Age UK polling published on 1 January 2023 found that a quarter (24 per cent) of over-60s are living in homes which are colder than they would like them to be, rising to 27 per cent for older people with a disability1. The findings were released alongside a letter to the Chancellor signed by 100 charities and non-profit organisations across the UK, calling for more targeted support in the form of a social tariff for the energy market1.
A social energy tariff is a discounted, targeted tariff aimed at those in greatest need to ensure they are able to live in their homes comfortably1. The letter calls for targeted support to be made available to those who need it most, including those on means-tested benefits, disability benefits and Carer's Allowance, as well as those missing out on welfare support but still struggling with their bills1.
The same day, National Energy Action and Energy Action Scotland released their latest Fuel Poverty Monitor, an annual analysis of how the energy crisis has impacted fuel-poor households1. The Monitor confirms that households living on the lowest incomes, in the least efficient homes and on pre-payment meters are being hardest hit by energy price increases1. It recommends the Government urgently consults on a mandatory social tariff to begin in April 2024, or sooner if practicable, to provide affordable energy for low-income and vulnerable households, and that the targeting of such a scheme goes beyond just those households that receive means-tested benefits1.
"It recommends the Government urgently consults on a mandatory social tariff to begin in April 2024, or sooner if practicable"
Caroline Abrahams, Charity Director at Age UK, said older people are struggling to get by now, before another energy price increase in a few months' time, and that many will simply not be able to cope with further price rises1. Matt Copeland, head of policy and public affairs at National Energy Action and author of the Fuel Poverty Monitor, said the UK Government has so far offered sticking plaster solutions and that structural change to the energy market is needed1. James Taylor, Director of Strategy at disability equality charity Scope, said the charity's helpline has been inundated with calls from disabled people whose bills have doubled or even quadrupled in a year1.
Other plans for an "Energy For All" allowance, giving all households access to a free band of energy, are also being developed by End Fuel Poverty Coalition members1.
Why it matters for households
The letter and the Monitor both point to a gap that opens in April 2023, when the Government's Energy Bills Support Scheme comes to an end and the support provided by the Energy Price Guarantee is reduced1. For households already limiting how much they heat, that combination removes two layers of support at once. The proposals set out in the letter would change how energy bills and energy independence work for the households they reach, by discounting the unit rate rather than paying a flat credit. That distinction is the subject of the comparison between an energy social tariff and the Warm Home Discount, and the full set of proposals and where they stand is set out in the guide to a social tariff for energy.
The polling suggests the pressure is concentrated among older people and home energy users, particularly those with a disability, and among households on pre-payment meters, who the Monitor identifies as among the hardest hit1. For a household, the practical question is whether support arrives as a discount on the rate paid for each unit, which scales with use, or as a fixed sum, which does not. The Monitor's recommendation that targeting go beyond means-tested benefits reflects the position of households that receive no welfare support but still struggle with bills1.
What happens next
The Energy Bills Support Scheme ends in April 2023, and support under the Energy Price Guarantee is reduced from the same point1. The letter and the Fuel Poverty Monitor both call for the Government to consult urgently on a mandatory social tariff to begin in April 2024, or sooner if practicable1. No government response to the letter or the Monitor is reported1.