A powerful committee has told the UK government its inability to drive greater uptake of electric vehicles is hampering its ability to meet climate pledges.

The call came in the Climate Change Committee’s (CCC)  annual assessment of the government’s progress in reducing emissions. It warned that households are facing higher energy bills because the UK is not electrifying fast enough.

Overall emissions fell 1.8% in 2025. There has been good progress in a range of areas, and the UK is on track to meet the fourth and fifth carbon budgets. Electric vehicle uptake continues to grow, with nearly one in four new car sales now electric. A record amount of new renewable energy was contracted in the latest auction, and peatland restoration has increased by 26%.

Progress in electrification has slowed in other areas including heat pump installations in existing homes – up just 7% this year compared to 56% the year before. The share of electricity in industrial energy use also fell slightly last year. This is leaving people exposed to fossil fuel price shocks and puts later carbon budgets at risk. The government needs a more ambitious plan to electrify these key parts of the economy, including further action to reduce the cost of electricity.

New analysis shows 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 EVs. 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. This rises to around £1,900 for some rural homes.

Nigel Topping CMG, Chair of the Climate Change Committee, explained: “The cost-of-living crisis continues to put pressure on households, with people paying the price of another fossil fuel price shock, so close to the crisis in 2022.

“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. At this moment of political uncertainty, any weakening of current positions risks slowing these transitions, undermining investment and the long-term consistency businesses need.

“This is about more than targets, it’s about cleaner air, energy security and shielding the economy from fossil fuel shocks. Ultimately this is about putting money back into people’s pockets.”

The CCC said only 58% of the required emissions reduction to hit the UK’s 2030 Nationally Determined Contribution target is covered by credible plans, or those with some risk.

The Committee’s recommendations in the report include:

• Make electricity cheaper through measures such as removing remaining policy costs from electricity bills.

• Enable a more rapid transition to EVs, for example by expanding affordable charging infrastructure.

• Accelerate the installation of heat pumps in buildings by cutting costs, removing barriers, and supporting low-income households.

• Deliver on industrial electrification including speeding up grid connections to remove barriers for businesses electrifying operations.

The CCC added: “The UK Government is not moving fast enough to reduce greenhouse gas (GHG) emissions and to protect households and businesses from volatile fossil fuel prices.

“The war in Iran has led to the second global fossil fuel price shock in just four years. In this uncertain geopolitical context, many countries are responding with plans to provide secure, homegrown energy by rapidly reducing dependency on fossil fuels.

“To do this in the UK, the Government needs a more ambitious plan to electrify the UK. This requires continued progress towards low-carbon electricity and an accelerated roll-out of electric vehicles (EVs), heat pumps, and industrial electrification.

“The UK remains among a leading group of countries demonstrating sustained emissions reduction. The Government has set out its proposed level for the Seventh Carbon Budget, in line with our advice – a feasible, ambitious level. There has been positive action on low-carbon electricity over the past year, with record amounts of renewable capacity procured in the latest Contracts for Difference allocation round.

“However, while there have been some steps taken to reduce the costs of electricity, the Government’s plan for electrification lacks ambition. Indicators for some electric technologies are showing worrying signs: while electric car sales are keeping pace with government plans, electric van sales remain off track and the growth in heat pump installations in existing homes slowed significantly last year.

“In October 2025, the UK Government published its Carbon Budget and Growth Delivery Plan (CBGDP), setting out its policies and plans for meeting carbon budgets. This plan projects slower emissions reductions for surface transport and buildings compared to the previous government’s plan. This reflects both slow prior progress in the roll-out of some technologies, as well as areas of reduced policy ambition. For example, the decarbonisation of public sector buildings and reduced support for low-income homes to electrify heating and install insulation.

“There is now a significant gap between the plan’s projected emissions reductions and the UK’s 2030 Nationally Determined Contribution (NDC) under the Paris Agreement, a commitment to reduce emissions by at least 68% compared to 1990 levels. Increasing ambition and achieving the 2030 NDC would put the UK on track to achieve its future carbon budgets and Net Zero by 2050, and send a strong international signal of commitment to delivery.

“The slow pace of electrification is putting the UK’s climate targets at risk and is a missed opportunity to enhance UK energy security in the face of rising threats, leaving the UK exposed to geopolitical shocks. 93% of the UK’s emissions are now outside the electricity supply sector and around three quarters of a typical household’s driving and home energy bills are from the direct use of fossil fuels in cars and gas boilers.”

It concluded: “The rate of global warming is at a record high, and the UK is already experiencing the impacts. Heatwaves have become hotter, longer, and more frequent. In 2026, the highest May temperature on record in the UK was recorded in Greater London.

“Early 2026 was exceptionally wet in parts of the UK, with long unbroken spells of rain leading to widespread flooding. The UK can end its contribution to ongoing global climate change by reaching Net Zero emissions and have a resilient transition that simultaneously considers actions to adapt to rising temperatures.”