Under their recommendations, overall costs of meeting the emissions cuts would be 0.2 per cent 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 per cent of annual expenditure.
Climate advisers say households would save hundreds of pounds a year on driving and energy bills by shifting away from “volatile” fossil fuels - but admit, it would come with upfront costs.
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.
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.
The committee pointed to findings from a citizens’ panel it convened which found people “in principle” support the move towards cleaner heating and insulation but have concerns about a range of issues including upfront costs, hassle, noise, reliability and how it would work for renters.
