• A £3.4 billion investment in the Warm Homes Plan from the Autumn Budget will upgrade 350,000 homes in three years.
  • The budget emphasises skills development, technology investments, and introduces GB Energy to boost green energy.
  • Professionals urge clearer plans for heat pump incentives and support for widespread home decarbonisation initiatives.

What does the UK’s Autumn Budget mean for the future of the country’s home and energy sectors?

Having taken office this July, the UK’s Labour government has now detailed its first Autumn budget. This government’s manifesto and subsequent statements have all highlighted the importance of investment and growth. During her announcement, the Chancellor of the Exchequer, Rachel Reeves, drove this point home. She led into her budget with the mantra “invest, invest, invest”. 

Professionals in the heating and energy sector had high hopes for this budget

There was a desire for initiatives to enhance energy efficiency in homes through the Warm Homes Plan. These calls were coupled with support for vulnerable households via social tariffs and increased discounts on energy bills. The industry also aimed for clearer policies to facilitate the transition to low-carbon heating solutions.

What do we know about the budget now?

Heat pumps, solar, and wind power were not specifically mentioned in the budget announcement. However, Reeves did outline the need for increased investment in the future, which included heavy investment in skills, technology, and public services. As well as the confirmation of the formation of GB Energy, which is to be based in Aberdeen.

She explicitly stated that this government would kick-start the Warm Homes Plan with a hefty £3.4 billion investment over three years. The Warm Homes Plan aims to upgrade five million homes over the next five years. The main goals are to reduce energy bills and alleviate fuel poverty, making homes more comfortable and affordable for families.

The £3.4 billion investment is focussed on improving 350,000 households identified as ‘in need’. That includes 250,000 low-income and social homes. It’s also important to note that Reeves outlined a further £1 billion to remediate the dangerous cladding that led to the Grenfell Tower Fire in London in 2017.

This confirmed investment, coupled with the pioneering heat network zones coming in 2026, lay some foundations for positivity. It’s a concerted effort to push the UK’s households out of fuel poverty. Coupled with the consistent mention of upskilling and training, as well as an insistence on reducing the cost of living crisis, the government is clearly set on improving the daily lives of British people. 

However, in the coming days and weeks, industry professionals will call for more detailed plans and continued, or even increased, heat pump incentives. As the UK faces a new energy horizon, with the birth of the publicly owned GB Energy, we will follow closely to determine the ultimate role of heat pumps and home decarbonisation technologies in Labour’s plans.