Delays to climate targets will cost renters and drivers more money, government advisers conclude
Prime Minister Rishi Sunak’s recent delay to key climate targets will actually cost many households more, rather than saving them money as he claimed, his own climate advisers have concluded.
In a major speech last month, Mr Sunak pushed back the end of new petrol and diesel car sales from 2030 to 2035, and scrapped a plan to make landlords improve the energy efficiency of their properties, which would have saved renters money on bills.
He also exempted some households from replacing gas boilers with a greener alternative, as part of a “pragmatic” rethink on the cost of the UK’s net zero climate policies.
Amid scepticism over the prime minister’s claims he was saving homes thousands of pounds, the Climate Change Committee (CCC), ran the numbers on the impact on people’s pockets.
It found renters will have to pay more for energy in less efficient homes, while drivers who move to electric cars later rather than sooner will face higher costs through their vehicle’s lifetime.
Professor Piers Forster, chair of the CCC, said: “Our position as a global leader on climate has come under renewed scrutiny following the prime minister’s speech.
“We urge the government to restate strong British leadership on climate change in the crucial period before the next climate summit, COP28 in Dubai.”
Mr Sunak said the government remained committed to net zero by 2050, which means cutting emissions as much as possible and offsetting the rest.
The CCC, which had in June already warned the UK was moving too slowly to meet its climate targets, said the prime minister had failed to provide any evidence to prove the new changes were compatible.
“We remain concerned about the likelihood of achieving the UK’s future targets,” Prof Forster added.
Whereas the government’s policy had been to phase out all new gas boilers in buildings by 2035 and replace them with heat pumps or other low-carbon methods, Mr Sunak’s speech in September announced that 20% of households would be exempt, to save steep costs on households that couldn’t afford it.
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Professor Rob Gross, director of UK Energy Research Centre, told Sky News: “Overall the CCC response makes clear that the commitments made by government created a self-fulfilling prophecy of failure – ambitious targets, inadequate delivery policy, and ultimately the conclusion that policies needed to be abandoned.
“If the government knew for years that some people would be negatively impacted then they could have made provision to protect those people rather than roll-back on targets.”
In its analysis, the CCC welcomed some other recent government climate policies, such as the new mandate on Zero Emissions Vehicles (ZEV), which should see 80% of new cars sold with zero emissions by 2030.
It said the ZEV mandate will likely offset Mr Sunak’s delay to selling fossil fuel cars, but warned the change could weaken business and consumer confidence in the industry.
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Government set ‘unrealistic target’
In response to the delayed ban on petrol and diesel cars, manufacturer Ford said business “needs three things from the UK government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three”.
Richard Hebditch, UK director of transport and environment, echoed the CCC’s fears about a hit to business confidence, saying: “We need to give not just vehicle manufacturers, but critical material suppliers and charging infrastructure installers, absolute confidence in what we’re aiming for and when.”
This would yield more investment, better charging and cheaper options for consumers, ultimately “making the switch to electric vehicles a complete no-brainer for people,” he said.
John Flesher, deputy director of the Conservative Environment Network, said: “The prime minister is right that we need to bring people with us on the road to net zero.
“Expecting too much from households could undermine the country’s current consensus on the need to act on climate change.”
In the same week Labour made climate action a key part of its pitch to voters, Mr Flesher added: “Conservatives cannot afford to lose their grip on the net zero narrative and must present a compelling, market-based route to net zero.”
As the issue that remains popular with voters, the PM should “harness the party’s environmental reputation to help build a popular and positive narrative going into the next election and not allow Labour to dominate this issue”, Mr Flesher said.
Royal Mail is to be allowed to scrap Saturday second-class stamp deliveries, under a series of reforms proposed by the communications regulator.
From 28 July, Royal Mail will also be allowed to deliver second-class letters on alternate weekdays, Ofcom said.
The post will still be delivered within three working days of collection from Monday to Friday.
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The proposals had already been raised by Ofcom after a consultation was announced in 2024, and the scale back was proposed early this year.
Royal Mail had repeatedly failed to meet the so-called universal service obligation to deliver post within set periods of time.
Those delivery targets are now being revised downwards.
Rather than having to have 93% of first-class mail delivered the next day, 90% will be legally allowed.
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The sale of Royal Mail was approved in December
The target for second-class mail deliveries will be lowered from 98.5% to arrive within three working days to 95%.
A review of stamp prices has also been announced by Ofcom amid concerns over affordability, with a consultation set to be launched next year.
It’s good news for Royal Mail and its new owner, the Czech billionaire Daniel Kretinsky. Ofcom estimates the changes will bring savings of between £250m and £425m.
A welcome change?
Unsurprisingly, the company welcomed the announcement.
“It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service,” said Martin Seidenberg, the group chief executive of Royal Mail’s parent company, International Distribution Services.
“It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today.”
Citizens Advice, however, doubted whether services would improve as a result of the changes.
“Today, Ofcom missed a major opportunity to bring about meaningful change,” said Tom MacInnes, the director of policy at Citizens Advice.
“Pushing ahead with plans to slash services and relax delivery targets in the name of savings won’t automatically make letter deliveries more reliable or improve standards.”
Acknowledging long delays “where letters have taken weeks to arrive”, Ofcom said it set Royal Mail new enforceable targets so 99% of mail has to be delivered no more than two days late.
Changing habits
Less than a third of letters are sent now than 20 years ago, and it is forecast to fall to about a fifth of the letters previously sent.
According to Ofcom research, people want reliability and affordability more than speedy delivery.
Royal Mail has been loss-making in recent years as revenues fell.
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In response to Ofcom’s changes, a government spokesperson said: “The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth. With the way people use postal services having changed, it’s right the regulator has looked at this.
“We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK”.
Ofcom said it has told Royal Mail to hold regular meetings with consumer bodies and industry groups to hear their experiences implementing the changes.
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