The UK spending review, published on 11 June 2025, confirmed £8.3bn in funding for Great British Energy (GB Energy) and the linked GB Energy, Nuclear1. Reporting after the review states that GB Energy will "effectively lose £2.5bn" to the allied nuclear company, cutting the amount it has to spend on wind, solar and other technologies1.
The review also gives GB Energy an extra £300m in support for offshore wind supply chains, and confirms up to £80m for port investment to support floating offshore wind deployment at Port Talbot in Wales, subject to final due diligence1. The document says GB Energy will be designated as a "public financial institution"1. The £8.3bn allocation was achieved by allocating £9.6bn in "additional financial transactions, such as loans and equity investments, to support growth"1.
On home upgrades, the review confirmed the pledged £13.2bn for the warm homes plan, covering spending between 2025-26 and 2029-301. The government says this will help cut bills by up to £600 per household through energy efficiency measures, heat pumps, solar panels and batteries1. Around one-fifth of the nation's housing stock is to be upgraded by 2029, although to a varying degree1. Nesta describes the funding as roughly double the previous government's commitment, amounting to a £6.6bn increase in government spending on home upgrades over the current parliament compared with the previous one1. Some highlighted that £5bn of the £13.2bn total is set to come from "financial transactions", likely to mean loans rather than capital spending1. Further details for the warm homes plan will be confirmed in October1.
Ahead of the review, the chancellor announced a £14.2bn investment in the planned Sizewell C new nuclear power plant in Suffolk1. Each new plant will have a capacity of 3.2 gigawatts, enough to power six million homes, and Sizewell C will provide 10,000 jobs including 1,500 apprenticeships during construction, according to the government1. The plant is being jointly developed by the UK government with French state-owned utility firm EDF Energy, and is due to be funded under the regulated asset base model, so will not receive a Contracts for Difference1.
"It's also very important that millions of customers will see a direct benefit from today's announcements. By reaffirming the funding to improve the energy efficiency of millions of homes and supporting the switch to cleaner heating alternatives, customers can expect warmer and more comfortable homes, cleaner air and cheaper bills, showing how the energy transition can improve their daily lives."
| Item | Amount confirmed |
|---|---|
| GB Energy and GB Energy, Nuclear | £8.3bn |
| Warm homes plan | £13.2bn (2025-26 to 2029-30) |
| Sizewell C | £14.2bn |
| Offshore wind supply chains (GB Energy) | £300m |
| Port Talbot floating offshore wind port investment | Up to £80m |
Why it matters for households
The warm homes plan funding is the part of the review with the most direct bearing on a home's energy independence, because it covers energy efficiency measures, heat pumps, solar panels and batteries1. The government's stated figure for bill reductions is up to £600 per household1. The £5bn share described as financial transactions, likely loans rather than capital spending, means part of the total may reach households in a different form from direct grant funding, though the review does not set out how that will work1. The GB Energy allocation matters less directly: the reported £2.5bn diversion to GB Energy, Nuclear reduces what the company has for wind, solar and other technologies1, and the review does not state what effect, if any, this has on household bills.
What happens next
The government will publish its "carbon budget delivery plan" in October 2025, and will legislate for the seventh UK carbon budget by June 20261. Further details for the warm homes plan will be confirmed in October1.