Hundreds of thousands of UK households are set to lose access to government subsidies for eco-friendly heat pumps under new plans expected to be announced in the Autumn Budget.
Budget Changes Target Energy Bills
Chancellor Rachel Reeves is preparing to reveal a series of measures aimed at reducing energy bills during her Autumn Budget statement on November 26, 2025. The proposed changes will significantly alter the current support system for households adopting greener heating solutions.
The Labour government's strategy involves removing energy efficiency levies from household bills and instead funding them through the existing warm homes plan. This shift in approach means that heat pump subsidies will become restricted, with support now targeted specifically at those receiving certain benefits from the Department for Work and Pensions.
Industry Experts Voice Concerns
Sam Alvis, head of energy and environment at the Institute of Public Policy Research, acknowledged the government's motivation while highlighting potential risks. "The urge to get bills down is the right one, everything should be on the table," he stated.
However, Alvis cautioned that "the risk here is that, like winter fuel payments, the additional benefit of cutting support schemes for clean technology isn't noticed by the majority, but really is by those that lose out."
More severe criticism came from Leo Vincent, a senior policy adviser at the E3G thinktank, who described the potential move as "robbing Peter to pay Paul." Vincent warned that "this is a disastrous sticking plaster 'solution' that would let down working families across the country who need the security of predictable and low bills."
Broader Implications for Energy Policy
The proposed changes come amid wider government efforts to position Britain as a leader in clean energy. Prime Minister Keir Starmer recently emphasised this commitment during his attendance at a leaders' summit in Belém, Brazil, ahead of an international climate conference.
Starmer stated that "Britain isn't waiting to act – we're leading the way, as we promised. Clean energy doesn't just mean energy security, so Putin can't put his boot on our throat: it means lower bills for working families in every part of the UK."
Despite these ambitions, critics argue that restricting heat pump subsidies could undermine the UK's climate action plans and put thousands of jobs at risk in the growing green energy sector.