£90m fund aims to cut bills for 750,000 homes by expanding and fixing heat networks

# What happened The government announced a £90 million package to expand and fix heat networks across England and Wales. The funding is split between building new low-carbon systems, extending existing networks and upgrading inefficient infrastructure. Officials say the measures target lower household heating bills and create over 2,000 jobs across project sites.

# How heat networks work

# Major projects listed in the announcement

• London (River Thames project): Backed by £41 million, a project would transport hot water by electric barge along the Thames and funnel it through a new tunnel under the river. The scheme is described as initially supplying clean heat to 650,000 homes and potentially benefiting over one million people. It remains subject to planning consent and is presented as having the potential to unlock around £5 billion of further investment in local heat networks.

• Bexley and Greenwich: £11.5 million to develop a network that could eventually serve up to 100,000 homes.

• Marble Arch/Oxford Street area: £11.4 million for a network serving offices, homes, hotels and businesses, using water-source heat pumps.

• Bradford: £9.7 million to extend the city's existing heat network, covering 255 homes, a hospital and seven schools and colleges.

• Solihull: £3.9 million to extend a network serving council buildings, a leisure centre, theatre and college.

# Upgrades to inefficient systems The fund includes £13.3 million specifically to upgrade 76 inefficient heat networks across England and Wales. Work will include replacing leaky pipes, insulating pipework to reduce heat loss, and installing equipment so residents have better control over heating. Examples in the announcement:

• Manchester: £1 million to improve heating for 130 residents.
• London: £5.5 million to upgrade systems serving 1,143 residents.
• Newport and Abergavenny: £374,900 for improvements.

# Government comments and policy framing Martin McCluskey, Minister for Local Energy and Jobs, framed the funding as combining clean heat rollout with job creation and energy security. A policy manager at ADE: Heat Networks said funding signals that both building new networks and fixing legacy systems are required to cut bills and meet climate goals.

# What's next Some projects are subject to planning consent. The announcement pairs large-scale new builds with targeted upgrades, suggesting a two-track approach: deploy new low-carbon systems where feasible and improve existing networks where inefficiency drives higher bills.

# Practical takeaways