Warm Homes Plan Archives - End Fuel Poverty Coalition

Cuts of 40% to energy efficiency measures considered by Chancellor

Reports in the media suggest that the Chancellor is set to raid the funding for its flagship Warm Homes Plan to pay for energy bill reductions.

The breakdown of the £13.2bn Warm Homes Plan funding was due to be announced last month and was expected to include additional support for social housing, heat pumps, home upgrade loans and local authority-led retrofit schemes.

At the Comprehensive Spending Review, the End Fuel Poverty Coalition stressed that this £13.2bn must be addition to the c.£8.5bn (over 5 years) budget for existing schemes like the Energy Company Obligation (ECO). The Coalition wrote to Ministers [pdf] setting out reforms needed to this scheme following a critical National Audit Office report and has in the past called for this to be funded via general taxation.

However, the proposals briefed to the Guardian would effectively substitute parts of the Warm Homes Plan for existing schemes. This would essentially reduce the total £21.7bn energy efficiency pot by 40% over 5 years, harming the very efforts that would help to bring down bills in the long term and help end the suffering of people living in cold damp homes.

A spokesperson for the End Fuel Poverty Coalition, commented

“Any cuts to the Warm Homes Plan or other programmes to improve housing conditions would be a short-sighted act of betrayal by the Chancellor.

“These electorally popular policies can help bring down energy usage in a safe way and improve the energy efficiency of the homes of people in fuel poverty.

“We obviously understand the urgent need to cut energy bills, but the Chancellor – who previously brought us the Winter Fuel Payment fiasco – appears to be listening to the wrong people.

“It is entirely possible for the Government to help reduce energy bills, but Ministers need to look in the right place for changes.

“Given that between a quarter and a third of the average energy bill is profit for different parts of the energy industry, the Chancellor should look at how the Windfall Tax could be improved, rather than giving tax breaks to energy firms as she is being lobbied to do.

“Other ways to bring down bills include addressing electricity pricing and inefficiencies in the market, using public investment to help fund grid upgrades and real reform of standing charges. We would be happy to talk to the Chancellor about our recommendations.”

The industry trade body, Energy UK, has also set out economic reasons why this move could harm efforts to improve cold damp homes.

MPs back major reforms to energy bill support

MPs on the Energy Security and Net Zero Committee have backed a series of reforms to make the energy system fairer and support households facing a fifth winter of high bills.

In a major report on tackling the energy cost crisis, MPs recommended a permanent energy debt relief scheme funded through energy sector excess profits, automatic support for vulnerable households, a social tariff for energy and reforms to the Warm Home Discount.

The Committee also called for urgent action to fix unfair standing charges, improve data sharing to target support and overhaul Cold Weather Payments to ensure help reaches those who need it when temperatures drop.

Crucially, the Committee echoed the Coalition’s warnings about the growing energy debt crisis and proposed a structured, long-term solution to write off unpayable arrears without passing costs onto billpayers.

It also urged the Government and Ofgem to act quickly to rebuild trust in the energy market, strengthen consumer protections and ensure households are not penalised for reducing gas use as the energy system transitions.

A spokesperson for the End Fuel Poverty Coalition, commented:

“This report should be used to mark a turning point in the fight to end the energy cost crisis. The cross-party group of MPs have recognised what millions of households already know – our energy system has been stacked against people struggling to heat their homes and urgent change is needed.

“We are particularly pleased that MPs have backed the principle of energy debt relief funded through excess profits in the sector, alongside a social tariff, reforms to standing charges and improvements to the Warm Home Discount and Cold Weather Payments. These are landmark recommendations that could protect the most vulnerable.

“As this report makes clear, warm homes must be treated as a public health priority, with fair pricing, modernised winter protections, social tariffs and stronger rights for renters.

“If the Government is serious about implementing change, the Warm Homes Plan announced next month must be the first step. That means a £13.2 billion plan to create warmer and safer homes for those most in need, independent quality checks, skilled green jobs, trusted local advice services and prioritisation of the lowest-income households in the coldest homes.”

In responses to Government consultations, charities and fuel poverty experts have set out the key tests the Government’s forthcoming Warm Homes Plan and Fuel Poverty Strategy must meet. These include:

Treating warm, safe housing as a public health priority and retain the target to end fuel poverty by 2030
Adopting a 10% fuel poverty measure (after housing costs)
Committing to a 10-year national retrofit programme, agreed across parties, backed by skilled jobs, apprenticeships and national standards
Prioritising the Worst First — low-income households in the coldest, least efficient homes
Guaranteeing independent retrofit assessment, performance monitoring and consumer protections
Providing free, trusted local advice services and one-stop-shops for households
Funding delivery through public spending, not new levies on bills
Introducing targeted financial support including modernised cold weather payments and social tariffs
Empowering local authorities with data access and funding to lead street-by-street schemes
Protecting tenants from “retrovictions” and unfair rent rises

The spokesperson added:
“Warm homes are a basic right. This must be the moment the Government finally commits to a long-term plan to end fuel poverty — not just improve averages or fund short-term schemes.

“We need a decade-long Warm Homes Plan that delivers real-world warmth, safety and affordable bills, backed by independent quality checks, trusted advice and proper protection for tenants and consumers.

“After years of delays and stop-start programmes, it’s time to get on with delivery and ensure support reaches those in deepest need first.”

ENDS

The full report can be read here: https://publications.parliament.uk/pa/cm5901/cmselect/cmesnz/736/report.html

The End Fuel Poverty Coalition’s evidence to the inquiry can be read online.

Lessons must be learned from the NAO’s damning insulation report

The National Audit Office has found that poor oversight of the Energy Company Obligation (ECO) allowed sub-standard contractors to install faulty insulation in thousands of homes.

98% of homes that had external wall insulation installed under the schemes run by the previous government have problems and 29% of homes that were given internal insulation also need it fixing.

This amounts to around tens of thousands of installations that may have been defective, leaving households in cold, damp conditions.

Anyone affected by the scandal should contact the Ofgem ECO helpline on 0808 169 4447 or ECOhelp@ofgem.gov.uk.

A spokesperson for the End Fuel Poverty Coalition commented:

“The report reveals a system that has let cowboys through the front door, leaving thousands of victims living in misery and undermining public trust in efforts to tackle the cold damp homes crisis facing many households.

“Insulation and ventilation, when done properly, are among the safest and most effective ways to bring down energy bills and keep people warm. But sub-standard delivery and weak oversight by the last Government has turned what should have been a national success story into a cautionary tale.

“Now we need to fix the system, not abandon it.

“The government’s Warm Homes Plan must guarantee quality, with properly trained installers, independent inspections and rapid remediation if things go wrong.

“Only by getting insulation right, alongside a clear plan to move homes off volatile gas prices and targeted financial help for those struggling with their bills, can we end the scourge of cold, damp homes once and for all.”

James Dyson, Senior Researcher at E3G added:

“Every person who has been failed by this scheme deserved better; a warmer home which is cheaper to heat, delivered by competent tradespeople.

“Instead, the Conservatives’ time in office has delivered the British public yet another systemic failure in our public services. Everyone washed their hands of responsibility, from the government watchdog to energy companies and cowboy builders.

“The new government has a chance to put things right, it must move urgently to help the people affected to repair their homes at no extra cost and put in place high insulation standards to ensure this never happens again.”

Meanwhile Fuel Poverty Action’s Jonathan Bean said:

“This scandal exposes shocking levels of negligence by Government, Ofgem, Trustmark and energy firms. They have allowed rogue contractors… to exploit the £4 billion added to our energy bills [to pay for the scheme], and damage the homes of tens of thousands of mostly vulnerable people.

“Instead of the warm homes and lower bills Government promised, people had their homes and lives destroyed.

“Now [we see] a weak Government response, allowing the scheme to continue, only checking some homes and measures, and fixing even fewer.

“Decisive action is needed instead. All homes must be checked, and all damage and faults fixed. Not just insulation, also roofs that have been damaged by solar panels and heat pumps that don’t work properly. ECO4 should be halted and replaced by a scheme with proper quality control and protections for residents. Victims must not be left suffering through another winter in cold, damp, damaged homes whilst cowboy contractors enjoy their huge profits.”

Anyone with poorly installed ECO4 work in their home can also contact Fuel Poverty Action via its website to take action.

Chief executive of charity Severn Wye, Sandy Ruthven MBE, commented:
“The figures are eye-watering but by themselves don’t tell the full story of fuel poverty and the experience of day-to-day living in a cold, damp and unhealthy home.

“External wall insulation is fitted to homes that have solid walls. Done well, it keeps heat in and cold out, but done badly it creates ideal conditions for damp and mould to grow inside. This is an unsightly nuisance at best but can be an immediate threat to health and in extreme cases can kill.

“The report’s findings that almost all external wall insulation and nearly one third of internal wall insulation need repair is hard to comprehend. But we know from the calls we receive into our advice line and home visits, that coping with shoddy installations has a devastating impact on health and wellbeing.”

Labour Party conference ends with focus on energy bills

The Energy Secretary has announced initiatives to try and bring down energy bills, boost green jobs and ban fracking at the Labour Party Conference in Liverpool.

On the day that the average energy bill rose by 2.21% year-on-year rise (now 68% or £713 a year higher than in the winter of 2020-21), Government ministers have pointed to the work to deliver more renewables and “in the coming weeks” an announcement on the biggest home upgrade programme in British history.

A spokesperson for the End Fuel Poverty Coalition, commented:
“The Government is right to fight for homegrown, clean energy. The North Sea is running dry – even with new fields, the UK won’t produce enough gas to heat our homes by 2027. What’s more, fracking is unsafe, unpopular and unable to meaningfully reduce energy bills.

“So ramping up clean power is the only way to bring our bills down in the long term while providing a secure energy future.

“But as we approach a fifth winter of the energy bills crisis, households are struggling to cope with bills which remain hundreds of pounds a year above where they were in winter 2020/21 and energy debt is now at record levels. Meanwhile, new analysis from the Common Wealth think tank suggests that around 24% of every household energy bill is taken as profit by the energy industry.

“This is why we need action to provide more support to those who need it the most alongside improved energy efficiency and lower bills for households now.”

Two million households won’t turn on their heating this winter

More than two million households say they won’t turn on their heating this winter, an increase on last year, reveals new Uswitch research.

Speaking to the BBC’s Good Morning Scotland, a spokesperson for the End Fuel Poverty Coalition, said:

“Not turning on your heating is an example of what we call dangerous behaviours. Being unable to heat your home properly is unsafe – it risks your health and leads to damp and mould, which make conditions even worse. Around 200,000 households in Scotland face this extreme form of fuel poverty, but the problem is far wider, with almost half a million Scottish households spending over 20% of their income on energy.”

Across the UK as a whole, over 12 million households spend more than 10% of their income on energy (43%) and around 5 million spend more than 20% on energy bills.

The spokesperson urged households to be alert to scams and to contact their energy supplier to check if they need to apply for the Warm Home Discount (see this Money Saving Expert advice) and other vital support with the cost of energy.

“While support such as the Warm Home Discount and winter heating or winter fuel payments can provide short-term relief, we cannot keep papering over the cracks each year. We need urgent investment in insulation and home upgrades, alongside reform of how energy is priced, so people can live in warm, safe homes without relying on volatile gas imports.”

Renters forced to ration gas and electricity

New research from Citizens Advice finds more than two in five private renters (41%, equivalent to 4.5 million people) in England and Wales had to ration gas and electricity to afford their energy bills last winter.

Meanwhile a third (32%, equivalent to 3.5 million) struggled to heat their home to a comfortable temperature. The charity says this forced people to take drastic measures like skip hot meals, wear gloves inside, and limit heating to just one room.

A spokesperson for the End Fuel Poverty Coalition commented:

“Millions of renters are being forced to ration energy, live in cold, damp homes, or even skip hot meals simply because landlords are not required to upgrade properties to a decent standard. At the same time, household energy debt has tripled in the last decade, with people falling behind on bills they can no longer afford.

“The government cannot continue to delay action.

“It must urgently deliver on its promises to raise minimum standards in the rented sector and provide greater protections for private renters through the Renters Reform Bill.

“Alongside that, we need targeted financial help for households with their energy costs, a national programme of area-based insulation upgrades and reforms to electricity pricing to bring down bills.

“Without these reforms tenants will remain trapped in cold, damp homes with devastating consequences for health, wellbeing and household finances.”

Home upgrade scheme take up rates show mixed picture

The Press Association Radar team have produced a series of articles examining the latest figures for the Home Upgrade Grant (HUG) and Local Authority Delivery scheme (LAD). These are government schemes supporting energy efficiency upgrades of low-energy efficiency (EPC of D or lower) low-income (household income below £30k) households across England.

The figures show a mixed picture in terms of take up and delivery around the country for the programmes which are now closed to new applications. Overall data does show a clear increase in measures being delivered since the last General Election.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Every upgrade of a home in fuel poverty is a step in the right direction.

“But we need progress to be delivered at speed and with the urgency the energy bills crisis deserves. Every winter spent in a cold damp home causes misery and health complications for millions of households.

“This is why the Government’s Warm Homes Plan must be rooted in a ‘Warmth First’ principle, treating a warm, dry and affordable-to-heat home as a basic human right.

“And upgrades to homes must come alongside reform to electricity pricing and moves to secure our energy supply in the future, especially given that the North Sea will not be able to meet our gas heating needs from 2027.”

Government urged to prioritise warmth first in £13.2bn home upgrade plan

The End Fuel Poverty Coalition has written to the Minister for Energy Consumers, urging the Government to ensure its £13.2 billion Warm Homes Plan delivers real, lasting benefits for people living in cold, damp and unaffordable homes.

In a detailed briefing also shared with key departments across Whitehall, the Coalition outlines a series of reforms to ensure the landmark retrofit scheme improves lives, protects health and cuts bills for those who need it most.

The Coalition says the success of the scheme should be judged not by how many insulation measures are installed or homes moved to EPC band C, but by how far it goes in ending fuel poverty.

A spokesperson for the End Fuel Poverty Coalition, said:

“This is a huge opportunity to fix a scandal that’s been hurting millions of households for years and years.

“Cold homes cause suffering, cost lives and drive up costs for the NHS. The Warm Homes Plan can be the solution – but only if it’s designed around the real needs of people, not just technical targets.”

The Coalition is calling for the Plan to be rooted in a “Warmth First” principle, treating a warm, dry and affordable-to-heat home as a basic human right.

It says the programme must include a “Warm Home Guarantee” to track actual comfort and bill savings, and ensure high-quality installations delivered by skilled local workers.

It also urges the government to fund trusted, face-to-face advice services to help residents through the retrofit journey and access benefits, energy support and legal protections.

The briefing also warns ministers against diverting Warm Homes Plan money into existing schemes, or using it to cut electricity prices for wealthier households. Instead, it argues affordability reforms like levy rebalancing should be funded separately, to avoid punishing low-income households who still rely on gas heating.

In its recommendations, the Coalition draws on lessons from successful past initiatives like the Warm Zones scheme, which provided hands-on support, repeated outreach, and direct help accessing income top-ups—going beyond simple insulation measures to ensure long-term impact.

The spokesperson continued:

“If we’re serious about reducing child poverty, pressure on the NHS, and energy insecurity, this Plan must be more than just insulation. It must be about giving people back control, comfort and dignity in their homes.”

ENDS

To read the full letter and briefing, visit

https://www.endfuelpoverty.org.uk/wp-content/uploads/Warm-Homes-Plan-letter-priorities-1.pdf

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.