Government Recommits £13.2bn to Warm Homes Plan
Chancellor Rachel Reeves has reaffirmed the government’s £13.2 billion commitment over five years to deliver the flagship Warm Homes Plan, doubling previous funding levels and signalling strong support for energy efficiency and decarbonisation.
Announced during the recent Spending Review, the investment will be delivered between 2025/26 and 2029/30, aiming to tackle fuel poverty, reduce household energy bills, and accelerate progress towards net zero.
In the lead-up to the announcement, there had been mounting speculation that the Chancellor might scale back the plan, after the Treasury initially declined to guarantee Labour’s additional £6.6 billion pledge made during the general election. However, the latest confirmation appears to reaffirm the full funding commitment in line with Labour’s manifesto promise.
What is the Warm Homes Plan?
The Warm Homes Plan was first outlined in the Labour Party’s Change manifesto, committing an additional £6.6 billion on top of the previous Conservative government’s pledge. The plan aims to upgrade five million homes and reduce energy bills for homeowners by up to £600 annually, through investment in insulation, solar panels, battery storage, and low-carbon heating technologies. The Warm Homes Plan also included a commitment to improve energy performance standards in the private rented sector by 2030– something which is already under consultation.
The full Warm Homes Plan is scheduled for release in October, however, the Government Department for Energy Security and Net Zero has confirmed to Elmhurst what we can expect:
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Increased funding for the Boiler Upgrade Scheme through to 2029/30, supporting heat pump uptake.
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Expanded support for social housing providers via the Warm Homes: Social Housing Fund (formerly the Social Housing Decarbonisation Fund).
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Ongoing collaboration with local authorities through the Warm Homes: Local Grant to deliver upgrades for lower-income households until 2027/28.
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Significant investment in low-carbon heat networks as part of long-term decarbonisation.
Elmhurst’s Technical Development Director, Andy Parkin, is please to see government’s commitment to the Warm Homes Plan, reaffirmed:
“We welcome the government’s firm commitment to improving the energy efficiency of UK homes. Elements of the Warm Homes Plan are already underway, including a completed consultation on raising minimum energy efficiency standards in the private rented sector, and £1.29 billion in funding allocated through the Warm Homes: Social Housing Fund, alongside targeted support via the Warm Homes: Local Grant. The overall direction of travel is encouraging and signals real momentum in tackling fuel poverty and reducing the emissions coming from our homes.”