The Government published its Carbon Budget and Growth Delivery Plan on 29 October 2025, setting out how the UK will meet its climate targets1. The plan covers the emissions reductions required for carbon budgets four to six, spanning 2023 to 20372. It is the current Government's first comprehensive plan for achieving the next carbon budgets1.
The Climate Change Committee, the statutory adviser, said it would assess the plan fully in its annual progress report in June next year1. Its chair, Nigel Topping, said there had been encouraging signs of progress in delivery indicators, but that a significant increase in roll-out rates is needed in many areas in the next few years1.
"Our number one recommendation remains to make electricity cheaper. This means taking policy costs off electricity bills."
The committee said this was vital for ensuring the required scale-up of heat pump installations in the plan, and that it hoped to see it addressed in the upcoming Warm Homes Plan1. The Government's response to the committee's 2025 progress report was published alongside the plan and set out actions to address key challenges identified2.
The plan follows a series of legal and policy steps. The 2021 Net Zero Strategy was found unlawful by the High Court in July 2022, and the March 2023 Carbon Budget Delivery Plan that replaced it was found unlawful in May 2024, with the Government required to prepare a revised plan by 2 May 2025; that deadline was extended to October 20252. The strategy for achieving clean power was published in December 2024 as the Clean Power 2030 Action Plan, and the Great British Energy Act received Royal Assent on 15 May 20252.
Carbon budgets are a statutory cap on the total greenhouse gas emissions the UK can emit in a five-year period2. The budgets set so far are:
| Budget | Period | Cap | Reduction on 1990 levels |
|---|---|---|---|
| Fourth | 2023 to 2027 | 1,950 MtCO2e | 52% |
| Fifth | 2028 to 2032 | 1,725 MtCO2e | 58% |
| Sixth | 2033 to 2037 | 965 MtCO2e | 77% |
| Seventh | 2038 to 2042 | 535 MtCO2e | 87% |
Source:2
The seventh carbon budget was agreed in both Houses following parliamentary scrutiny, committing the UK to emissions reductions of 87% from 1990 levels by 20422. The Government has said it will publish a delivery plan setting out how it will meet the reductions required for that budget2.
Why it matters for households
The plan sets the framework within which household energy measures, including heat pumps and home insulation, are expected to be delivered. The committee's position is that the scale-up of heat pump installations depends on making electricity cheaper by taking policy costs off electricity bills1. That links the cost of running a heat pump to the wider question of a home's energy independence, since a household that can heat its home from electricity it generates or buys at lower cost is less exposed to fossil fuel prices. The committee's 2026 progress report said the Government "is not moving fast enough to reduce greenhouse gas emissions and protect households and businesses from volatile fossil fuel prices"2. It also said slow progress in electrification could make it more likely the UK will miss its emissions reductions targets2. The committee concluded the UK could still hit its targets and remain on track for net zero by 2050, but that significant risks could derail progress without urgent policy action2. The Government has not yet responded to that progress report2.
What happens next
The committee will assess the Carbon Budget and Growth Delivery Plan fully in its annual progress report in June 20261. The Government has said it will publish a new delivery plan setting out plans to achieve the reductions required for the seventh carbon budget2. The committee's advice on the seventh carbon budget was published in February 2025, and legislation was laid before Parliament in June 20262. The Scottish Government published its most recent strategy, Scotland's Climate Change Plan: 2026 to 2040, in March 20262. The zero emission vehicle mandate is due to be reviewed in 20262.
Sources2 cited
- Response to the Government's Carbon Budget and Growth Delivery Plan - Climate Change Committee, theccc.org.uk
- [](https://researchbriefings.files.parliament.uk/documents/CBP-9888/CBP-9888.pdf), researchbriefings.files.parliament.uk