Climate Change Committee publishes annual progress assessment warning faster electrification would cut household bills

The Climate Change Committee published its annual assessment of the government's progress in reducing emissions on 24 June 2026, warning that households are paying more for energy because the UK is not electrifying fast enough¹. Overall emissions fell 1.8% in 2025, and the UK is on track to meet the fourth and fifth carbon budgets¹. The same day, Parliament agreed the level of the Seventh Carbon Budget, setting a legally binding target of around 87% emissions reduction in 2038 to 2042².

Progress has been uneven. Electric vehicle uptake continues to grow, with nearly one in four new car sales now electric, and a record amount of new renewable energy was contracted in the latest auction¹. But heat pump installations in existing homes rose just 7% this year, against 56% the year before, and the share of electricity in industrial energy use fell slightly¹. Carbon Brief reported that the slowdown in heat pump installations was largely due to the closure of the ECO scheme³. The CCC says only 58% of the emissions reduction required to hit the UK's 2030 Nationally Determined Contribution target is covered by credible plans, or those with some risk¹. Carbon Brief put the shortfall at 64 million tonnes of carbon dioxide equivalent, with 17% of required cuts not addressed by any government plans at all³.

New analysis in the report sets out the bill savings from combining technologies. A typical household could save around £1,200 a year today by combining an EV, a heat pump, solar panels and a time-of-use tariff, rising to around £1,900 for some rural homes¹. Carbon Brief reported that this figure includes the upfront costs of installing a heat pump and solar panels, annualised, and that the analysis does not consider home batteries because of modelling limitations³. The same outlet reported that the average home would save at least £660 a year by switching from a petrol car to an EV³.

The CCC also reported that since the start of the Iran war, households with gas boilers and petrol cars have seen energy bills rise almost four times more than those with heat pumps and EVs¹.

"The transition to clean electricity is not happening fast enough. Government support to accelerate the shift to electric vehicles and heat pumps is critical, not only to keep our climate targets within reach but to unlock savings."

The CCC's priority recommendations include making electricity cheaper by removing remaining policy costs from electricity bills, expanding affordable charging infrastructure, cutting the cost of heat pumps and supporting low-income households, and speeding up grid connections for industrial electrification¹. Energy Saving Trust said a key recommendation is to remove policy costs from electricity bills to lower heat pump running costs, and that further detail is needed on the future of the ECO scheme, green finance and rebalancing electricity costs relative to gas⁴. ChargeUK, responding to the report, said the government's cost of public EV charging review is an opportunity to reduce costs, and that a planned review should consider VAT and standing charge arrangements for public charging⁵.

Why it matters for households

The report frames electrification as a question of exposure as much as emissions. Homes running on gas and petrol carry the full effect of fossil fuel price shocks, while those already using a heat pump and an EV carry less of it¹. The CCC's figures put a number on the gap: around £1,200 a year for a typical household combining an EV, a heat pump, solar panels and a time-of-use tariff, and around £1,900 for some rural homes¹. Carbon Brief reported that the £1,200 figure accounts for the annualised upfront cost of the heat pump and solar panels, so it is a net figure rather than running costs alone³. The CCC's analysis does not cover home batteries³.

The policy levers named in the report sit mostly outside a household's control. Electricity prices carry policy costs that the CCC wants removed, and the cost of public charging is under review¹. Heat pump costs, barriers to installation and support for low-income households are all named as areas needing action¹. Energy Saving Trust said the case for upgrading homes and accelerating the rollout of low carbon technologies has never been stronger, and pointed to the Warm Homes Plan as central to that progress⁴.

What happens next

The government has not yet responded to the CCC's progress report, according to a Commons Library briefing dated 10 July 2026, but has said it will publish a new delivery plan setting out how it will meet the reductions required for the seventh carbon budget⁶. That briefing records that the government laid secondary legislation before Parliament in June 2026 and that CB7 was agreed in both Houses, committing the UK to emissions reductions of 87% from 1990 levels⁶. The ZEV mandate is due to be reviewed in 2026⁶. ChargeUK said it is essential that this year's review of the mandate does not lead to further concessions⁵.

Sources6 cited

1. Faster electrification would cut UK household bills, say climate advisers - Climate Change Committee, theccc.org.uk
2. Response to Parliament passing the Seventh Carbon Budget into law - Climate Change Committee, theccc.org.uk
3. CCC: Faster electrification of UK will ‘put money back into people’s pockets’ - Carbon Brief, carbonbrief.org
4. 2026 Climate Change Committee's Progress Report - Energy Saving Trust, energysavingtrust.org.uk
5. ChargeUK responds to the CCC's progress report, chargeuk.org
6. [](https://researchbriefings.files.parliament.uk/documents/CBP-9888/CBP-9888.pdf), researchbriefings.files.parliament.uk