Labour’s flagship £13.2 billion Warm Homes Plan will not face any cuts in the upcoming government spending review, according to reports.
The scheme, designed to improve household energy efficiency across the UK, had faced speculation of potential reductions amid budget negotiations.
Chancellor Rachel Reeves has confirmed the full funding will be preserved, marking a key win for Energy Secretary Ed Miliband, who has been in discussions with the Treasury over the Department for Energy Security and Net Zero’s future budget.
The decision ensures the scheme remains intact as part of Labour’s broader green investment strategy.
Labour’s manifesto had pledged an additional £6.6 billion for home insulation, solar panel installation, and low-carbon heating solutions such as heat pumps.
This funding builds on the £6.6 billion already committed under the previous Conservative government, bringing the total investment to £13.2 billion. The aim is to retrofit an estimated five million homes by 2029.
Concerns had mounted after only £3.4 billion was allocated over three years in the autumn budget. However, the latest confirmation indicates that Labour will meet its full pledge, helping to reduce household energy bills by up to £300 annually and support the UK’s 2030 net zero targets.
The UK currently holds one of the least energy-efficient housing stocks in Europe, and the Warm Homes Plan is considered critical to improving national energy performance. Grants and low-interest loans provided through the scheme will support families in making essential upgrades, including improved insulation, solar panels, energy storage systems, and more sustainable heating.
Environmental charities, campaigners, and industry leaders have called on the government to safeguard the programme, warning that any reduction could jeopardise jobs, increase pressure on the NHS, and undermine efforts to combat fuel poverty.
Recent polling indicates strong public support for maintaining the scheme. Nearly half of Labour voters said they would lose trust in the party if the warm homes funding was cut.
Ministers have reiterated that all manifesto pledges will be upheld in the forthcoming spending review. However, ongoing negotiations between the Treasury and several departments, including energy, housing, and the Home Office, remain unresolved.
Budgets for departments such as education and environment have already been agreed, while others—including the Foreign Office and the Department for Culture, Media and Sport—are expected to face deeper spending cuts.
Labour’s commitment to sustainable energy and household efficiency remains central to its economic and environmental agenda, with the Warm Homes Plan playing a key role in achieving both goals.
