Social energy tariff could have saved 2.2 million households from fuel poverty

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A social energy tariff could have saved 2.2 million households from fuel poverty (Image: Getty Images/iStockphoto)
A social energy tariff could have saved 2.2 million households from fuel poverty (Image: Getty Images/iStockphoto)

Charities have claimed that an energy social tariff could have helped 2.2 million households escape fuel poverty this winter.

The coalition of charities, including Age UK, Scope, Fair by Design, Mencap, MND Association and Sense, warned that the cost of living crisis is putting "huge pressures" on household budgets, with millions struggling to pay their energy bills. Currently, one in eight UK households 12%, or 3.4 million households are experiencing fuel poverty this winter, according to the charities.

SNP MP Marion Fellows plans to table a 10-minute rule bill to discuss social tariffs on February 5. Ahead of this, the coalition has urged the Government to "urgently think again" and fund a targeted energy deal, or social tariff, to significantly reduce energy costs for those most at risk from the cold. The charities are calling for a discounted energy social tariff from 2024-25 to protect the UK's most vulnerable people from fuel poverty.

They suggested that the tariff should be funded directly through Government spending, to ensure "those missing out on it do not have to bear its costs". Age UK charity director Caroline Abrahams said: "In January 2024 about 3.4 million over-60s reported their home was too cold for most, or all of the time. It's not acceptable that they are being forced to live in these conditions."

"We need a permanent solution in the form of an energy social tariff to ensure they never face another winter of unmanageable bills. Energy is a basic essential and it's time we treated it that way and ensure everyone can afford enough of it to stay fit and well, and to live decently."

Shop prices 'are yet to peak and will remain high' as inflation hits new heights eiqkiqhkiqueinvShop prices 'are yet to peak and will remain high' as inflation hits new heights

Maddy Rose, from Mencap, said: "The Government's failure to take action leaves huge numbers of disabled people in fuel distress. Despite higher energy use for mobility, health and sensory needs, nearly 40% of respondents to a Mencap survey had kept the heating off despite being cold, while over a quarter reported not switching the lights on to save money."

"Without an energy social tariff, people with a learning disability will continue to have to make these desperate choices. (The) Government must tackle affordability issues and fulfil their promise to protect the most vulnerable in society, once and for all."

James Taylor, executive director of strategy at disability equality charity Scope, said: "These findings reveal the devastating, real-life consequences of the Government's decision to break its promise to consult on a social tariff. Life costs more when you're disabled. At Scope we're hearing from disabled people who are going days without food, and relying on candles because they can't afford to switch the lights on. This can't wait the Government must act now."

A spokesperson for the Department for Energy Security and Net Zero stated: "A social tariff is about protecting vulnerable people and that's exactly what we are doing by providing significant financial support for those who need it most. We've cut National Insurance for 29 million working people, a tax cut worth £450 for the average worker and our actions have helped to more than halve inflation since last year."

"On top of this we are increasing the National Living Wage to £11.44 this year, and boosting benefit payments for around 5.5 million households by an average of £470 a year. This is alongside direct targeted support for those who continue to need it, including £900 in cost-of-living payments, £150 to those on eligible disability benefits, plus a further £150 Warm Home Discount. Our Energy Price Guarantee also remains in place until April 2024."

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Lawrence Matheson

Save money, Fuel poverty, Energy bills, Age UK

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