Plans to bring back the winter fuel payment may not succeed if the government reduces funding for home insulation improvements, according to warnings from numerous charities and experts before the upcoming spending review.
The Labour party had promised to improve insulation in homes to lower household bills and reduce energy wastage. However, the funding for this warm homes plan, promising £13.2bn, is threatened as Chancellor Rachel Reeves aims for significant spending cuts to meet fiscal rules. Despite the damaging criticism, Reeves may reverse the previous cuts in winter fuel payments to older people. But, the rumored cuts to insulation could significantly reduce the money available for these efficiency upgrades.
Over 50 senior figures from organizations focused on social causes, environmental campaigns, and housing wrote to Darren Jones, the chief secretary of the Treasury, to urge the government to maintain its insulation improvement program for vulnerable populations, including low-income individuals and older people.
James Dyson, a senior researcher for the green thinktank E3G, which helped organize the letter, stated that reinstating winter fuel payments would be pointless if the government did not fulfill its promise to improve cold homes. The lack of insulation improvements could negate the benefits of restoring the winter fuel payment.
Caroline Abrahams, charity director of Age UK, echoed these sentiments, highlighting the importance of making older people’s homes more energy-efficient. The warm homes plan could save around 3 million vulnerable households approximately £220 annually.
Research by E3G suggests that nearly half a million pensioners could face high energy bills if the manifesto pledge was not fulfilled. The warm homes plan is crucial to the government’s promise to reduce energy bills by £300. Efforts to subsidize insulation in England and Wales previously stalled under the previous government.
The letter also cited research showing that Labour-held constituencies with the highest rates of fuel poverty would be disproportionately affected. Furthermore, the full delivery of the warm homes plan could enhance economic growth by cost savings and creating jobs in insulation.
Among the organizations signing the letter were Citizens Advice, Scope, the National Housing Federation, Generation Rent, Energy Advice Helpline, and the National Pensioners Convention. The government spokesperson acknowledged the importance of upgrading British homes to make them warmer and more efficient, stating that up to 300,000 households would benefit from upgrades through the warm homes plan this year.
Source: https://www.theguardian.com/politics/2025/may/27/dont-cut-132bn-warm-homes-pledge-over-winter-fuel-payments-labour-told
