Cold homes are costing lives. Labour's warm homes plan must deliver on its promise

Winter is just around the corner and, as the UK continues to grapple with the cost of living crisis, cold homes remain a persistent and deeply damaging health issue.

The government’s decision to ease cuts to winter fuel payments after public and political pressure shows the scale of concern. But one-off measures cannot address the underlying structural drivers of fuel poverty. That is why the forthcoming warm homes plan must deliver on its promise.

The scale of the challenge is stark. More than eight million households spent more than 10% of their income on energy in 2024. Despite a fall in Great Britain’s price cap this summer, energy bills remain 43% higher than 2021-22 levels, and energy debt has risen to record levels as millions struggle to keep up with their bills. When National Energy Action and YouGov polled British adults in January, half (49%) reported that they are likely to ration energy in the spring, while only 42% said they could comfortably afford their heating last winter without cutting back elsewhere.

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This isn’t just an affordability issue – it is a health issue. The Health Foundation has found that problem debt can harm both physical and mental health: through stress; reduced income for essentials and products that promote good health; and increased reliance on health-harming coping behaviours. Nearly half (46%) of those in problem debt report their health as ‘less than good’, compared to 23% of those not in debt.

While fuel poverty is often framed as an energy policy challenge, it also represents a public health crisis and should be a critical part of the government’s health mission. Cold homes are estimated to cost the NHS more than £1 billion each year because they exacerbate physical health issues such as respiratory and cardiovascular problems, and can cause, and exacerbate, mental health issues. The NHS 10-year plan recognises the health risks of damp and mould in people’s homes, and proposed updates to the Decent Homes Standard strengthen obligations on landlords to address damp and mould.

The experience of National Energy Action’s clients, typically low-income households who are struggling to pay their energy bills, paints a sobering picture. Around two-thirds (68%) of the people that National Energy Action support have a pre-existing health condition that is exacerbated by the cold.

One client in Wiltshire told National Energy Action that living in a cold home affected his health and caused a great deal of anxiety. His asthma was also worsened by the damp and mould in his home. ‘We never had the heating on… we used hot water bottles.’

The £13.2bn warm homes plan is a golden opportunity for the government to scale up this kind of impact. In its 2024 manifesto, the Labour Party pledged that the plan, to be executed this parliament, would ‘slash’ fuel poverty and improve the warmth of homes for those most in need. HM Treasury has confirmed it will include funding for insulation, heat pumps and solar panels, and estimates resulting bill savings of hundreds of pounds each year for hundreds of thousands, if not millions, of households across the UK.

The warm homes plan must not fall short of these promises.

Resolution Foundation research found that the warm homes plan has the potential to save low-income households in the least efficient homes (EPC D or worse) around £230 a year – equivalent to 14% of their energy costs, or 2% of disposable income.

Critically, any work carried out under the Warm Homes Plan must be completed to a high standard. With the recent National Audit Office report highlighting a worrying number of failed installations under the government’s Energy Company Obligation scheme, the Warm Homes Plan must ensure that households genuinely benefit from energy efficiency measures, with installations that deliver the promised warmth and savings. People should have confidence that work in their homes will be done properly – and that, where problems occur, they will be resolved quickly and at no cost to them. Without that assurance, many will simply choose not to have insulation installed. Getting delivery right will be vital to building public trust and ensuring the plan achieves its intended outcomes.

However, on its own it will not be enough to meet the UK government’s legal fuel poverty obligations by 2030, or to deliver wider ambitions such as lowering carbon emissions through switching to clean heating systems, boosting economic growth and creating a fairer energy market. Achieving these outcomes requires a joined up, cross-government approach that includes action on energy efficiency, provides bill support and achieves fairer energy market design, leading to clean, affordable heat.

That means not only focusing on overall affordability, but also on how costs are distributed – through measures such as a well-designed social tariff and a fairer balance between standing charges and unit rates. The government’s forthcoming long-term housing strategy, which is expected to include significant new investment in social and affordable homes, is a vital chance to align these priorities.

Delivering that coherent strategy will take time, but getting the warm homes plan right is an essential first step. This is not a ‘nice to have’. It is a necessity. Cold homes are the source of significant health inequalities that must be addressed. By getting the warm homes plan right, the government can cut NHS costs, reduce carbon emissions, and most importantly, ensure that no one has to suffer through another winter in the cold.

Andria Mastroianni is a policy officer in the healthy lives team at The Health Foundation, specialising in developing policy and analysis aimed at reducing health inequalities in the UK. Matt Copeland is head of policy at National Energy Action, the national fuel poverty charity.

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