Spending review – Industry reacts to the Warm Home plans

  Posted by: electime      11th June 2025

Following today’s spending review, the budget for the Warm Homes plan has been confirmed at £13 billion, aiming to help cut household bills by hundreds of pounds per year by upgrading homes through insulation, heating and solar panels

Tamsin Lishman, CEO of Kensa, comments: 

“Today’s 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 by burning 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 new homes, 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.”

The MCS Foundation Welcomes Funding For Warm Homes Plan :

The MCS Foundation has welcomed the announcement in today’s Spending Review that the Government has committed to fully funding the Warm Homes Plan in line with Labour’s 2024 Manifesto Commitment. The Warm Homes Plan, further details of which will be revealed later this year, will help people find ways to save money on energy bills and deliver warmer, cleaner to heat homes through initiatives such as the Boiler Upgrade Scheme.

Garry Felgate, Chief Executive of The MCS Foundation, said: “It is fantastic to see the Government demonstrate its commitment to the decarbonisation of homes through a fully funded Warm Homes Plan.

“Decarbonising homes can deliver warmer homes, lower bills, and tackle the climate crisis. Following last week’s news that all new homes in England will come with renewables as standard, this is an important next step in providing certainty for industry and consumers, which will aid the rollout of low-carbon technologies such as heat pumps.

“We look forward to seeing further details of The Warm Homes Plan in due course.”

Yselkla Farmer, CEO of BEAMA, comments:

“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 today’s 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.

“Our research shows we could unlock up to 10GW of thermal storage flexibility by 2030, which both NESO and the CCC have stressed is crucial for the UK to meet its clean power targets and seize the economic opportunity that comes with it. This means there is huge potential for setting up the electrification of heat and hot water for success, but a lot still depends on how these target funds and incentives are deployed.

“The danger is that product myopia will lead to market distortion and compromise what should be the priority, engaging the end user.

“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. The goal should be to normalise heat electrification for customers, a point we made in our response to the BUS consultation which closed today.

“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.”