The Institute for Public Policy Research predicted homeowners could save an average of £430 a year on energy bills due to new insulation.
The scheme would cost £7 billion nationally and the IPPR has called for the "retrofit revolution" to begin immediately.
Luke Murphy, head of the Fair Transition Unit and associate director for the energy, climate, housing and infrastructure team at IPPR, said: "The new Prime Minister and chancellor have said they want to focus on growth.
"This report shows that a national retrofit programme can deliver jobs and growth right across the country, and deliver levelling up at the same time. It would also lower energy bills, reduce energy demand and our dependence on Putin, and lessen carbon emissions."
He added: "It’s hard to think of another intervention that could deliver on so many objectives at the same time. It’s time the government acted and invested to upgrade our nation’s homes making them warmer and more affordable. It’s a no-brainer."
Joshua Emden, IPPR senior research fellow, added: "The UK is in the middle of the worst energy bill crisis for at least 50 years. The price cap freeze shields us from absolute catastrophe but many households are already struggling with last April’s increases. It is vital that the government takes steps to make us less vulnerable in future."
The report lays out a 28-year plan to retrofit every household in England, which at its core would create 1.2 million direct jobs and 1.5 million indirect jobs and provide a cornerstone for the levelling-up agenda, as well as reducing households’ bills by an average of £430 a year.
There is currently significant regional variation in employment opportunities. A retrofitting programme, at the cost of £7bn a year, would benefit regions such as the West Midlands around twice as much as areas like London.
The issue of insulating homes hit the headlines earlier this year as protesters brought motorways and city centres to a standstill to demand the Government take action.