The first Budget of the new Government confirmed investment in energy and highlighted a "down payment" on the Warm Homes Plan, but contained no further support for households with their energy bills, the End Fuel Poverty Coalition reported1.
The £3.4 billion announced over three years for retrofitting homes was described by E3G as welcome investment certainty for industry, but well short of the Labour Manifesto pledge to invest £13.2 billion over the Parliament1. The End Fuel Poverty Coalition said uncertainty remains over whether Ministers will be able to confirm the £13.2 billion promised to help people improve their homes, and that the door has been left open to boost the investment in the Spending Review due in the Spring1.
On the Household Support Fund, the Coalition said the increase announced in the Budget is essentially an extension of the current Fund through to the end of March 2026 at the same level as under the last Government and with no adjustment for inflation1. It added that with more older people turning to the Fund, local authorities will find it stretched even further1.
The Budget also confirmed the means testing of the Winter Fuel Payment. Independent Age said up to 970,000 eligible older people could be missing out on Pension Credit, and would now lose the Winter Fuel Payment despite living on a low income1. The End Fuel Poverty Coalition said the Chancellor took Winter Fuel Payments away from millions of older people with disabilities and health conditions1.
"while £3.4 billion is a welcome first instalment on the Warm Homes Plan, it is only the start of the journey"
| Measure | Budget outcome |
|---|---|
| Warm Homes Plan | £3.4 billion over three years confirmed1 |
| Labour Manifesto pledge | £13.2 billion over the Parliament, not yet confirmed1 |
| Household Support Fund | Extended to end of March 2026, same level as before, no inflation adjustment1 |
| Winter Fuel Payment | Means testing to proceed1 |
Why it matters for households
The money confirmed for the Warm Homes Plan is a first instalment against a larger figure promised in the manifesto, and the full £13.2 billion has not been confirmed1. For a household waiting on insulation or heating upgrades, the practical effect is that the scale and timing of support beyond the initial £3.4 billion remains undecided until the Spring Spending Review1.
No new money was announced for energy bills this winter1. The Household Support Fund extension runs at the same cash level as under the previous Government, with no inflation adjustment, at a time when the Coalition says more older people are turning to it1. Households that previously received the Winter Fuel Payment and are now outside Pension Credit face the loss of that payment, with Independent Age citing up to 970,000 eligible older people not claiming Pension Credit1.
The grants-schemes hub covers the schemes that remain available, and the Warm Homes: Local Grant is the delivery route for much of the retrofit funding. Households in park homes and static caravans and vulnerable and medically dependent households face particular exposure where bill support is withdrawn, and the Warm Home Discount versus Winter Fuel Payment comparison sets out how the two differ.
What happens next
The Spending Review is due in the Spring, and the Coalition said the door has been left open to boost the investment then1. E3G said this must now be delivered1. No date has been reported for a decision on the full £13.2 billion.