Chancellor Rachel Reeves confirmed £13.2 billion of funding for the Warm Homes Plan in the spending review statement on 11 June 20251. The money covers spending between 2025-26 and 2029-303. The government says the plan will help cut bills by up to £600 per household through energy efficiency measures, heat pumps, solar panels and batteries2.
The fuel poverty charity National Energy Action welcomed the commitment. Its chief executive Adam Scorer said:
"£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, setting us on a path towards a fair and affordable transition to net zero. We have the financial commitment; now comes the time to deliver for the most vulnerable households."
Solar Energy UK, a trade association, also welcomed the funding, noting that the spending review statement said the plan would cut bills by up to £600 for families "by upgrading homes through energy efficiency measures, alongside installing heat pumps and other low-carbon technologies, such as solar panels and batteries"2. Its chief executive Chris Hewett said the sector was "delighted to see £1.2bn per year earmarked for training and apprenticeships"2.
Carbon Brief reported that £5 billion of the £13.2 billion total is set to come from "financial transactions", likely to mean loans rather than capital spending3. It also reported that the funding follows £3.4 billion announced for the scheme at the autumn budget in 2024, amounting to a £6.6 billion increase in government spending on home upgrades over the current parliament compared with the previous one3. The spending review says further details for the Warm Homes Plan will be confirmed in October3. Energy Systems Catapult, an innovation agency, said the full details of the plan are not expected to be published by the Department for Energy Security and Net Zero until October 20254.
The spending review also confirmed £8.3 billion for Great British Energy and the linked GB Energy, Nuclear, and £14.2 billion for the Sizewell C nuclear plant3.
Why it matters for households
The £13.2 billion is the funding envelope for a plan that has not yet been published in full, so the specific measures a household might qualify for, and the eligibility rules, have not been reported. What the sources describe is the scale and shape of the commitment: money for energy efficiency measures, heat pumps, solar panels and batteries, aimed at homes that are expensive to heat2. Carbon Brief reported that the plan will see around one-fifth of the nation's housing stock upgraded by 2029, "although to a varying degree"3.
For a household, the practical question is whether the funding reaches the fabric of the home. National Energy Action framed the money as able to support a plan "focused on those in the least efficient homes and on the lowest incomes"1. Energy Systems Catapult noted that the government's challenge is to maximise the impact of public funds and ensure they reach those who need them most4. It also noted that the current Energy Company Obligation scheme, one of the largest sources of retrofit funding, is not reaching enough people identified as vulnerable to cold homes4.
The £600 figure is a government estimate of bill savings per household, not a grant amount or a guarantee2. The £5 billion reported as likely to be loans rather than capital spending means part of the total may need to be repaid by whoever receives it3.
What happens next
Further details of the Warm Homes Plan are expected in October 20254. Solar Energy UK said it looks forward to seeing further details in the autumn, alongside the next Carbon Budget and Growth Delivery Plan2.
Sources4 cited
- Spending Review: ‘We have the financial commitment; now comes the time to deliver for the most vulnerable households.’ - National Energy Action (NEA), nea.org.uk
- Solar sector welcomes billions for warm homes, skills and innovation • Solar Energy UK, solarenergyuk.org
- UK spending review 2025: Key climate and energy announcements - Carbon Brief, carbonbrief.org
- Five ways the Warm Homes Plan can support clean energy innovation – Katrina Young & Fay Holland - Energy Systems Catapult, es.catapult.org.uk