LONDON, 28 October 2026 — UK100, the only network of ambitious strategic and local authorities led by all political parties working together to tackle climate change, welcomed the Budget’s commitment to “devolution, not delegation”. The commitment includes assigning income tax to all mayors from 2028, greater business rates retention, a £1.5 billion borrowing facility for mayoral strategic authorities, and £285 million for Good Growth Funds.

UK100 called on the Chancellor yesterday to protect the Warm Homes Plan, put it in local hands and fund the people who deliver it. The Budget cuts £1 billion of capital grant from the Plan as the Department for Energy Security and Net Zero contributes to the Defence Investment Plan. The government says the majority of funding for low-income households and social housing, delivered by mayors and councils, is protected.

Reports recently revealed that councils’ existing warm homes schemes, from York to Sheffield, Lewisham and Cambridge, are being paused, oversubscribed or rationed by need. Local authorities bid for £1.7 billion of Warm Homes: Local Grant funding but were granted £500 million to 2028.

Responding to the Budget which announces a £1b cut to the capital budget for the Warm Homes Plan, Christopher Hammond, UK100 Chief Executive, says:

“This Budget makes real progress on honouring pledges to expand devolution. Local leaders across the political spectrum will inevitably welcome more control over the money raised in their areas. The Treasury is right to release genuine control over their resources and give the certainty to plan beyond annual funding cycles. We want to see this logic apply to all levels of local government.”

“Investment in the Warm Homes Plan is a down payment on energy security and affordability in the medium term. Any cut is disappointing. It leaves us exposed to fossil fuel imports and volatile international energy markets. Although most of the money has been safeguarded, the warm homes funds need to be allocated quickly to regions and schemes — rather than sitting as a tempting target for future budget raids.

"Councils have shown the demand is there, with projects oversubscribed from York to Lewisham. While we want to see the government make good on its original commitment, the key is now to make every pound count. We will be making the case, alongside our members, to put the Plan in local hands, with multi-year funding that reaches every postcode, and build the local capacity to speed up the process of turning that money into more comfortable, energy secure homes."

ENDS

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More information: Liam Ward, UK100, liam.ward@uk100.org

Christopher Hammond is available for interview, and UK100 can put journalists in touch with local leaders delivering Warm Homes schemes.

Notes to editors

About the survey

DESNZ Public Attitudes Tracker, Summer 2026, published 27 October 2026. Fieldwork 7 July to 12 August 2026; 3,242 UK adults aged 16 and over (Verian, push-to-web). Figures are as published by DESNZ; income figures refer to annual personal income.

About the Budget

Budget 2026, paragraph 4.36: £1 billion capital grant saving from the Warm Homes Plan, with the majority of funding for low-income households and social housing, delivered by mayors and councils, protected.

E3G’s analysis of the Budget details how The Warm Homes Plan’s capital funding (worth £10bn) has been cut by £1bn, with the breakdown as follows:

• The cuts have mainly landed on the BUS to the tune of £0.72bn
• The low income schemes (social & local grants) have had a cut worth £180m from 2028 onwards, And,
• £100m of heat networks spend cut from this financial year

Paragraphs 4.58 to 4.68: Fiscal Devolution Roadmap, Good Growth Funds, the mayoral strategic authority borrowing facility and 10 new devolution agreements.

About the funding figures

Councils bid for £1.7 billion of Warm Homes: Local Grant funding and were granted £500 million to 2028 (i Paper, September 2026). Local schemes: UK100 release, 12 October 2026.

UK100's three tests

For the devolved Warm Homes Plan: protect the funding at the Budget, reach every postcode, and invest in the people who deliver it (UK100, 29 September 2026).

About UK100

UK100 is the only network of ambitious strategic and local authorities led by all political parties working together to tackle climate change. We help local leaders overcome challenges and turn innovation into solutions that work everywhere. We build the case for the powers needed to make change happen. From cities to villages, we help communities across the UK create thriving places powered by clean energy, with fresh air to breathe, warm homes to live in, and a healthy natural environment.

UK100.org

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