The Treasury's Spending Review 2025, published on 30 June 2025, confirms a further £13.2 billion for the Warm Homes Plan between 2025-26 and 2029-301. The document states the plan will upgrade homes through insulation, heating and solar panels1.
In its own words:
"The Warm Homes Plan will help to cut bills by hundreds of pounds per year for families across the country by upgrading homes through insulation, heating and solar panels"
The review sets departmental budgets for day-to-day spending until 2028-29 and until 2029-30 for capital investment, with total departmental budgets growing by 2.3% across the period1. The Department for Energy Security and Net Zero is allocated £425 million in the first year of the settlement, declining across the period to £387 million by the final year1.
The document frames energy security as "core to the government's national security plans", stating the UK "has been left exposed to volatile international fossil fuel markets"1. Alongside the Warm Homes Plan, it confirms £14.2 billion for Sizewell C over the review period, described as the first state-backed nuclear power station since 1988, and gives the green light to a Small Modular Reactor and Carbon Capture, Usage and Storage programmes1. It also allocates £300 million of Great British Energy support over the period for offshore wind supply chains1.
Devolved governments receive additional funding through the Barnett formula: on average £4.8 billion per year for day-to-day spending between 2026-27 and 2028-29, and £930 million capital between 2026-27 and 2029-301. This includes, on average per year, £2.4 billion resource and £510 million capital for the Scottish Government, £1.4 billion resource and £200 million capital for the Welsh Government, and £1 billion resource for the Northern Ireland Executive1.
| Nation | Resource, average per year | Capital |
|---|---|---|
| Scotland | £2.4 billion | £510 million |
| Wales | £1.4 billion | £200 million |
| Northern Ireland | £1 billion | £220 million |
The review does not set out which specific measures will be funded, how households will apply, or which grants and schemes will deliver the upgrades. Those details have not been reported.
Why it matters for households
The Warm Homes Plan is the funding line behind much of the household energy efficiency support currently in circulation, including the Great British Insulation Scheme and the Warm Homes Local Grant. A confirmed multi-year capital settlement gives those programmes a funding horizon beyond a single year, which matters for households weighing up insulation and glazing work, a heat pump or solar panels, because scheme eligibility and installer capacity tend to follow the money.
For a home's energy independence, the practical effect is on demand rather than supply. Insulation and glazing reduce the heat a property loses, so less energy is needed to keep it warm; solar panels generate electricity on site. The review's own claim is that this cuts bills by hundreds of pounds per year, though it does not break that figure down by measure, property type or region1. The separate commitments on Sizewell C, small modular reactors and offshore wind concern generation capacity and supply chains, not household installations.
The devolved funding matters because energy efficiency schemes are delivered differently in Scotland, Wales and Northern Ireland, and the Barnett consequentials are the mechanism by which spending announced in England reaches those administrations. How each devolved government will use its allocation has not been reported.
What happens next
The review sets budgets to 2028-29 for day-to-day spending and to 2029-30 for capital1. No timetable for individual Warm Homes Plan measures, application windows or eligibility changes is given in the document.