Under their recommendations, overall costs of meeting the emissions cuts would be 0.2% of GDP – cheaper than their estimates when they set out advice in 2020 for emissions cuts in the mid-2030s – and the committee estimates public spending would never exceed 2% of annual expenditure.
But the upfront costs of fitting houses with low-carbon heat pumps instead of boilers are a “sizeable” part of the costs of the UK’s net zero shift and people will need support to make the switch, the Climate Change Committee warned.
The committee said its modelling shows that, by mid-century, households would save around £700 a year on heating bills and another £700 on motoring costs, with a switch to electric heat pumps for home heating and electric vehicles (EVs).
Upfront investment, most of which would come from the private sector, would deliver net savings for the economy by 2040 compared to continuing with use fossil fuels at current levels, the committee said.
People’s current cars and boilers do not have to be replaced earlier than they would need to be naturally, and roll-out rates would be similar to that previously been achieved in the UK for the mass take-up of mobile phones, fridges and internet connections, the committee said.
