The Government responded to petition 624795, "Introduce an unmetered monthly tariff for energy for the elderly and disabled", on 11 May 2023, stating that it is considering potential approaches to consumer energy protection after April 2024 and intends to consult on options in summer 20231.
In its response, the Government said officials were considering potential options, including discounted tariffs, for a new approach to consumer protection in energy markets applying from April 2024 as part of wider retail market reforms, and that it was working with disability organisations to assess the need for specific support for vulnerable people1.
The petition response followed earlier statements in the House of Commons. On 18 April 2023 the Secretary of State for Energy Security and Net Zero said: "We do think that things like a social tariff could be very helpful…" when the Energy Price Guarantee ends in April 20241. On 18 January 2023 the Prime Minister told the Commons that "…we are also consulting on the best thing to do [on energy bills] going forward, including options… such as a social tariff, as part of our wider reforms of the retail energy market"1.
The End Fuel Poverty Coalition, which maintains a timeline of tariff reform campaigning, records that the Government appeared to rule out a social tariff consultation in July 20231. On 12 July 2023 the Deputy Prime Minister told the House of Commons: "As my right hon. Friend the Chancellor set out in his autumn statement, we are exploring the best approach to consumer protection from April 2024 as part of wider retail market reforms"1. In October 2023, over 140 organisations wrote to the Government urging it not to abandon plans to consult on tariff reform, and in September 2023 the House of Commons Energy Security and Net Zero Committee came out in favour of introducing a social tariff for specific groups of consumers1.
Proposals put to Government include a social tariff discounting energy bills by 50% for eligible households, set 50% below the Energy Price Guarantee where that cap operates or 50% below the average tariff rate if markets have returned to normal1. Eligible households under that proposal include those on means-tested benefits, disability benefit, Carer's Allowance, and in theory anyone below 60% median household income, with automatic inclusion and universal application across suppliers1. The proposal allows a £500 million ring-fenced flexible support fund, asks government to finance the tariff directly from Treasury spending to avoid consumer cross-subsidies, and calculates the most likely annual cost as between £5.6bn and £9.4bn, with a lowest cost expectation of £5.6bn for 2024-25 assuming a typical bill of £1,000 a year1.
A separate proposal, the National Energy Guarantee, would use a Rising Block Tariff with two or three bands, giving 50% of average essential consumption free for every household, calculated at 1,050 units of electricity and 2,700 units of gas1. It includes three additional allowances, exempting households on means-tested benefits from premium rates and providing an extra free block per child per household and per disabled resident, at a cost of roughly £2.4bn1.
Why it matters for households
The petition response concerns how protection for households that struggle to pay for energy might be structured once the Energy Price Guarantee ends in April 20241. The proposals described would change how a bill is calculated rather than the rate paid on every unit: a social tariff would halve the bill for households meeting eligibility criteria, while a Rising Block Tariff would make a set quantity of units free and charge premium rates for very high use1. Both approaches depend on automatic enrolment, so that eligible households do not have to switch supplier to receive support1. The social tariff proposals and where they stand remain the subject of consultation commitments rather than settled policy, and the timeline records that the Government appeared to rule out a consultation in July 20231. For a household's energy independence, the practical question is whether support arrives automatically through the existing supplier relationship or requires an application, and whether it sits alongside protections such as the Warm Home Discount rather than replacing them1. The energy price cap sets the default rates that any discount would be measured against, and tariffs and household energy independence covers how tariff design affects what a home pays.
What happens next
The Government's stated intention was to consult on options in summer 2023, with a new approach to consumer protection applying from April 20241. The timeline records that the Government appeared to rule out a social tariff consultation in July 2023, that over 140 organisations wrote to it in October 2023 urging it not to abandon plans to consult, and that the Chancellor confirmed the end of the Energy Price Guarantee in March 2024 without including tariff reform in the Spring Budget1. In April 2024 Ofgem and the Government both launched reviews of the Energy Bills Price Cap, and in June 2024 polling was published suggesting that just 11% of the public oppose the idea of a social tariff1.
Sources1 cited
- What next for energy bills? - End Fuel Poverty Coalition, endfuelpoverty.org.uk