Spending Review 2025: What You Need to Know About the Warm Homes Plan

The Spending Review 2025, announced by Chancellor Rachael Reeves, includes a major push to reduce home energy costs through the Warm Homes Plan. This initiative is central to the government’s strategy to tackle fuel poverty and support the UK’s transition to net zero.

What Is the Warm Homes Plan?

A £13.2 billion investment from 2025-26 to 2029-30, making homes warmer, more energy-efficient, and cheaper to heat. Targets include:

• Upgrading insulation, installing heat pumps, and solar panels.
• Supporting particularly vulnerable and low-income households with tailored retrofit upgrades.

Goals and Expected Impact

• Reducing energy bills for working families and pensioners up to £600 annually through improved heating and insulation.
• Provide upgrades to hundreds of thousands of homes, including installation of low-carbon heating systems like heat pumps.
• Advance the UK’s net-zero objectives, aligned with broader infrastructure and environmental investment.

What Households Will Benefit?

• Low-income families & pensioners in EPC-rated D-G homes can receive fully funded energy-saving and heating upgrades.
• Up to 300,000 homes to receive upgrades next year, including planning reforms to simplify domestic heat pump installations.
• Local authorities will deliver schemes via the Warm Homes: Local Grant, which has received £500 million in funding for 2025-28.

Role of Local Authorities

• Councils are responsible for identifying eligible households and managing retrofit delivery under the Local Grant Programme.
• Projects may include insulation, solar panels, and heat pumps, with recipients contributing to net-zero cost.

Additional Support Measures

• Expanded Warm Home Discount: More families on low income may receive the £150 rebate.
• Boiler Upgrade Scheme: Continued funding – up to £7,500 towards heat pumps.
• Alignment with Home Upgrade Grant, Social Decarbonisation, and Great British Insulation schemes.

What You Should Do

If you own or rent a home with an EPC rating of D to G:

1. Check eligibility for the Warm Homes plan via your local authority.
2. Apply for fully funded retrofits, including insulation and low-carbon heating.
3. Explore additional schemes like the Boiler Upgrade Scheme and Warm Home Discount.

Visit Energy Advice Helpline to:

• Understand your eligibility
• Learn more about energy savings
• Apply for government-backed grants

Significance of the Warm Homes Plan

The Warm Homes Plan is the most important energy-efficiency investment for UK homes in a generation. With £13.2 billion allocated and practical support for low-income households, it marks a major step toward more affordable, sustainable living.

For more on the Spending Review 2025, visit The Guardian: Spending Review 2025