Victory for Warm Homes Plan campaign as £13.2bn investment confirmed

The End Fuel Poverty Coalition has welcomed the Government’s decision to honour its full £13.2 billion manifesto commitment to fund the Warm Homes Plan.

The announcement in the Comprehensive Spending Review comes after sustained pressure from health experts, anti-poverty campaigners and public polling that showed strong voter support for keeping the pledge.

The funding will go towards improving energy efficiency in five million homes through grants and low-interest loans for insulation, solar panels, battery storage, and clean heating systems.

An End Fuel Poverty Coalition spokesperson said:

“Today’s £13.2bn warm homes boost to insulation and energy efficiency funding is a huge step forward for households suffering in cold damp homes.

“It also comes on top of recent announcements that every new home will benefit from inbuilt renewable energy generation via the Future Homes Standard and millions of pensioners will have their Winter Fuel Payments restored.

“But this is not the end of the crisis as energy bills are still too high – hundreds of pounds a year more than in 2020.

“The Government must now act to support all homes in fuel poverty through a ‘social tariff’ and to bring down the cost of electricity in a fair way for everybody.

“That means implementing a proper plan for electricity pricing reform, including scrapping marginal pricing so that the expensive cost of gas no longer sets the electricity price for the whole market.

“We also need real reform of Standing Charges – a measure backed by all main parties ahead of the last election – so that vulnerable high energy users such as older and disabled people are not unfairly penalised by the system.”

The Coalition also welcomed the replacement of the Household Support Fund with a new multi-year Crisis and Resilience Fund for local authorities to draw on.

However, campaigners warned that deeper systemic reforms are still needed to fully end fuel poverty — especially for disabled people and carers, who continue to face the threat of looming cuts to social security that could plunge hundreds of thousands into hardship.

Jonathan Bean of Fuel Poverty Action said:

“The Warm Homes Plan sounds good but without affordable energy prices millions will still suffer in under-heated homes. The extra energy needs of disabled people are being ignored, whilst their incomes are being slashed.”

The funding breakdown of the Warm Homes Plan is expected to include support for social housing decarbonisation, home upgrade loans, insulation grants, and local authority-led retrofit schemes. Crucially, the Coalition has stressed that the £13.2bn must be additional to existing schemes like the Energy Company Obligation (ECO) and Great British Insulation Scheme (GBIS), which should continue to run in parallel.

National Energy Action Chief Executive Adam Scorer said:

“The cost and suffering of cold homes and unaffordable energy bills will only be beaten in the long-term through investment in home energy efficiency. It’s welcome that the Warm Homes Plan will be receiving the full Labour manifesto funding commitment.

“£13.2 billion can support a Plan focused on those in the least efficient homes and on the lowest incomes. This can result in life-changing outcomes for the most vulnerable households, helping us drive economic growth, reduce pressure on health services and meet legal targets, in turn setting us on a path towards a fair and affordable transition to net zero.

“We now have the financial commitment; now comes the time to deliver for the most vulnerable households.”

Ministers face voter backlash if Warm Homes Plan is cut

Trust in Labour will be further threatened if the Chancellor scales back funding for home insulation and lowering energy bills, according to new polling released today, in echoes of the row over Winter Fuel Payments.

Recent media reports suggest that the Chancellor is considering reducing the funding available to insulate homes. [1]

The research by Opinium reveals that nearly half (46%) of Labour voters say that any backtracking from Labour’s manifesto commitment to invest in insulating the country’s poor housing stock would further reduce trust in Sir Keir Starmer’s government. [2]

Among those who voted for Labour in the last general election but aren’t currently planning on voting for them again, well over half (56%) say it would reduce their trust in Labour – damaging the party’s attempts to woo voters back from Reform, the Lib Dems, Greens and others. [3]

Almost half (48%) of Labour voters said the warm homes election promise was a factor in their decision to vote for the Labour Party. 

Labour promised to invest £13.2bn in a Warm Homes Plan to help improve the country’s leaky housing, which is making people ill and driving up NHS demand. A recent Medact survey found that three-quarters of front-line clinicians regularly see patients made ill by poor housing conditions, and almost half have discharged patients into homes they knew would make them sick again.   

In the run-up to the General Election, over half of prospective Labour voters (59%) said they supported a funded nationwide insulation programme to slash deaths caused by cold, damp houses. Meanwhile other researchers found that 59% of voters opposed stripping all pensioners of Winter Fuel Payments. [4]

In the new research, pollsters found that nearly all voters (87%) believe it is important for political parties to stand by their manifesto commitments. 

Ed Matthew, UK Director for the climate change thinktank E3G said: 

“Cutting a programme that will make immediate and direct improvements to people’s lives would backfire. 

“The public is sick of wasting money trying to heat cold, leaky houses and want this government to honour its manifesto pledge. If they fail to do so it would demonstrate that Labour have not learned from the Winter Fuel debacle at all.”

A spokesperson for the End Fuel Poverty Coalition, said:
“This polling clearly shows that it is now a case of heat or defeat for the Government. 

“The Labour Manifesto said the promised funding will offer grants and low interest loans to support investment in insulation and other improvements such as solar panels, batteries and low carbon heating to cut bills.

“Either they back a Warm Homes Plan to the full extent promised in the manifesto, or they will be punished at the ballot box. 

“The Chancellor must not be able to engineer another ‘Winter Fuel Payment’ disaster by refusing to help tackle fuel poverty and MPs should make that clear.”

The polling comes on the day that health workers will deliver an open letter to Secretary of State for Health and Social Care Wes Streeting MP, endorsed by several royal colleges. The letter urges the Government to honour its election promise to reduce energy bills and allocate at least £13.2 billion to a nationwide insulation programme in the upcoming Comprehensive Spending Review. 

Maria Carvalho, spokesperson for Medact, commented:

“It’s simple. All we want is what was promised in the election campaign. That means a fully funded Warm Homes Plan, investment in green jobs, skills, and training, stronger protections for renters after upgrades are completed and delivery of high-quality home retrofits.”

In recent days groups of businesses and over 50 senior figures from charities have written to the Treasury to express concerns that the Warm Homes Policy policy is facing severe cuts.

Deputy Director of Uplift, Robert Palmer, added: “The nearly nine million people up and down the country living in cold damp homes, desperately need the Government to commit to the Warm Homes Plan.

“It is so important to them that this research reveals 46% Labour voters will lose further trust in the party if it backtracks on this key pledge.

“There is now deep concern following reports that the Treasury is looking to trim the amount the government has pledged to spend on insulating homes

“We have some of the leakiest housing stock in Europe and the priority should be making those fit to live in through the promised £13.2 billion Warm Homes Plan announced in the 2024 manifesto.

“We’re calling on the Government to commit to this funding now, which is also crucial to their election promise to bring down energy bills. If they don’t it could be a broken promise too far for many of those who put their faith in voting for Labour last July.”

ENDS

[1] Sources: The Times (27.05.25), the FT (05.05.25), Politico MEC Bulletin (29.04.25)

[2] Opinium conducted a politically and nationally representative online poll of 2,050 UK adults from 14th – 16th May 2025.

[3] Of the Labour voters polled, the research suggests 54% would still vote for the party, but 12% would vote Reform, 7% would vote Lib Dem, 6% Lib Dem, 3% Conservative with the others choosing another party or now being unsure of their vote.

[4] “Over half of prospective Labour voters…” Opinium conducted a politically and nationally representative online poll of 2,185 UK adults from 29th – 31st May 2024.

Two thirds of people (67%) were also aware of the move to remove winter fuel allowance payments from pensioners, apart from those who receive means-tested benefits, and 59% opposed it, with only 28% in favour. YouGov / ECIU.

Bleak budget blasted by fuel poverty campaigners

Campaigners have reacted to the Government’s “bleak” budget which failed to help people facing fuel poverty this winter.

A spokesperson for the End Fuel Poverty Coalition commented:

This is a budget that has plenty for champagne swilling, jet-set bankers. But there is nothing for people facing the choice between heating and eating this winter.

The Chancellor’s cold words for people in fuel poverty will be heard in millions of households across the country.

Coming on the back of the pitiful Winter Support Fund, revelations that funding is not helping those most in need and missing billions from the promised support for energy efficiency improvements, this is a bleak budget from the Government.

Adam Scorer, Chief Executive of Coalition members, National Energy Action, tweeted:

Campaigners at Scope, tweeted:

Ruth London from Fuel Poverty Action added:

Zero on fuel poverty, and zero for the climate – two sides of the same filthy coin.

This budget was a chance to finally fund repair and insulation of the  UK’s cold damp housing.

Instead of domestic warmth and health, we got more, polluting and domestic flights.

The Centre for Sustainable Energy’s response to the Heat and Buildings Strategy is also now available online.

A petition for the public to sign is now available on Action Storm: https://actionstorm.org/petitions/fuel-poverty-crisis

Coalition reveals five priorities for the Comprehensive Spending Review

The End Fuel Poverty Coalition has called on the government’s Comprehensive Spending Review to solve a problem that has plagued the country for generations.

The submission sets out how fuel poverty could be all but eradicated within the lifetime of this Parliament.

Evidence from Public Health England shows that fuel poverty puts households more at risk from the worst effects of Covid-19.

Therefore, ending fuel poverty is now an urgent public health priority, which can only be solved through economic measures.

The benefits of ending fuel poverty include a faster transition to a just net zero, the levelling up of the economy and a green stimulus to aid the recovery from lockdown.

On the other hand, with energy use rising as people stay at home more and the predicted income squeeze, it is estimated that the numbers in fuel poverty could soar by 200,000. The recent National Energy Action / Energy Action Scotland monitor revealed a significant hardship for fuel poor households in the coming winter, as a potent combination of higher energy use resulting from staying at home for longer is mixed with reductions in income.

One in three British households are already concerned about the health impacts of living in a cold home this winter. And should a second wave of Covid-19 hit during cold weather, the impact could be catastrophic for individuals and our health services.

As a result, the Coalition urges the Government to commit to five main spending priorities:

1) Rapid roll-out of large-scale energy efficiency programmes

2) Urgent delivery of government promises on tackling fuel poverty

3) This unprecedented level of investment needs to be coupled with large scale training programmes

4) Immediate steps to improve energy standards in the private rented sector

5) Fuel Poverty Debt Relief to ensure fewer people will have to choose between heating and eating this winter

The full submission can be read online: https://www.endfuelpoverty.org.uk/wp-content/uploads/End-Fuel-Poverty-Coalition-CSR-Submission-FINAL.pdf