The Warm Homes plan aims to improve energy efficiency and reduce energy costs for households, particularly for low-income and vulnerable families. The initiative focuses on retrofitting homes with insulation, low-carbon heating technologies, and other energy-efficient measures.
It is part of the broader effort to achieve Net Zero greenhouse gas emissions by 2050 and to address fuel poverty, ensuring that homes are warm and energy-efficient for all residents.
Simon Ayers MBE, Chief Executive Officer of TrustMark, said: “TrustMark is pleased to hear the announcement in the Spending Review to fully meet the Government’s Warm Homes Plan commitment to upgrade homes through energy efficiency measures, alongside installing heat pumps and other low-carbon technologies, such as solar panels and batteries. We look forward to continuing to collaborate with the Government and industry to deliver these commitments to support thousands of households in the months and years ahead.”
Russell Dean, deputy divisional manager at Mitsubishi Electric, emphasized that energy security is national security, highlighting the importance of reducing electricity prices and promoting heat pump adoption to decrease reliance on oil and gas.
He said: “Greater government certainty on policies looking to decarbonise heating, such as through the Future Homes Standard and the rebalancing of the price of electricity, will make this a reality and give the industry confidence to invest. The government’s continued support for the Warm Homes Plan is welcomed, and we urge them to maintain support for families to decarbonise their homes, such as funding through the Boiler Upgrade Scheme. This will be essential in helping government meet its heat pump installation target and Net Zero by 2050.
The Heat Pump Association's chief executive, Charlotte Lee, said: “Confirmation of the full £13.2 billion of funding for the Warm Homes Plan, to invest in schemes to support the rollout of heat pumps alongside other measures, is great news for the industry.
Whilst we await the detail, expected by October 2025, this commitment sends a clear signal to the sector that this Government is committed to decarbonising buildings, enhancing the UK’s energy security, reducing consumer energy bills and meeting its legally binding carbon budgets.
Coupled with last week's announcement on the Future Homes Standard which will see low carbon heating become standard in new builds, the recent announcements on long term funding and policy direction are encouraging for the heat pump sector.”
Yselkla Farmer, chief executive of BEAMA, said: “The government has committed to deliver on its manifesto commitment to upgrade millions of homes, saving people an average of £600 in bills. We’re entering a pivotal phase of the energy transition and this investment pledge shows this Government remains committed to help decarbonise our building stock, reduce energy bills, and deliver a consumer-focused clean power system where homes are warmer, healthier and safer.
'We’ve already seen positive progress in the heat pump rollout, the ideal choice for many, as a result of the Boiler Upgrade Scheme, and it’s great to see this scheme will continue to be supported.
'But with an estimated 20% of homes unsuitable for a heat pump, there is no question that the current product scope needs to be expanded to ensure other heat electrification technologies, such as heat batteries and heat retention storage heaters, are not unfairly disadvantaged.
'Households need to be provided with flexibility and a range of different options to support them on their electrification journeys. By doubling down on choice, we can move away from the unhelpful binary technology list and ensure customers are at the heart of the transition to clean heat.'
Tamsin Lishman, chief executive of Kensa said: “The confirmation of a significant £13 billion budget for the Warm Homes Plan is a hugely positive step towards improving the efficiency of our homes, cutting energy bills and ending our reliance on imported fossil fuels. With home grown renewable energy increasingly the cheapest option available, it no longer makes sense to warm our homes byburning gas extracted thousands of miles away, transported here in tankers, heating the planet in the process.
“The commitment to adequately fund the Warm Homes Plan is a firm acknowledgement of the challenges we face in upgrading our homes, but also of the government’s determination to tackle these head on. For too long heat policy suffered from uncertainty and indecision, delaying action and dampening investor confidence. But today’s Warm Homes commitment, and last week’s confirmation that the Future Homes Standard will soon end boiler installations in newhomes, demonstrates the leadership needed to kickstart a clean heat revolution.
“Kensa has long standing plans for investment, expanding our heat pump production capacity, onshoring and enhancing our supply chains, and growing our workforce. There remain important steps to unlock that investment, not least legislating for the Future Homes Standard, but I am buoyed by the progress we have seen in the last week, and confident we will soon see that investment start to flow into the sector.'