Recommendation 11

We questioned whether the Department was also monitoring and collecting data on the impacts of net zero policies on individuals and groups with different characteristics.38 The Department pointed to HM Treasury analysis of household exposure to net zero ‘abatement’ costs by income deciles, but also described why it does not consider income to be the defining feature of how net zero policies impact an individual. Rather, it considers a range of relevant factors that all contribute to determining the overall impact on an individual, including the type of housing stock people live in, how they commute and what sort of industry they work in, how their children get to school, and whether they have family overseas.39 The Department told us it has commissioned research, but admitted this was a complex area where its understanding was limited and would become more sophisticated over time.40 In written evidence, The Energy Systems Catapult told us that voices of all parts of society must be heard and the impacts on different parts of society must be managed fairly.41 Core Cities UK, an advocacy group of large regional cities outside Greater London suggested to us that financial disincentives could be attached to activities associated with higher emissions, while ensuring these did not disproportionately impact vulnerable or low-income consumers.42 The Department told us that for now it is focused on making sure each programme, such as its programme on insulation, does not leave anyone behind; and that it has a plan for industries in transition, such as the automotive industry as it pivots towards producing electric vehicles.43 32 Energy Systems Catapult, pages 2–3 33 Q 24; Net Zero Strategy, chapter 3, page 143 34 Q 24 35 Committee of Public Accounts, Low emission cars, First Report of Session 2021–22, HC 186, 19 May 2021 36 Confederation of Passenger Transport, page 3 37 Q 11 38 Q 84 39 Qq 84–85, 105–106; HM Treasury, Net Zero Review Final Report, October 2021, para 3.11–3.