Calls for “social tariff” for energy bills when support ends

In an open letter from 95 organisations, including National Energy Action, Age UK, Scope and Fair by Design, they said this targeted support should be automatically made available to those who need it including those on means tested benefits, disability benefits and carer’s allowance.  

This would be alongside those still struggling with their bills but who are missing out on support from the welfare system.  

The open letter, published today (17 January), also outlines how it could give the government the opportunity to remove unfair differentials between different geographies and payment types that currently exist in the market for low income and vulnerable households.  

Age UK’s charity director Caroline Abrahams said: “Imagine having to choose between staying warm, feeding your family, or powering essential medical equipment. This is the reality for increasing numbers of older and disabled households across the country.   

“Older people are struggling to get by now, and that’s before another energy price increase comes their way in a few months’ time.  

“Many will simply not be able to cope with further price rises and we’re extremely concerned their health and wellbeing will pay the price. There needs to be much more protection for those who have no other means of paying such extortionate energy costs.  

“The government must introduce a social tariff for the energy market whilst prices are so high, and ensure we never face a crisis like this again.” 

At present, the government’s energy price guarantee scheme provides financial support to limit average household bills up to annualised figure of £2,500. This is due to increase to £3,000 from April, with this cap lasting a year.  

Alongside the open letter to the government, National Energy Action and Energy Action Scotland have released their latest Fuel Poverty Monitor, which confirmed households living on the lowest incomes, in the least energy efficient homes and on pre-payment meters are being hardest hit by energy price increases.  

Responding the report’s findings, its author Matt Copeland – head of policy and public affairs at National Energy Action – said: “For our Fuel Poverty Monitor, we spoke to over a hundred organisations across the UK, directly with our clients and polled the general public. From this it’s clear that the energy crisis is having a profound impact on the poorest and most vulnerable households in society. 

“Whether households are heating just one room for just a few hours a week, or rationing the use of their medical equipment, the results are completely unacceptable in modern day society. So far, the UK government has offered sticking plaster solutions to the crisis. 

“What is really needed is structural change to the energy market. We were told time and again that a social tariff is what is needed.  

“Today we come together with hundreds of other organisations to say just that. The UK government must urgently prioritise work to implement a social tariff as soon as possible.”