The Welsh Government has allocated an additional £17m to home energy efficiency schemes following a review of its Warm Homes Programme.
Announced by housing minister Siân Gwenllian in July, the funding comes from existing budgets within her portfolio and will support improvements to private and social housing, alongside trials of new delivery models.
Nest receives an extra £5m, taking its budget to £37m for 2026-27. The demand-led scheme supports low-income households living in cold, damp homes.
A further £8m increases the Optimised Retrofit Programme’s budget to £106.75m. This is the programme’s final year, with lessons from improvements to social housing intended to inform future policy and investment.
The remaining £4m will support alternative approaches involving local partners across Wales. Gwenllian said details would follow, with an emphasis on testing models and learning from their results.
These pilots will complement Tai Clyd Caerdydd, a £3m project delivered with Cardiff Council in Splott, Adamsdown and Fairwater. It will test neighbourhood-level retrofit across different housing tenures. In July, the minister said applications would open in September, with eligible residents contacted directly.
Further work will examine the cost-effectiveness of interventions and where Welsh funding can deliver the greatest impact. Ministers will also explore how Wales can benefit from UK Government funding streams.
For social landlords, the investment comes alongside a transition beyond the Optimised Retrofit Programme. The review’s findings and pilot results will help shape the next phase of support for warmer homes, lower bills and reduced emissions.
Explore Andy Sutton’s deep dive on the retrofit scheme in Wales in the next issue of WHQ, due in October. Subscribe now.
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