Will Rishi Sunak delaying electric car and gas boiler switch affect me?

The cost of living crisis has seen Rishi Sunak go back on some of the government’s key promises on climate change.

In a Downing Street speech on Wednesday, the prime minister announced a delay in the ban on new petrol and diesel vehicles from 2030 to 2035 and on gas boilers in all new homes from 2025 to 2035.

He also scrapped plans that would have made rental properties more energy efficient.

But with changes still years into the future – and the cost of living crisis rumbling on – will pushing deadlines back make a difference to people’s finances now? Here, Sky News takes a look.

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Petrol and diesel vehicle ban

When he was prime minister in 2020, Boris Johnson committed to banning the sale of any new petrol and diesel cars in the UK from 2030. This is now being pushed back until 2035.

Plans to fine manufacturers for each vehicle that doesn’t comply are also being watered down.

Figures show that although petrol and diesel are still the overwhelming majority – the numbers of plug-in and battery electric vehicles on UK roads have increased – by 45% and 58% respectively.

And in 2023 more electric vehicles were registered than diesel ones for the first time.

This shows a “general trend” away internal combustion engines (ICE) – and towards more sustainable modes of transport already, says Oliver Montague, chief-executive and co-founder of the e-bike engineer company Swytch.

So a change in the timing of the ban is unlikely to have much of an impact.

“Those who have to transition [to EVs] will still have to do so – they just have more time to do it,” he tells Sky News.

“The real shift will be for people who can choose how they want to get around – who aren’t already hooked to one particular mode of transport” – such as a diesel car that needs trading in.

And with the average car journey being only around eight miles – he believes many will opt for e-bikes or cycling, instead of an electric vehicle, meaning the ICE ban will have even less of an impact.

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The RAC also notes the ban only covers new petrol and diesel cars, which means “a lot of people won’t be affected as the majority tend to buy used vehicles”.

Mike Childs, head of science, research and policy at Friends of the Earth, adds that people will still be able to buy non-UK manufactured EVs.

“From a consumer perspective it won’t have a great impact because they can just buy Chinese or German EVs,” he tells Sky News.

“But for British manufacturing it’s a huge backwards step and a massive shot in the foot for jobs.”

No gas boilers in new homes

Plans to stop new build properties being fitted with gas boilers beyond 2025 are being pushed back 10 years.

This doesn’t affect people who already have gas boilers, who won’t need to replace them with alternatives such as heat pumps. As a result, this change is more likely to affect developers than consumers.

Jess Ralston, energy analyst at Energy and Climate Intelligence Unit, says that with a greater upfront cost for heat pumps, we won’t know until the changes come in how much of that will be passed on to buyers.

But she adds: “As time goes on heat pumps are going to be cheaper to buy and run anyway.”

Plans for all new heating systems to be low carbon by 2035, including £450m in household grants, has also been scrapped.

This means more people will have gas boilers for longer, which with prices “two to three times’ pre-crisis levels” will mean people paying more in energy bills, Ms Ralston adds.

But on Wednesday Mr Sunak did announce a 50% increase in the boiler upgrade scheme, which offers people £7,500 to help with the costs of switching from a boiler to a heat pump.

More energy efficient landlords

In 2020, Boris Johnson also pledged that from 2028 all rental properties would have to have an energy efficient rating of C or higher (A being the best and G the worst). But Mr Sunak is scrapping this due to “cost of living challenges”.

Ms Ralston says she “cannot get a single shred of logic” from the decision.

“This would reduce people’s energy bills in the cost of living crisis and increase energy security – things that the government say they want to be doing. It makes no sense whatsoever.”

Mr Childs says it will disproportionately affect people on lower incomes who are more likely to rent their homes.

“This is a massive kick in the teeth to people who live in cold, damp rented homes that are expensive to heat.

“It’s also a massive handout to landlords who can’t be bothered to insulate their properties properly,” he says.

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He adds that despite some drop in prices this year, the cost of oil and gas is increasing again – and will remain volatile for as long as Russia is at war with Ukraine.

“There are more renters than there are landlords, so it makes no sense on votes. It just begs the question of whether the government are being lobbied by wealthy landlords,” Ms Ralston says.

Hydrogen levy

The government was proposing to introduce a levy of around £100 on household energy bills in 2025 – to help pay for low-carbon hydrogen production.

But after many claimed the hydrogen was being used primarily in industry – not people’s homes – ministers have scrapped it.

This is being welcomed by environmental and consumer groups.

Ms Ralston says that heat pumps are far more efficient than hydrogen for heating homes – so the government was right to recognise this wasn’t something the public should pay for.

Mr Childs adds that hydrogen still relies on natural gas – which both homes and transport have been moving away from, so Friends of the Earth has been “against it from the outset”.