Government plan to support investment, green jobs and warmer homes

The government has published its new Carbon Budget and Growth Delivery Plan, setting out how it intends to meet its legal emissions targets while securing investment in clean energy and delivering tangible benefits to households and businesses.

The plan outlines a broad programme of action aimed at decarbonising the UK economy, with key measures targeting energy, housing and transport. It also affirms the UK’s long-term policy direction under the 2008 Climate Change Act, which has provided a framework for billions of pounds of private investment since its introduction.

One of the centrepieces of the plan is a commitment to upgrade five million homes through the Warm Homes Plan. This includes measures to improve insulation, install rooftop solar and facilitate the uptake of low-carbon heating technologies such as heat pumps.

The scheme aims to cut household energy bills and raise efficiency standards, with the government confirming that there will be no mandatory boiler ban. Instead, policy will focus on incentives to make cleaner technologies the natural consumer choice.

The government also reaffirmed its support for delivering energy-efficient, low-carbon buildings across the UK as part of its wider climate and economic strategy. The net zero economy is currently growing three times faster than the wider economy, and over 400,000 new clean energy jobs are expected to be created by 2030.

Built environment sectors are highlighted as key contributors to emissions reduction and economic opportunity. In particular, the government’s approach includes:

* Incentives to reduce reliance on volatile fossil fuel prices through domestic renewable energy and nuclear projects.

* A continued push to decarbonise construction and housing stock, building on existing standards and funding support for retrofitting.

* Investment in clean infrastructure such as low-carbon transport and supply chains for heat and energy systems.

The plan also confirms that the UK’s net zero framework is helping to attract international capital. Over £50 billion in private investment has been announced since July 2024, with a clean energy workforce expected to exceed 800,000 by the end of the decade.

Secretary of State Ed Miliband said the plan was

designed to deliver immediate improvements to people’s lives while strengthening long-term economic resilience. “This is about delivering better lives for people today – from warmer homes and cleaner air to cheaper transport and increased access to nature,” he said.

Industry groups welcomed the clarity the plan provides. The Aldersgate Group, UK Green Building Council and Confederation of British Industry all underlined the need for consistent policy direction to unlock further investment and accelerate delivery, particularly in housing and infrastructure.

A government-backed investor prospectus has also been published alongside the plan to guide capital markets and institutional investors.

The Carbon Budget and Growth Delivery Plan covers emissions targets through to 2037 and is designed to comply with the UK’s fourth, fifth and sixth carbon budgets under the Climate Change Act. Further detail is expected in future strategies covering industrial decarbonisation and low-carbon heat.