Labour’s National Wealth Fund: Signals for Social Investment Grant Makers
Labour’s proposed National Wealth Fund (NWF) will channel billions into green industries, housing retrofit, and regional growth. Here’s what grant makers and blended finance teams should prepare for as the policy develops through 2025.
TL;DR
- Labour’s manifesto commits £7.3bn to a National Wealth Fund targeting green steel, ports, gigafactories, and retrofit.
- Expect partnerships with UK Infrastructure Bank and British Business Bank, with pilots likely in devolved mayoral areas.
- Update your risk registers, partnership MoUs, and Crafty knowledge base to align grant programmes with incoming blended finance.
What is Labour’s National Wealth Fund proposing?
Labour’s 2024 manifesto promises a £7.3bn National Wealth Fund combining public capital with private co-investment to accelerate green industry, energy infrastructure, and retrofit (source: Labour Party Manifesto 2024). An October 2024 HM Treasury transition briefing indicates the fund will prioritise:
- Green steel and industrial decarbonisation
- Port upgrades to support offshore wind
- Gigafactories and battery supply chains
- Energy efficiency and home retrofit schemes
What’s the 2025 timeline and who’s involved?
The fund is expected to launch in draft legislation during Q3 2025 following consultations with the UK Infrastructure Bank (UKIB) and British Business Bank (BBB). Devolved mayors will likely pilot place-based funds, according to the HM Treasury transition note (Oct 2024).
How could grants and social investment strategies shift?
Expect three ripple effects:
- Blended finance demand. Funders may co-invest alongside NWF loans or equity, making grant makers part of capital stacks for retrofit and industrial transition.
- Regional focus. Devolved authorities will broker local partnerships; align with UKSPF strategies to stay relevant.
- Measurement expectations. Funders will require advanced impact dashboards—use the leading indicator dashboard to build shared metrics.
What should grant teams do now?
Update your risk registers and partnership MoUs to reflect co-investment scenarios. Map pipeline opportunities in the Notion Kanban and refresh Crafty’s modular answer library with green industry narratives. Coordinate with social investors to share due diligence frameworks.
Next steps and resources
Download our National Wealth Fund readiness checklist and blended finance MoU annex. Track consultations via the UK Infrastructure Bank and British Business Bank newsrooms.
Action plan
- Identify programme areas that align with NWF priority sectors.
- Engage regional partners to scope blended finance pilots.
- Sync your readiness assets into Crafty for rapid proposal building.