15 January 2024 , 14:55
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Plans to launch an energy social tariff which would help low income households with energy costs have reportedly been "quietly shelved" by the Government.
The Tory Government first pledged to consider energy social tariffs - which are cheaper tariffs for certain groups - in 2022, and this was doubled down on by Prime Minister Rishi Sunak and Energy Secretary Grant Schapps last year.
However, Government sources have indicated that social tariffs are "no longer a priority" and that ministers were looking into other ways to help those struggling with energy costs the I reports. When pressed on the issue of energy social tariffs in the Commons last week, Rishi Sunak did not "reiterate a previous commitment to the consultation."
The move comes despite calls from charities, organisations and energy companies themselves calling for the introduction of a social tariff for energy. End Fuel Poverty Coalition co-ordinator Simon Francis said the decision to "abandon plans" for energy bill reform would be a "slap in the face to British households.
Daniel Portis, the deputy director of Energy UK, which represents providers, told the i publication that the group was “concerned” ministers were “underestimating the scale of the issue” on the number of households unable to pay energy bills. The energy regulator Ofgem revealed last year that the level of dent amongst energy customers had risen to an estimated £3billion - although industry experts believe the debt is "significantly" higher than Ofgem's statistics.
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Louise Rubin, head of policy and campaigns at charity Scope, since the promise for a social tariff was made, “almost a third of disabled people have been pushed into debt” adding that the “crisis has not gone away.”
She said: "We’re hearing from disabled people who can’t afford to eat, are using candles instead of switching lights on and rationing how much they use equipment like powered wheelchairs. Thousands of disabled people, charities and campaigners have been calling for this since the start of this crisis because we know it’ll make an enormous difference to disabled people’s lives.
Rocio Concha, director of policy and advocacy at the consumer group Which? said that it was "very concerning" to hear that plans for a social tariff were potentially scrapped. She explained: "Energy debt has risen hugely over the crisis and prices are predicted to remain high until the end of the decade. Lower income households with unavoidably higher usage - such as families with young children - are more likely to be left in the cold this winter and beyond.
"The Government needs to set out its plans to deal with the issue. A properly targeted social tariff would ensure more affordable energy bills for those who need it most."
A Department for Energy Security and Net Zero spokesperson told the I: “We recognise the cost of living challenges families are facing, which is why we are spending £104billion supporting households with bills.
“Energy prices are falling, and our energy price guarantee remains in place to protect people until April next year. We’re also continuing to support the most vulnerable, with three million households expected to benefit from the £150 warm home discount and eight million households expected to receive a £900 cost of living payment. We continue to keep all options under review for those most in need.”