Policy paper

Green Home Finance Strategic Partnership: terms of reference

Published 3 February 2026

Background  

The government announced the establishment of a Green Home Finance Strategic Partnership in the Warm Homes Plan published in January 2026.

Purpose 

In furtherance of the objectives in the Warm Homes Plan, the Green Home Finance Strategic Partnership (the Partnership) has been established through  a partnership between the Minister for Energy Consumers (the Minister) at the Department for Energy Security & Net Zero (DESNZ) and the Green Finance Institute (GFI) to enable government and the retail lending sector, alongside other key stakeholders, to agree a common set of goals and activities aiming to deliver longer-term market-wide change in the UK green home finance market. The Partnership will work to investigate and prioritise further innovative financing models, tackle scaling challenges, and increase public awareness of the financial tools that can support them to upgrade their homes. This will include recommended actions for industry, and recommendations for government to consider as part of its wider Warm Homes Plan delivery work.  

The work of the Partnership will, ultimately, aim to support a reduction in domestic sector energy demand and enable significant savings on consumer energy bills whilst accelerating carbon-reduction through the delivery of low-carbon heating, energy efficiency, and other related measures across the domestic non fuel-poor households. 

Objectives 

The Partnership will advise and work with Ministers on delivery of the green home financing elements of the Warm Homes Plan, with a particular focus on the role of the private sector and the stimulation of investment. Its areas of focus will be on the practical levers and interventions needed to scale the UK’s Green Home Finance Landscape into a mass market by 2030 to underpin delivery of a universal Warm Homes Plan. This will be achieved through dedicated working and task-and-finish groups, that will focus on: 

• increasing the accessibility and reducing the cost of finance for home upgrades
• exploring options to better promote green lending
• driving consumer demand and consumer journeys
• supporting clear and trusted standards and processes

The initial meeting of the Partnership steering group (the Steering Group) will review these objectives and agree key priority areas of focus which will form detailed Working Group workplans. 

Leadership and Accountability 

The DESNZ Minister for Energy Consumers and the Chief Executive of GFI, Dr. Rhian-Mari Thomas OBE, are appointed as Co-Chairs with shared overall responsibility for the Partnership and its outputs.  

The Partnership will work collaboratively to ensure cross-government support and necessary alignment with policy, whilst GFI also pursuing external engagement and driving progress across Working Groups (the Working Groups) and wider stakeholder groups. DESNZ and GFI will each take the lead on aspects which they are better placed to progress.  

Membership 

The Partnership Co-Chairs will be supported by a Steering Group which will consist of member organisations consisting of senior stakeholders from a range of public and private sectors with appropriate expertise which may include green home finance, energy efficiency, clean heat and consumer rights. 

The Steering Group will be supported by a series of expert Working Groups which will include working level member organisations, which may include members from retail finance, energy efficiency and clean heat, alongside wider delivery bodies, business, academia, non-profits, Local Authorities, and the Housing Sector and other relevant sectors. The Working Groups will be tasked with exploring specific issues related to the Partnership’s overall objectives, including developing options and drafting recommendations for the Steering Group and government to consider. 

DESNZ and GFI officials will attend Steering Group level meetings to facilitate discussions and provide secretariat functions. Working Group secretariat functions shall be provided by other member organisations within each Working Group with support from the Steering Group secretariat where appropriate. Delivery and policy experts from DESNZ and other departments will provide support and input as required. Expertise from Partnership members or from outside the Partnership may be used, including other stakeholders.  

Approach  

The Co-Chairs and Steering Group members will use their experience and contacts as leverage to bring wider stakeholders together in this aim to accelerate and increase the impact of existing delivery approaches on green home finance for energy efficiency, clean heat and other low-carbon technologies, and develop fresh initiatives, and recommend solutions to barriers.  

The first meeting of the Strategic Partnership Steering Group will take place in January 2026. This meeting will ratify the Terms of Reference and discuss and agree initial priorities for the Partnership and Working Groups it will establish. The Steering Group will also agree and sign-off on the appointment of Working Group chairs and agree which Steering Group members will champion the work of which Working Groups. 

In future meetings, individual workstreams will be championed by individuals from the Steering Group as required on the agreed priority areas. Members will report back progress, initial and final findings and recommendations to the Partnership with input and collaboration from wider delivery and policy teams. Working Group and/or policy teams may be invited to meetings of the Partnership as required. 

DESNZ and GFI will on a quarterly basis assess the progress and impact of the Partnership, including whether its objectives have been met or if further work is required, and determine its future direction. 

Governance 

The Partnership will be sponsored by DESNZ and GFI. The Co-Chairs are jointly responsible for the delivery of the Partnership outputs. The responsibilities and accountability of Ministers and the Accounting Officer to Parliament are unchanged. 

The Co-Chairs will be supported by a secretariat, based in DESNZ, but co-delivered with GFI. The secretariat will be responsible for administrative functions including arranging meetings, circulating papers and recording minutes of meetings.  

The secretariat will be overseen by a Senior Civil Servant (Deputy Director) and GFI Programme Director with responsibility for ensuring that the meetings are effectively run, making efficient use of policy and delivery team resource, and external expertise as required. 

Agendas and papers will be circulated in advance of meetings. Minutes will be circulated and agreed following meetings. The secretariat will also be responsible for maintaining and tracking progress of the agreed workplan. 

Ways of working 

When discussing and agreeing solutions, DESNZ (both in connection with the Steering Group and separate Working Groups) will work within the parameters of existing government funding envelopes and policy, including the need to meet its statutory Net Zero targets, as well as the Public Sector Equality Duty and the Environmental Principles Policy Statement. 

Where the Partnership identifies issues within any current regulatory frameworks, it should raise these with DESNZ Ministers and Senior Officials to decide, providing evidence which informs changes, and why these support progress towards the overarching group and WHP targets. 

DESNZ and GFI will monitor the effectiveness of the Partnership in meeting its intended objectives and will review with the Co-Chairs on a quarterly basis whether there is a need to make changes to the structure, frequency and purpose of the meetings. 

Government officials will support with coordination, policy formation and analysis, working with Partnership members and their organisations. This will include facilitating the requisite join-ups with the Warm Homes Plan delivery team, and any cross-Whitehall engagement which may be necessary. The group will operate at all times in line with Competition law obligations.