National Energy Action (NEA) published a report on 4 July 2022 calling for a new social tariff in the energy market, arguing that the government must introduce one to lower the cost of bills for low income households1.
The charity defines a social tariff as "a targeted discount energy deal for qualifying low income consumers", describing it as a safety net for eligible households who might be struggling to afford their bills1. It says such a tariff is typically below the price of the cheapest available energy tariff and is targeted at those living in fuel poverty or on a low income1.
NEA frames the case around what it calls a double burden. In its words:
"Low income energy customers face a double burden from the current energy crisis: the rising cost of bills and paying more for their energy due to the poverty premium."
The report's central recommendation is set out directly: "The government must introduce a new social tariff to lower the cost of bills for low income households"1. The publication does not, in the text available, set out the rate of any discount, the qualifying threshold, or a cost to government, and no such figures have been reported1.
Why it matters for households
A social tariff would work differently from the existing Warm Home Discount, which is a one-off credit on an electricity bill, because it would change the unit price a household pays rather than provide a single payment. For a home trying to hold down what it spends on gas and electricity, the difference is between a discount applied once and a lower standing rate applied continuously. The proposals and where they stand are the subject of ongoing debate rather than settled policy.
The argument also bears on tariffs and household energy independence: a tariff set below the cheapest available deal would, on NEA's description, be available only to households that qualify, so the wider market price would be unchanged for everyone else. NEA's point about the poverty premium is that low income customers can pay more for the same energy, which works against the aim of a household being able to control and afford its own supply. The report sits within the charity's wider work on fuel poverty.
What happens next
The report was published on 4 July 20221. No government response, consultation or implementation date is given in the text available, and no next steps have been reported1.