Warm Homes Plan delayed to 2026

In advance of the full plan, ministers confirmed earlier this year that social landlords in England will receive up to £1.29bn of funding for retrofit. A further £500m of grant retrofit funding was confirmed for local authorities.

But key questions remain, including whether the existing £7,500 heat pump grant available to households under the Boiler Upgrade Scheme will remain or be cut back, and how environmental projects will be funded after green levies were scrapped at last month’s Budget.

At the Budget, chancellor Rachel Reeves scrapped the long-standing Energy Company Obligation (ECO) scheme, where customers subsidise insulation for fuel-poor households.

The ECO scheme will end in March 2026. The Treasury claims this will save the average household £59 per year, but the Warm Homes Plan is due to set out a replacement scheme.

Ellie Chowns, leader of the parliamentary Green Party, said “it is nothing short of shameful” that the government has “chosen to delay the Warm Homes Plan once again”.

She said: “Every week this plan is put back leaves more people languishing in cold, damp homes and piles yet more uncertainty onto the retrofit sector at a time when experts are already warning that cancelling ECO without a ready replacement puts 10,000 skilled jobs at risk.”

Ms Chowns added: “If we are to truly tackle fuel poverty, the government should publish the Warm Homes Plan immediately, set a clear timetable for replacing the ECO scheme and guarantee prioritised funding for low-income households in the coldest, least efficient homes.”

James Dyson of consultancy E3G warned: “After a year and a half in office, the government is still without a credible plan to help households struggling with record high energy bills, and to give businesses the confidence to grow and invest in upskilling workers in future-proof jobs.

“Home upgrades, which include solar panels and cost-effective insulation, can help people cut their energy bills by hundreds of pounds. Government playing politics is delaying making these upgrades affordable and accessible.”

Simon Francis of the End Fuel Poverty Coalition said: “Every week of delay to the Warm Homes Plan means households are stuck in cold, damp homes for longer. And every week of delay also means more pressure on the NHS, as it has to deal with the health consequences of people living with mould and cold, and delays mean more uncertainty for supply chains who deliver energy efficiency measures.

“After five years of the energy bills crisis and 18 months of a government elected to deliver a comprehensive Warm Homes Plan, people cannot wait indefinitely for a clear strategy to make homes warmer, safer and cheaper to heat.”

Claire Coutinho, Conservative shadow energy secretary, said: “Labour’s Warm Homes Plan was supposed to cut bills for families by £500 a year – but bills have gone up by almost £200 since the election and Ed Miliband is set to pile on even more costs in the new year.

“These delays are a symptom of a government which keeps trying and failing to rein in Ed Miliband’s ideology but is too weak to do so, leaving the public to foot the bill.”

In response to last month’s cut to the ECO scheme, retrofit installers warned that their sector will “fall off a cliff” and urged the chancellor to extend the scheme for 12 months to smooth the transition.