On 20 September 2023 the Prime Minister announced exemptions and delays to phase-out dates for fossil-fuelled cars and boilers, and a decision not to regulate for improved energy efficiency of rented homes1. The Climate Change Committee (CCC), which published its assessment of the announcements on 12 October 2023, said the changes included "the delayed phase-out date for fossil-fuel cars and vans (2030 to 2035)", "the delayed phase-out date for oil and LPG boilers (2026 to 2035)", "the exemption of 20% of homes on the 2035 gas boiler phase out" and "scrapping EPC C by 2028 for private rented homes"1.
The CCC said its assessment "remains that the UK is unlikely to meet its NDC to reduce emissions by 68% between 1990 and 2030"1. It found no material difference at economy-wide level in the share of required 2030 emissions covered by plans it judges insufficient, which fell from 18% in its June assessment to 17%; without the 20 September announcements, it said, that figure would have improved to 14%1. The share of required 2030 reductions covered by credible plans rose from 25% to 28%, which the CCC attributed to confirmation of the Zero Emission Vehicle mandate, offset in part by potential damage to consumer and investor confidence in electric vehicles1.
On buildings, the CCC said the 20% exemption from the gas boiler phase-out "will have an impact on emissions all the way out to 2050, making Net Zero considerably harder to achieve"1. It also said the heat pump grant increase from £5,000 to £7,500 "has not been accompanied by a larger budget and will, therefore, serve fewer homes"1.
On the private rented sector, the Energy and Climate Intelligence Unit (ECIU) estimated that around 2.8 million privately rented homes may not receive energy efficiency improvements2. It said government estimates of the energy savings from the policy indicated it "would have saved tenants of upgraded properties £255 per year under 'normal' (e.g. pre-crisis) energy prices", with a larger effect of about £325 at the price cap then current1. ECIU put the figure at over £400m in total, or £140 per home in gas bills, had the standards already been in place2. The CCC said the cancellation of regulations on the private rented sector "will lead to higher household energy bills"1.
| Measure | Before | After |
|---|---|---|
| New petrol and diesel car and van sales phase-out | 2030 | 20351 |
| Oil and LPG boiler phase-out | 2026 | 20351 |
| Gas boiler phase-out | 2035 | 2035, with 20% of homes exempt1 |
| EPC C for private rented homes | 2028 | Scrapped1 |
| Boiler Upgrade Scheme grant | £5,000 | £7,500, no larger budget1 |
"The Prime Minister's 20 th September announcements included exemptions / delays to phase-out dates for fossil-fuelled cars and boilers, and a decision not to regulate for improved energy efficiency of rented homes."
Why it matters for households
For a household, the practical effect runs through bills and through what a home is required to be. The CCC states that cancelling the private rented sector regulations will lead to higher household energy bills, and cites government estimates that the policy would have saved tenants of upgraded properties £255 a year at pre-crisis prices, or about £325 at the price cap then in force1. ECIU's analysis puts the missed saving at over £400m in total, or £140 per home, had the standards already applied2. Minimum Energy Efficiency Standards for the private rented sector have been in place since April 2018, when new private tenancies had to meet EPC band E, extended so that all private tenancies had to meet band E from April 2020; a 2021 consultation proposed EPC band C for new tenancies by 2025 and all tenancies by 20282.
For owner occupiers, the boiler phase-out dates and the 20% exemption shape what heating systems can be installed and when, and the CCC says the exemption creates "widespread uncertainty for consumers and supply chains"1. The grant increase to £7,500 without a larger budget means the same money reaches fewer homes1. On motoring, the CCC says electric vehicles "will be significantly cheaper than petrol and diesel vehicles to own and operate over their lifetimes", so any undermining of their roll-out will ultimately increase costs1. The CCC also notes that the Zero Emission Vehicle mandate, implemented in legislation, will ensure 80% of new cars sold by 2030 are zero-emission1.
What happens next
The CCC said it plans to publish its advice on the Seventh Carbon Budget in early 20251. It urged the government to restate strong British leadership on climate change before COP28 in Dubai1. The CCC also said recent announcements were not accompanied by estimates of their effect on emissions, and urged greater transparency when policies change1. No further dates for the delayed phase-outs or for any replacement rented homes standard have been reported.