Lower-income households to struggle with Net Zero transition

A recent report reveals that the shift toward Net Zero emissions will impact lower-income households the most, particularly readers of The Sun newspaper. Civil servants acknowledge that many people in these households may struggle to adjust their lifestyles, such as changing their heating, cars, and other habits to align with Net Zero goals. The report highlights that many families already face financial strain due to a combination of weak wage growth, high inflation, and rising interest rates. This situation raises concerns about whether low-income households can sacrifice their regular spending to invest in greener options. Prepared by the Business Department’s Economy & Strategic Analysis Team, the report states that government support will be essential to help disadvantaged groups cope with these challenges. The analysis points out that the financial impact of the Net Zero transition will likely be negative overall, particularly for public finances. In the current economic context, with increasing inequality and financing pressures, the need for substantial public sector investment becomes even more pressing. Conservative leader Kemi Badenoch has echoed concerns about the feasibility of achieving Net Zero by 2050 without severe economic consequences.