Why delaying action on net zero will cost consumers
Abandoning plans will hit those already struggling the hardest
At Citizens Advice we see firsthand how the cost-of-living crisis has devastated household finances — with more people than ever before coming to us for help with crisis support. Over half of the people we give debt advice to are now in a negative budget, meaning their income simply doesn’t cover their basic costs. And with households expected to pay more for their energy bills this winter than they did between January and March 2023, many will be facing even more difficult choices in the months ahead.
Recent reports have suggested that the Prime Minister is considering weakening key policies around the UK’s net zero targets. This could include delaying the transition away from gas and other fossil fuel boilers, and choosing not to implement rules that would mean privately rented homes would need to meet higher energy efficiency standards.
We believe that net zero policies are a central part of the solution to the cost-of-living crisis. Delays and inaction on net zero policies cost consumers money and increase instability — and will have the worst effect on those who are already being hit the hardest.
Poorly insulated properties leave consumers paying higher energy bills for colder homes. Upgrading Great Britain’s inefficient homes to EPC band C would save consumers £24 billion on their energy bills by 2030.
Private renters in England and Wales are on track to waste £1.1bn this year on energy that leaks out of their walls and windows, compared to people living in better insulated homes. A shocking 55% of renters live in homes with an Energy Performance Certificate (EPC) rating lower than band C, meaning they’re poorly insulated and lose heat more quickly. Over a third of households in fuel poverty live in the private rented sector.
And living in an energy inefficient property can lead to a colder, unhealthier home. More than one and a half million children in England live in cold, damp or mouldy private rented homes. Upgrading Great Britain’s 13 million inefficient homes would prevent 670,000 children from developing asthma by 2030.
But unlike homeowners, renters have no power to improve the energy efficiency of their homes. And while Section 21 ‘no-fault’ evictions remain in place, renters who make requests or complaints about the energy efficiency of their homes could risk being evicted.
Private renters are already at the sharp end of the cost-of-living crisis. There’s a growing gap between how much benefit support a private renter can get with their housing payments and levels of rent. We’re now helping record numbers of clients with homelessness issues, driven by private renters.
Amaya’s story
Amaya lives with her partner and 7 week old baby, and rents her home from a private landlord. Their home doesn’t have sufficient insulation so it is very cold and covered in mould. Amaya is struggling to pay her bills and rent while she is on maternity leave, and is concerned about the effect of the mould and cold on her baby and her partner, who have both been experiencing concerning health symptoms. She contacted her letting agent who contacted the landlord weeks ago, but she is still waiting to hear back from her landlord.
It’s vital we have clear minimum energy efficiency standards for homes in the private rented sector, alongside support for landlords and homeowners to make upgrades.
We also need to address the UK’s heavy reliance on gas for heating. Last winter, increased gas prices fuelled the rocketing energy bills that have helped create our current debt crisis. But the UK is still exposed to fluctuating prices. Between 2024 and 2035, a household with a gas boiler would be expected to have paid £5,700 on imported gas. And rural consumers who aren’t connected to the gas grid are currently struggling with high and volatile costs of oil and LPG in an unregulated market. It is not in consumers’ interests to leave them vulnerable to future price shocks.
Clear plans and dates to phase out gas and off-gas grid fossil fuel boilers are a vital part of preparing households and supply chains to move away from fossil fuels in an orderly way. The Government’s own Net Zero review found that bringing the phaseout forward would increase the amount that households save under net zero. Delays and changes to previous pledges will leave consumers confused about what net zero means for them. Supply chains will also be affected by this uncertainty, leading to higher chances of poor outcomes for consumers if installers go bust, and more difficulty finding installers.
As we approach another difficult winter, millions will be living in cold, expensive to heat homes. We want the transition to net zero to work for consumers, bringing down bills and providing more price stability. By the end of this year, delays to implementing minimum energy efficiency standards will have cost renters £2.8 billion in wasted energy since proposals were first consulted on in 2020. As the cost-of-living crisis continues to bite, inaction on net zero is a cost households simply can’t afford.
