The Welsh Government has budgeted £35 million this financial year for the Warm Homes Nest scheme, Cabinet Secretary for Social Justice Jane Hutt said in a written statement on 7 August 20251. The statement was published on the same day as official figures showing that 340,000 households in Wales, or 25%, were living in fuel poverty in October 20241.
A further 215,000 households, 16%, are estimated to have been at risk of fuel poverty1. The statement attributes the figures to the global energy price surge after the reopening of economies following Covid-19, which it says was significantly exacerbated by Russia's war against Ukraine, and notes that prices remain significantly higher than before the surge while income growth has not kept pace1.
Nest is described as the Welsh Government's programme to assist people on low incomes living in cold, damp homes with free energy efficiency measures and affordable, low carbon heating solutions1. It includes a crisis route providing emergency support to households without heating or hot water, and a free and impartial advice service to help households access the most appropriate scheme for their circumstances, including Nest, the Energy Company Obligation scheme, the Great British Insulation Scheme and schemes run by local authorities1.
"We have budgeted £35 million this financial year to the Warm Homes Nest scheme"
The statement also sets out other support: the Discretionary Assistance Fund for those in financial crisis, and funding for the Fuel Bank Foundation for households in Wales that pre-pay for fuel and are at risk of disconnection, including vouchers for pre-payment meter customers and help with fuel costs for off-grid households1. It notes UK Government decisions to expand the Warm Homes Discount and restore the Winter Fuel Payment to pensioners earning up to £35,0001.
Why it matters for households
The £35 million is a budget figure for the scheme, not a per-household payment, and the statement does not set out how many homes it is expected to reach or what individual measures are worth1. For a household in Wales on a low income, the practical relevance is that Nest is the route the Welsh Government names for free energy efficiency measures and low carbon heating, with a separate crisis route for homes without heating or hot water1. The advice service is described as helping households work out which scheme fits, which matters where several schemes operate in parallel1.
The fuel poverty figures give the scale: a quarter of Welsh households were in fuel poverty in October 2024, with a further 16% at risk1. Improving a home's fabric and heating reduces how much energy it needs to stay warm, which is the part of energy independence a household controls directly. The statement does not report take-up rates, waiting times or how the £35 million compares with previous years1.
What happens next
The statement was issued during recess to keep Members informed, and Jane Hutt said she would be happy to make a further statement or answer questions when the Senedd returns1. No date for that return, and no further scheme changes, are reported1.