Scotland has approved an in‑year budget revision that rebadges the “Net Zero” portfolio line as “Climate Action” and moves domestic energy‑efficiency funding into the Housing portfolio. The Budget (Scotland) Act 2025 Amendment Regulations were made on 2 December 2025 and take effect on 3 December.

Beyond the name change, the revision adjusts cash authorisations and line‑by‑line totals. The Scottish Administration’s overall cash authorisation is now £60,482,300,149, with updated figures for the Scottish Parliamentary Corporate Body and Audit Scotland. Within Schedule 1, a new Housing purpose-8A-is created to hold home energy‑efficiency spending. The direct‑funded bodies schedule is also updated.

What shifts, specifically? The new Housing purpose 8A carries £1,007,585,986 in resources plus £90,000,000 in accruing resources, covering building standards, housing subsidies, homelessness activity, the Scottish Fuel Poverty Advisory Panel, and crucially, funding for domestic energy efficiency, insulation and refurbishment. The former Net Zero line-now retitled “Climate Action”-drops those home energy items and is set at £568,939,850.

Why it matters for people, not just spreadsheets: fuel bills remain punishing. Official statistics from the Scottish House Condition Survey show 34% of households-around 861,000-were in fuel poverty in 2023, with 19.4% in extreme fuel poverty and a median fuel‑poverty gap of £1,250. Pulling energy‑efficiency spend into Housing aligns it with the services that already reach those households.

There is also a safety piece. The new Housing line explicitly includes assessment and remediation of buildings within scope of the Cladding Remediation Programme and development of the Cladding Assurance Register. The Register went live on 6 January 2025 under the Housing (Cladding Remediation) (Scotland) Act 2024, with ministers due to report to Parliament from summer 2026. Positioning cladding alongside energy upgrades could speed combined works in blocks where residents face both fire‑risk and heat‑loss issues.

For households asking “what changes for me?”, support routes stay familiar but sit under a different ministerial banner. Home Energy Scotland’s Grant and Loan scheme continues to offer up to £7,500 for clean heating and up to £7,500 for insulation, with an extra £1,500 rural uplift on each-help that can meaningfully cut bills if paired with good advice and quality installation.

Low‑income and vulnerable households should keep an eye on Warmer Homes Scotland delivery and their council’s locally run Area Based Schemes. The Scottish Government says ABS investment is maintained at £64 million in 2025/26, targeting streets and estates with high fuel‑poverty rates-often where fabric upgrades make the quickest difference.

Social landlords will see practical implications straight away. With home‑energy spend now in Housing, pipeline planning can line up fabric and heat system upgrades with capital works and tenancy support. The Social Housing Net Zero Heat Fund’s most recent application checkpoint closed in May, but the guidance signals grant support of up to 60% for clean‑heat CAPEX and up to 50% for fabric‑first projects when windows reopen-so it is worth having projects “investment‑grade” ready.

Local authorities developing heat networks can still tap the Heat Network Support Unit for feasibility, business‑case and strategic help, tied to Local Heat and Energy Efficiency Strategies. Early engagement matters: HNSU support operates on a first‑come basis and can cover most pre‑capital costs, with clear expectations on fair work and community engagement.

The politics behind the relabel is important but so are the outcomes. Scotland has already accepted that its 2030 target is out of reach; the Climate Change Committee says robust delivery plans are urgently needed to stay on track for 2045. Rebadging “Net Zero” as “Climate Action” will be judged on whether homes get warmer, bills fall, and emissions from buildings drop year on year.

What to watch next: ministers must prove this portfolio shift speeds delivery on the ground-fewer cold, damp flats; faster cladding fixes; more homes reaching EPC C or better; and a clear, funded path for landlords and councils. For readers, the practical route remains straightforward: start with Home Energy Scotland for impartial advice, check your council’s ABS window, and if you live in a multi‑owner block with cladding concerns, ask about a Single Building Assessment and the Cladding Assurance Register entry.