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Fuel poverty plan review published with two actions closed and six new actions added

The Welsh Government has reviewed its Tackling Fuel Poverty Plan, closing two of the original ten short-term actions, extending eight and adding six new short-term actions.

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The Welsh Government published a review of its Tackling Fuel Poverty Plan on 23 June 2025, closing two of the plan's original actions and adding six new short-term actions. The plan, which sets targets for tackling fuel poverty, was first published in March 2021 with ten short-term actions to be delivered with partners1.

Following the review, two of the original actions and commitments were closed, eight actions were developed and extended as ongoing, and six new short-term actions were added1. The two closed actions cover the Warm Homes Programme and domestic energy efficiency advice and support services. On the programme, the government said it published its consultation outcome report on 14 June 2023 and launched the new Warm Homes Nest scheme on 1 April 20241.

"Following this review, we have closed two of the original actions and commitments, developed and extended eight actions, which are ongoing, and added six new, short-term actions."
Tackling fuel poverty: priority actions update, GOV.WALES1

The review sets out spending and delivery figures for the Nest scheme by year1:

YearInvestment in NestHomes improvedHouseholds given free adviceModelled average bill saving
2021 to 2022£24.5 million5,12715,777£300 per year
2022 to 2023£26.9 million4,36421,959£422 per year
2023 to 2024£39.3 million4,81612,809£595 per year

The document states that since 2011 the Welsh Government has invested more than £251 million in home energy efficiency through the Warm Homes Nest scheme, that Nest has helped more than 82,000 lower income households by installing measures, and that more than 210,800 have contacted Nest for free energy efficiency advice. Warm Homes Nest is described as a seven year scheme and has been given a 7% allocation uplift in the Welsh Government's budget for 2025-261.

On prepayment meters, the review says the temporary ban on involuntary installation in 2023, together with Ofgem's Code of Practice, reduced overreliance on them for recovering arrears, and that the code became part of Supplier Licence Conditions on 8 November 2023. It adds that since 1 October 2023 households on prepayment meters have paid lower standing charges than those on other payment methods, which it calls a welcome first step1.

Why it matters for households

The plan is the Welsh Government's framework for reducing the number of households that cannot afford to keep their homes warm, and the review confirms which parts of it are finished, which continue and which are new. For a household in or near fuel poverty in Wales, the practical route to help named in the document is the Warm Homes Nest scheme, which provides a package of insulation and decarbonisation measures to eligible households, alongside free energy savings advice1. The modelled average bill saving attributed to the scheme rose from £300 per year in 2021 to 2022 to £595 per year in 2023 to 2024, though these are modelled figures rather than measured savings for individual homes1.

The review also touches on how homes are heated and paid for. The prepayment meter measures described affect how standing charges are set for those payment methods, which is a running cost rather than an upfront one1. The document does not set out new eligibility rules or payment levels for individual households, and no new funding figures for the six added actions are given in the review1.

What happens next

The Welsh Government says it is developing updated fuel poverty estimates relating to October 2024 and anticipates publishing them early in the autumn, with interim targets based on EPC ratings to follow after input from the Fuel Poverty Advisory Panel1. The review says the crisis route, which currently runs until March 2026, will be promoted widely and reviewed annually, and that progress on the extended actions will be reviewed in two years' time1. The Cold Weather Resilience Plan is to be reviewed with the panel ahead of next winter1.

Sources1 cited
  1. Tackling fuel poverty: priority actions update HTML | GOV.WALES, gov.wales