Recommendations & Conclusions
13 items
2
Recommendation
First Report - Low emission cars
Accepted
There are a wide range of consumer-facing issues that still need to be addressed to increase the uptake of zero-emission cars. Consumers are not all yet convinced that zero-emission cars are a suitable alternative to petrol and diesel models, with concerns over the affordability of these vehicles, the distance they …
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There are a wide range of consumer-facing issues that still need to be addressed to increase the uptake of zero-emission cars. Consumers are not all yet convinced that zero-emission cars are a suitable alternative to petrol and diesel models, with concerns over the affordability of these vehicles, the distance they can travel on a single charge and the availability and accessibility of charge-points when and where required. The Department for Transport claims that the price gap between ultra- low emission and petrol and diesel cars is rapidly closing and highlights that the running cost of an electric car is lower than that of a petrol or diesel equivalent. However, we are not persuaded that the upfront costs are low enough for many, particularly if, as the Department states, only 13 electric car models cost less than £30,000. There are also other price differentials that need to be addressed, such as the big difference in the cost of charging on the public network compared to charging on a driveway at home and the costs of replacing electric car batteries. The Departments have deliberately sought to make interventions on a UK-wide basis, but take-up has been greatest where there are high levels of traffic, charge-points and affluence. There is a risk that some regions get left behind during this transition, including those in rural areas. 6 Low emission cars Recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy need to have a sufficient understanding of how changes to the vehicle market are impacting, and going to impact, different types of consumers in different parts of the country. Their plan for expanding the number of zero- emission cars on our roads needs to clearly set out how they propose to tackle emerging consumer issues.
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Government response AI summary
The government agrees, stating the 2035 Delivery Plan and forthcoming EV infrastructure strategy (Autumn 2021) address consumer issues and regional impacts. It highlights £1.3 billion investment in charging infrastructure, planned regulations to improve consumer charging experience, and ongoing monitoring of consumer needs.
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HM Treasury
3
Recommendation
First Report - Low emission cars
Accepted
We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. The Department for Transport makes a series of assumptions about the types of journeys people make and how …
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We are not convinced that government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles. The Department for Transport makes a series of assumptions about the types of journeys people make and how they charge their electric car: 99% of all journeys are under 100 miles, the vast majority of electric car charging takes place at home during the night, and people will use public charging infrastructure for the long journeys they take. It has not however made an estimate for how many charge-points the country will need to keep up with the increase in electric cars. The Department regards government’s role for developing the charging infrastructure as stimulating rapid private investment and unblocking market failures. Whilst it has committed to targeting six rapid charge- points at every motorway service station by 2023, and up to 10 to 12 at larger sites, it has not focused much attention on charging for people that do not have off-street parking. Recommendation: The Department for Transport should set out as part of its plan for increasing the use of electric cars, how it intends to address the remaining barriers to expanding the charging network, for example, the availability of chargers where drivers do not have off-street parking.
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Government response AI summary
The government accepts the recommendation, committing to release an EV infrastructure strategy (Autumn 2021) focusing on addressing charging barriers, particularly for drivers without off-street parking. It details £1.3 billion in funding, specific schemes for on-street and local charging, and support for local authorities.
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HM Treasury
4
Recommendation
First Report - Low emission cars
Accepted
The Departments have not yet demonstrated how they are going to encourage industry to maintain proper environmental and social standards throughout their supply and recycling chains as the zero-emission car market grows. There are a range of environmental impacts and costs affecting the growth of zero- emission cars, including the …
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The Departments have not yet demonstrated how they are going to encourage industry to maintain proper environmental and social standards throughout their supply and recycling chains as the zero-emission car market grows. There are a range of environmental impacts and costs affecting the growth of zero- emission cars, including the materials used to make a car and the stability of the associated supply chains, the carbon impact from where a car is manufactured, the emissions and the eventual recycling challenge. The Department for Transport says it has analysed the results of studies examining the lifecycle emissions of electric cars and found that they are about 30% to 40% lower than cars using an internal combustion engine. The Department tells us that manufacturers are focusing on the environmental and social consequences of making electric cars. The Department reports that manufacturers are looking for ways to develop batteries without rare materials and that it is in their business interests not to source products from areas with unreliable or unethical supply chains. As the number of electric cars being produced increases, pressures on the supply of rare materials may increase, and we are concerned that environmental standards could slip. Recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy should set out their approach to encouraging car manufacturers to maintain proper environmental and social standards throughout their supply and recycling chains as zero-emission cars volumes grow. This includes as examples: Low emission cars 7 • publishing information on lifecycle emissions; • details of relevant reporting standards for manufacturers on environmental and social stewardship; and, • future plans to develop the reporting standards.
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Government response AI summary
The government agrees with the recommendation and is working to encourage proper environmental and social standards by funding R&D, supporting UK battery supply chain localisation, participating in the Global Battery Alliance, encouraging OECD guidance, and through FCDO/DIT programmes for responsible sourcing, though it will not …
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HM Treasury
6
Recommendation
First Report - Low emission cars
Accepted
As part of the Ten Point Plan for a Green Industrial Revolution, Government has committed to publishing a delivery plan in 2021 for achieving the phase out of new petrol and diesel cars from 2030, but this has not yet been published.9 In our previous report on achieving net zero, …
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As part of the Ten Point Plan for a Green Industrial Revolution, Government has committed to publishing a delivery plan in 2021 for achieving the phase out of new petrol and diesel cars from 2030, but this has not yet been published.9 In our previous report on achieving net zero, we stressed the importance of publishing key strategies with clear timelines, milestones and decision points.10 Progress in addressing consumer barriers
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Government response AI summary
The government agrees with the recommendation, stating the Department for Transport published its 2035 Delivery Plan on 14 July 2021, and committed to monitoring progress and reviewing by 2025.
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HM Treasury
7
Recommendation
First Report - Low emission cars
Accepted
We were interested in hearing the Departments view on what barriers needed to be overcome to achieve the targets for zero-emission cars. The Department for Transport told us it had undertaken a lot of research into this area, and the two most substantial factors had been price and range anxiety—the …
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We were interested in hearing the Departments view on what barriers needed to be overcome to achieve the targets for zero-emission cars. The Department for Transport told us it had undertaken a lot of research into this area, and the two most substantial factors had been price and range anxiety—the range cars can travel without recharging. Other barriers also exist, such as the appeal and acceptance of electric cars for consumers.11 The Department said it has used the Go Ultra Low publicity campaign to understand and assess what factors are influencing people’s choices towards ultra-low emission cars.12
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Government response AI summary
The government agrees with the recommendation to address consumer barriers, outlining current and planned actions on affordability, charging provision, and public charging experience, including an EV infrastructure strategy for autumn 2021.
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HM Treasury
8
Recommendation
First Report - Low emission cars
Accepted
The Department told us it has used the plug-in car grant, which reduces the purchase cost of qualifying new cars, to address the price barrier.13 The grant has been incrementally scaled back since 2018, and at the time of our evidence session contributed up to £3,000 off the purchase price …
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The Department told us it has used the plug-in car grant, which reduces the purchase cost of qualifying new cars, to address the price barrier.13 The grant has been incrementally scaled back since 2018, and at the time of our evidence session contributed up to £3,000 off the purchase price of an eligible car worth under £50,000. One week after our session this was reduced, so it now contributes up to £2,500 towards eligible cars priced under £35,000.14 We put our concerns that the cost of ultra-low emission cars are still too high for many to the Department. The Department acknowledged that there is still a price difference between electric and petrol and diesel cars, but informed us that 13 electric vehicles now cost below £30,000 with a couple costing closer to £20,000. The Department argued that the price gap is closing “rapidly” and it is now starting to see critical mass which should enable costs to fall.15
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Government response AI summary
The government highlights its existing measures such as plug-in vehicle grants, tax incentives, and support for the second-hand EV market to address affordability, without committing to new actions.
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HM Treasury
11
Recommendation
First Report - Low emission cars
Accepted
The Department for Transport acknowledged range anxiety as a barrier to take-up and is providing investment for infrastructure, specifically focusing on public and rapid charging. However, it told us that because 99% of all journeys are under 100 miles, electric cars are suitable for many journeys. It accepted that there …
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The Department for Transport acknowledged range anxiety as a barrier to take-up and is providing investment for infrastructure, specifically focusing on public and rapid charging. However, it told us that because 99% of all journeys are under 100 miles, electric cars are suitable for many journeys. It accepted that there had been scepticism about the technology for a number of years, including around range, but cited improvements to charging times and suggested that charging on longer journeys will cease to be an issue.21 The government has announced £1.3 billion in the Spending Review to help improve the availability of chargers.22
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Government response AI summary
The government agrees with the recommendation to tackle consumer issues, committing to publish an EV infrastructure strategy in autumn 2021 and detailing investments in charging infrastructure and plans to regulate public charging experience.
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HM Treasury
12
Conclusion
First Report - Low emission cars
Accepted
There is regional variation in the uptake of ultra-low emission cars in the UK, for example high levels of take-up in southern England, and we have been concerned about whether some locations, including rural areas, are missing out on the transition.23 The Department for Transport told us it has not …
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There is regional variation in the uptake of ultra-low emission cars in the UK, for example high levels of take-up in southern England, and we have been concerned about whether some locations, including rural areas, are missing out on the transition.23 The Department for Transport told us it has not targeted specific locations, instead taking a location-neutral approach to investment, and early take-up has been greatest in places with a higher density of traffic, where there are more charge-points and also affluence. Whilst there have been some targeted investments, such as through pilot schemes in places like Bristol and Milton Keynes, the Department told us it wants to make interventions on a UK-wide basis.24 It acknowledged though the need to work with local authorities to understand obstacles in specific areas and provide support so they can provide charging infrastructure.25 Charging infrastructure
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Government response AI summary
The government outlines plans for an EV infrastructure strategy (Autumn 2021) which will address barriers to expanding the charging network, including in rural areas and through collaboration with local authorities to tackle regional variations. It details funding for various charging schemes.
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HM Treasury
14
Conclusion
First Report - Low emission cars
Accepted
We challenged the Department for Transport on how it would ensure the charging infrastructure expanded in step with its plans for a very rapid expansion in the number of electric cars ahead of 2030. The Department told us it has not set targets for the number and type of charging …
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We challenged the Department for Transport on how it would ensure the charging infrastructure expanded in step with its plans for a very rapid expansion in the number of electric cars ahead of 2030. The Department told us it has not set targets for the number and type of charging infrastructure required to support the zero-emission vehicle transition because it expects private investment to drive this.29 The Department did not think it was for them to set the number of charge-points needed and highlighted the number of variables involved as evidence of the complexity of determining what might be needed.30
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Government response AI summary
The government outlines plans for an EV infrastructure strategy (Autumn 2021) to address barriers to expanding the charging network. It details significant funding for various charging schemes and support for local authorities, aiming to ensure infrastructure keeps pace with EV uptake.
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HM Treasury
15
Conclusion
First Report - Low emission cars
Accepted
We asked the Departments about their strategy to avoid “notspots” - areas where the market does not deliver because uptake is insufficient, especially for rural areas. The Department for Transport told us that the majority of electric car owners will charge at home overnight and start journeys with 100% charge.31 …
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We asked the Departments about their strategy to avoid “notspots” - areas where the market does not deliver because uptake is insufficient, especially for rural areas. The Department for Transport told us that the majority of electric car owners will charge at home overnight and start journeys with 100% charge.31 Data from the English Housing Survey indicates that 33% of households in England do not have access to off-street parking, and this increases to 68% for people living in social housing.32 The Department expects charging to be also available at key destinations, such as car parks or supermarkets, in conjunction with the private sector.33
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Government response AI summary
The government outlines plans for an EV infrastructure strategy (Autumn 2021) to address charging barriers, including 'notspots' and the availability of chargers for those without off-street parking. It details funding for on-street and local charging, and support for local authorities.
Read full response →
HM Treasury
17
Conclusion
First Report - Low emission cars
Accepted
The Department for Transport informed us there will now be a “shift” in focus from funding for home charging to on-street and other publicly available local charging. The government has doubled investment for the current year for the on-street residential charge scheme and will be doubling it to £20 million …
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The Department for Transport informed us there will now be a “shift” in focus from funding for home charging to on-street and other publicly available local charging. The government has doubled investment for the current year for the on-street residential charge scheme and will be doubling it to £20 million for next year too. It has committed £90 million to support larger local charging.36 The National Audit Office has however reported that the take-up of funding for local authorities to support on-street residential charge points has previously been poor with almost a third of the allocated funding of £8.5 million not used.37 The Department acknowledged that these programmes tended to be underspent and pointed to capacity and appetite at local authority level, and commercial interests focusing on rapid and destination charging as reasons for the slow take-up.38 We have heard from representative bodies that some local authorities have a lack of in-house 28 Q 13 29 Q 31 30 Q 32 31 Q 35 32 C&AG’s Report, para 2.21 33 Q 35 34 Qq 12, 35 35 Q 12; C&AG’s Report, para 2.24 36 Qq 38, 40 37 C&AG’s Report, para 2.19 38 Q 39 12 Low emission cars expertise impacting on their ability to bid for funding.39 The Department told us that while it is not undertaking direct capacity funding, it is working with local authorities through the Energy Saving Trust to help them understand how to access funding and accelerate charging.40 39 British Parking Association submission page 2 40 Qq 38, 41 Low emission cars 13 2 Wider impacts of the transition Environmental and social impacts
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Government response AI summary
The government outlines plans for an EV infrastructure strategy (Autumn 2021) to address charging barriers, particularly for those without off-street parking. It details £1.3 billion investment, specific funding for on-street and local charging, and support for local authorities to develop charging strategies.
Read full response →
HM Treasury
23
Conclusion
First Report - Low emission cars
Accepted
Another issue to be considered by the Departments is that, as more zero-emission cars enter the market, there will need to be people with the right skills in place to maintain them. The Department for Transport told us that this transition has already started and ensuring training is in place …
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Another issue to be considered by the Departments is that, as more zero-emission cars enter the market, there will need to be people with the right skills in place to maintain them. The Department for Transport told us that this transition has already started and ensuring training is in place is a focus area of the Automotive Council.52
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Government response AI summary
The government outlines ongoing efforts to ensure the workforce has the necessary skills for EV maintenance, including DfT's work with the Institute of the Motor Industry and the automotive sector's participation in the Emerging Skills Project and Green Jobs Taskforce.
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HM Treasury
24
Conclusion
First Report - Low emission cars
Accepted
The Department for Business, Energy & Industrial Strategy, having assessed a number of different scenarios for meeting net zero by 2050, has estimated that electric cars will increase electricity demand by around 20% by 2050 and we wanted to understand the network’s ability to cope.53 The Department explained that the …
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The Department for Business, Energy & Industrial Strategy, having assessed a number of different scenarios for meeting net zero by 2050, has estimated that electric cars will increase electricity demand by around 20% by 2050 and we wanted to understand the network’s ability to cope.53 The Department explained that the increase in demand for electric vehicles is set within the context of an overall doubling of demand for electricity by 2050. The Department is approaching this from the perspective of generation and transmission and distribution networks; it told us mechanisms like the capacity market and contracts for difference are in place to obtain the right energy sources at the right time, and that transmission and distribution network operators are responsible for upgrading the network which they do within controls set by Ofgem.54 Not all changes to the system will push costs up, but currently, the Department estimates net changes to the energy system will add 2% to consumer bills in 2030.55 48 Qq 30, 55 49 Q 55 50 Qq 53–54; Letter from the Department for Transport and Department for Business, Energy & Industrial Strategy to the Committee dated 30 March 2021 51 Qq 19–21; Letter from the Department for Transport and Department for Business, Energy & Industrial Strategy to the Committee dated 30 March 2021 52 Q 30 53 Q 47; C&AG’s Report, para 2.28 54 Q 47 55 Q 48 Low emission cars 15
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Government response AI summary
The government acknowledges the potential increase in electricity demand from EVs and states its Energy White Paper sets out plans to prepare the grid, with network operators incentivised by Ofgem to develop business plans for future funding.
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HM Treasury