The government has laid important groundwork via the Clean Power 2030 Action Plan to enable the energy system to tackle the challenges ahead. But inevitably, decarbonising homes and businesses will require individuals to make changes to their properties and to adjust their behaviours. Changes like these can be a big ask for a population without a lot of spare money, and can be devastating for households with no real room for manoeuvre in their budgets. The detail around what support will be in place to help consumers make those individual shifts with confidence is not there yet. And what support will be in place for those consumers who may find it harder than others?
Supporting those who need the most help
Policies intended to drive the transition may impact different groups of consumers in different ways. Reforms like levy rebalancing, for example, could make adopting low carbon-technologies more appealing by shifting policy costs from electricity to gas bills. But this carries risks for lower-income households who may not have the upfront funds to invest in things like heat pumps, leaving them facing higher gas costs for longer. At the same time, as major reforms like market-wide half-hourly settlement take effect in the coming years, more time-of-use tariffs - where the energy price charged by the supplier varies based on the consumer’s time of use - will become available. For those who can adjust their energy usage and invest in low-carbon technology, this could lead to lower energy bills, but there will be groups who are unable to do so. For example, people with disabilities may require consistent energy use for medical equipment, whilst people who work irregular shifts may not be able to benefit from off-peak pricing. These groups may need more support to ensure they’re not left behind.
Even without all these changes, lots of people are already struggling. At Citizens Advice, energy affordability is still one of the top cost of living issues for which people come to us for help: in January 2025 alone we helped over 20,000 people. A just transition must address both the existing challenges faced by consumers as well as put in place enablers for a low-carbon future.
What are the solutions?
The government’s recent decision to expand the Warm Home Discount is a welcome step in the right direction, and will make a big difference to millions of households. But our latest research shows there are 6.7 million people in households which are in energy debt. The level of support provided has not kept pace with rising energy bills, so the Warm Home Discount needs to be more generous, particularly for those with the highest energy needs such as those living in poorly insulated, inefficient homes and households with children.
The government has committed to improving data matching, which would help ensure households receive support based on their energy needs and the efficiency of their homes, and it is important this is brought in as quickly as possible. Better data matching would also enable more precise targeting of energy efficiency measures, ensuring support reaches those who need it most.
Equally, as more consumers adopt low-carbon technologies in their households, the gaps in consumer protections are becoming clearer and more concerning. The existing patchwork of protections is difficult for consumers to navigate when things go wrong, and this risks undermining consumer confidence in the clean energy transition. The recent news that the government will be overhauling the existing protections is welcome, and Citizens Advice is calling for a new advice and consumer protection framework that will help ensure consumers have the protections and support they need to navigate the market.
Across the country, advisors in our network of local Citizens Advice charities are on the frontline of the net zero transition, helping clients to navigate today’s energy affordability crisis and grapple with emerging technologies and products. A just transition must address both challenges. Local authorities have a vital role to play here, from delivering place-based solutions such as retrofit schemes to working with local organisations to provide trusted advice and support in their communities. While the government has been clear on plans to decarbonise the electricity sector, communities need the same level of clarity on what will be available to individuals and businesses to help them decarbonise. Just as the government has sought to provide certainty for investors in the power system, they will need to ensure the Warm Homes Plan puts the right enablers in place to ensure consumers feel confident and supported in making necessary changes to their homes and businesses.
Empowering local communities and authorities to take an active role in the energy transition is essential. Seeking out opportunities to engage people in Local Area Energy Plans is one way to ensure communities have a say and are brought along in their area’s energy transition. And in some areas, the English Devolution Bill could have significant implications, potentially giving local leaders more control over energy and climate initiatives. As changes unfold, local authorities and local Citizens Advice offices will need to take advantage of opportunities to work together and ensure support reaches households most at risk of falling behind.
