a specific union, all employees are free to join any union they wish.
• Workforce development: we promote equal access to learning, development, and progression. Since 2015, we’ve supported 175 people into modern apprenticeships, facilitated over 250 work placements, and delivered more than 7,000 training or upskilling certificates. This reflects our Enthusiasm and Innovation in developing Scotland’s green skills base and ensuring people from all backgrounds can succeed in a low-carbon economy.
• Tackling workplace inequalities: Warmworks provides secure employment through permanent contracts, contracted hours, and comprehensive employee benefits. We do not support inappropriate zero-hours contracts and work with supply chain partners who share our commitment to quality, stable work, guided by our value of Professionalism.
• Respect: we foster an inclusive and respectful working culture, rooted in strong equality, diversity, and anti-discrimination policies. Employee wellbeing is central to our operations, supported through access to mental health resources, flexible working options, and a robust health and safety framework, demonstrating our Care for the people who deliver our mission.
• Fulfilment: we believe our employees should find meaning in their work. Warmworks’ role in tackling climate change and fuel poverty ensures that our people are part of something meaningful. We provide ongoing opportunities for training, leadership development, and career growth to help our employees thrive, motivated by our values of Innovation and Teamwork.

As we continue to grow and evolve, Warmworks remains committed to working collaboratively with Government, supply chain partners, and the wider industry to champion Fair Work First as a foundation of a more equitable, values-led, and sustainable transition to net zero.