# Brexit and austerity still causing ‘major problems’ for economy – Phillipson

By Simon Francis — 2025-11-05

Simon Francis, coordinator at End Fuel Poverty Coalition, said: “Reports in the Guardian suggest the Chancellor may divert funding from its flagship £13.2bn Warm Homes Plan to pay for short term energy bill reductions.

“If confirmed, this would represent a profound misjudgment – sacrificing long-term solutions to fuel poverty for a temporary and politically convenient fix.

“The Warm Homes Plan was set to support vital measures such as improving social housing, expanding heat pump access, launching home upgrade loans and funding council led retrofit schemes.

“Crucially, this £13.2bn was promised in addition to the existing £8.5bn Energy Company Obligation – not as a substitute.

“The End Fuel Poverty Coalition has already urged ministers to reform ECO, following a damning National Audit Office report, and to move its funding to general taxation so help reaches those who need it most.

“But proposals briefed to the media suggest using the Warm Homes Plan finance to replace existing scheme budgets. In practice, this would shrink the UK’s energy efficiency pot by around 40 per cent over five years – directly undermining efforts to cut bills, reduce demand on the grid, and end the misery of living in cold, damp homes.

“Any cut to the Warm Homes Plan would be a short sighted act of betrayal.

“Improving cold homes is one of the most effective and popular ways to permanently reduce energy bills, protect public health and strengthen energy security.

“Ministers should not pull funding from the very programmes that keep people warm and take pressure off the NHS.

“We understand the urgency of tackling energy bills. But the Chancellor – already scarred by last year’s Winter Fuel Payment fiasco – risks repeating history by reaching for the wrong lever.

“Around a quarter to a third of every household energy bill is profit across the energy industry.

“If the Treasury wants to cut bills, it should strengthen the windfall tax and tackle market inefficiencies – not give tax breaks to energy firms or raid the Warm Homes Plan.

“There are smarter, fairer ways to cut bills now and permanently: reform electricity pricing, invest in grid upgrades, fix standing charges and target support to struggling households.

“The Warm Homes Plan is not a piggy bank – it is the foundation of a fair, secure, affordable energy system. Ministers should stick to that promise.

“Energy UK and industry bodies agree: undermining retrofit will only increase costs in the long run.

“If the government wishes to cut energy bills while keeping its promises to households in cold homes, our Coalition stands ready to advise on how to deliver it.”

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