The Centre for Research into Energy Demand Solutions (CREDS) published a report on 13 October 2022 setting out a policy package it says would reduce fuel and transport poverty while cutting carbon emissions. The 32-page report, "Green uplift: how a net zero economy can reduce fuel and transport poverty", was written by Stuart Dossett and produced with Green Alliance1.
The report states that decarbonisation can produce positive environmental and social outcomes over the longer term, and that the economic impacts are more favourable than allowing climate change to continue unchecked. It cites Cambridge Econometrics work for CREDS on the distributional effects of net zero pathways, and warns that some groups are particularly vulnerable to poorly designed policies, including people on low incomes already in fuel or transport poverty. It names households with children, people with health or mobility difficulties, people from minority ethnic groups and those in rural locations as further at risk1.
Its recommendations cover monitoring, electrification, electricity pricing and household support. On monitoring, it calls for better measurement of transport poverty, including a standardised definition across the UK. On electrification, it proposes a zero emissions vehicle sales mandate on car manufacturers that quickly translates into a growing used EV market, a heat pump sales mandate akin to that ZEV mandate to drive down upfront costs, and financial support for heat pump installation in households vulnerable to fuel poverty. It also calls for reducing the cost of electricity and its cost relative to gas, to guarantee savings from electrifying heating and travel1.
The report notes that the government had responded to the cost of living crisis through the Energy Price Guarantee and the bus fare cap in England, and argues that alongside these emergency measures it is more important than ever to reduce the structural susceptibility of those most at risk over the longer term1.
| Recommendation | Detail given |
|---|---|
| Energy efficiency standards | Put proposed minimum standards into law for the domestic private rented sector and social housing, reaching EPC band C by 2028 |
| Household efficiency support | Financial and non-financial support for households in fuel poverty to install energy efficiency measures |
| Non-car travel | Expand public transport routes, reduce end user cost, integrate public transport, micro-mobility, walking and cycling networks |
The report says the recommended actions are complementary and will maximise benefits if implemented together, and that some would have short term benefits if implemented early1.
Why it matters for households
The report's central claim for homes is that electrification can lower running costs, especially the switch to electric vehicles, where it says running costs are substantially lower than for petrol and diesel cars. It adds that this benefit may not be universal, which is why it proposes sharing the access to and benefits of electrifying heating and travel fairly across households at different income levels1.
For a household, the package touches the three levers that shape energy independence: the fabric of the home, through EPC band C standards and efficiency support; the heating system, through heat pump costs and installation support; and the running cost of that system, through the price of electricity relative to gas. The report frames the electricity price relationship as the guarantee that electrification of heating and travel actually delivers savings1. The fuel poverty definitions used in each nation differ, and the report's call for a standardised definition applies to transport poverty rather than fuel poverty. Households weighing efficiency work against bill reduction or a low-carbon heating system can read our guide to setting a target for your home.
What happens next
The report sets out recommendations rather than a timetable of commitments. The only dated target in it is EPC band C by 2028 for the domestic private rented sector and social housing, described as putting proposed minimum standards into law. No implementation dates for the ZEV mandate, the heat pump mandate or electricity price reform are given in the report1.