The Welsh Government has announced a £98.75 million investment to improve the energy efficiency of thousands of social homes across Wales this year, helping reduce energy bills, cut carbon emissions and support skilled green jobs.
The funding will support the next round of the Optimised Retrofit Programme, taking total Welsh Government investment in the scheme since 2020 to more than £466 million.
The Optimised Retrofit Programme funds a wide range of energy efficiency improvements in social housing, including:
- Insulation upgrades
- Energy‑efficient heating systems
- Renewable energy installations such as solar panels and heat pumps
To date, the programme has supported more than 31,000 energy efficiency upgrades to social homes across Wales, helping residents live in warmer, healthier and cheaper‑to‑run homes while contributing to Wales’ decarbonisation goals.
The funding announcement was made during a visit by Cabinet Secretary Jayne Bryant to Tŷ Gwyrddfai Decarbonisation Hub in North Wales, where she met apprentices training for careers in the housing decarbonisation sector.
The hub plays a key role in developing the skills and workforce needed to deliver large‑scale retrofit programmes, ensuring the transition to low‑carbon housing also supports local jobs and economic growth.
Jayne Bryant, Welsh Cabinet Secretary for Housing and Local Government, said:
“This Government is determined to ensure our social housing sector offers safe, comfortable, healthy and low carbon homes to its tenants.
“This latest investment will enable social landlords to continue making vital improvements to homes across Wales, cutting household bills whilst reducing greenhouse gas emissions. It was great to meet two of the residents and hear what a difference this work has made to their homes.
“The Optimised Retrofit Programme does more than improve housing quality and reduce our carbon footprint - it creates local job opportunities, strengthens low-carbon supply chains, and builds the skills we need for the green economy.
“Meeting the apprentices at Tŷ Gwyrddfai demonstrated the real career opportunities this sector offers communities across North Wales. My dad was a plasterer and tiler, so
I have great respect for these skills, which are in high demand. These are good jobs, close to home, making a real difference.”
The project has received £579,000 in Optimised Retrofit Programme funding, with local housing association Adra contributing a further £1.5 million, demonstrating the collaborative approach between government and social landlords.
The Welsh Government says continued investment through the Optimised Retrofit Programme is central to its efforts to cut carbon emissions from homes, tackle fuel poverty, and ensure the benefits of decarbonisation are felt by communities across Wales.
By upgrading social housing at scale, the programme helps protect residents from rising energy costs while improving comfort, health and long‑term sustainability.
The latest funding round reinforces the Welsh Government’s commitment to cleaner, greener homes and a just transition that supports both households and the workforce delivering change.
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