More on our calls for better means testing of heat pump subsidies and leaning more on regulations to drive demand here

www.resolutionfoundation.org/publications...

May be other factors but a) SW is bigger than the other regions b) the farms there are smaller so more of them

One of the only books ever to be belatedly endorsed by the Resolution Foundation in our 'reads of the summer' 2025

www.resolutionfoundation.org/comment/bigg...

Frustratingly, the Gov didn't give us a breakdown of emissions by sector. That makes it very hard to see how this Gov is approaching the tough trade offs between faster/ slower decarbonisation across sectors. As delivering net zero gets harder for households, a bit more transparency would be nice!

There's some hints on homes policy we'll be hearing more about soon - in line with its "incentives based" approach, big subsidy schemes are here to stay, savings from regulations are weaker than 2023 and cheaper electricity for heat pumps isn't dead yet (more detail here bsky.app/profile/mash...)

There's some chunky targets behind that - not least a clear sign that ambition on heat pumps hasn't dimmed. This Gov wants two million heat pumps to be installed between 2026 and 2030, an average of 400k a year. Last year we managed a quarter of that. As we've set out before, that's a big challenge

The key thing about the next phase of net zero is that we're moving to decarbonising sectors that households will feel - heating and transport.

This new plan doesn't change that. Over half of policy driven emissions savings in the fifth carbon budget (2028-2032) will be in these sectors.

With CCC estimating that EVs will soon be cheaper than conventional vehicles, and demand already on track for our regulations, it's hard to see why we need the extra subsidies announced recently - esp. as they'll be regressive, with most new cars bought by richer households

We think Government can play a role to ensure the savings from consumer flex are big and shared fairly - such as by making those with lots to contribute do their bit.

Reforming the price cap (which was never meant for a flexible world) is one option

www.resolutionfoundation.org/publications...

One of the key decisions here is how much of a role there is for Government in promoting flex, so happy that DESNZ are consulting on that.

www.gov.uk/government/c...

But not much detail yet on what it means for consumers, and how the savings will be shared. Reform in the retail market is critical here, so good to see that DESNZ/ Ofgem are working out the options (more from them in March 2026)

A significant majority of electricity is used by industry. The actual split depends on a whole host of factors that are challenging to predict, but a cheaper electricity system certainly won't just benefit households