More than 50 leading charities and housing experts have raised the alarm that the reinstatement of the winter fuel payment could be rendered ineffective if the government proceeds with proposed cuts to its flagship home insulation upgrades.
The warning comes ahead of the upcoming spending review, where Chancellor Rachel Reeves is expected to outline significant budget reductions.
Prior to forming the government, Labour pledged to prioritise the insulation of the UK’s draughty homes to cut energy waste and ease the burden of rising household bills.
However, their £13.2 billion Warm Homes Plan—a key pillar of that promise—now appears at risk as the Treasury seeks to rein in public spending to meet strict fiscal targets.
While reports suggest Reeves is set to reverse the controversial removal of the winter fuel payment for many pensioners following public backlash, campaigners warn that slashing insulation funding could dramatically weaken the overall impact of the policy reversal.
In a coordinated response, over 50 senior figures from major charities, green organisations and housing groups have signed an open letter to Chief Secretary to the Treasury Darren Jones, urging the government to uphold its commitment to retrofitting Britain’s coldest homes—particularly for low-income households, older people, and those with disabilities.
“Reinstating the winter fuel payment means little if homes remain cold and leaky,” said James Dyson, senior researcher at climate think tank E3G, which co-ordinated the letter. “It’s like pouring water into a sieve. The government must follow through with the £13.2 billion insulation pledge, which offers long-term savings and better health outcomes.”
Age UK’s charity director Caroline Abrahams echoed the sentiment, stressing the urgent need to help older people heat their homes this winter while also ensuring a longer-term solution.
“This winter, many pensioners on modest incomes may struggle again. But insulating homes properly is a more sustainable and strategic fix. Labour’s manifesto set out a sensible pace for this – it must not now be abandoned.”
The Warm Homes Plan is projected to save around 3 million vulnerable households approximately £220 annually, while contributing to the government’s wider ambition to cut average energy bills by £300 during this Parliament.
The plan also promises wider economic benefits, including a projected 0.8% boost to GDP, driven by energy savings and job creation in the green retrofit sector.
Despite Reeves allocating £3.4 billion over three years to the plan in the last budget, the remaining funding remains under review, with a final decision expected in phase two of the spending review on 11 June.
The call to protect the plan comes amid fresh analysis from E3G showing that nearly half a million pensioners could face disproportionately high energy bills if insulation plans are diluted.
Vulnerable groups, including people with disabilities and the elderly, stand to lose the most—half of the homes retrofitted under the previous scheme housed someone with a disability, and nearly a third included someone over 65.
Among the organisations backing the letter are Citizens Advice, Scope, the National Housing Federation, Generation Rent, the Energy Advice Helpline, and the National Pensioners Convention.
A government spokesperson responded, highlighting the urgency of tackling Britain’s poorly insulated housing stock in light of recent energy crises:
“The energy shocks of recent years show the pressing need to go further and faster. This year alone, up to 300,000 households will receive upgrades through the Warm Homes Plan, including insulation, double glazing, solar panels, and heat pumps.”
As the debate intensifies ahead of the June spending review, campaigners are urging the government to stick to its insulation commitments—arguing that the combined effect of winter fuel support and warm homes upgrades is essential to protect millions of households this winter and beyond.
