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Organisations line up to back energy tariff reform

More than 140 charities, organisations and MPs have signed an open letter urging the Prime Minister to consult on and deliver an energy social tariff before winter.

A newspaper on a kitchen table beside a model of rules and regulation

More than 140 charities, organisations and MPs signed an open letter to the Prime Minister calling on the government to support vulnerable households with their energy bills, the End Fuel Poverty Coalition said on 1 September 2023. The letter urges ministers to make good on a repeated commitment to consult on a social tariff for energy, which the coalition says has not been launched.

Polling carried out for National Energy Action by YouGov found that a third of British adults expect to struggle to afford their heating bills this winter if the government does not offer financial help with energy bills1. The coalition said the government had previously committed on repeated occasions to consult on future approaches to consumer protections, including a social tariff, but that no consultation had been launched1.

Adam Scorer, chief executive of National Energy Action, said:

"We have to face reality. Even without a price rise, which now looks likely in January, the crisis is deepening, and it demands a proper response from government now."
National Energy Action, via the End Fuel Poverty Coalition1

Caroline Abrahams, charity director of Age UK, said older people struggling to heat their homes had waited only to learn there would be no social tariff consultation before the autumn, and that estimates show high energy prices are here to stay for at least the next two winters1. Louise Rubin, head of policy at Scope, said disabled people who rely on energy for equipment cannot cut back, and that the charity has heard from people who have gone without food for days1. Frazer Scott, chief executive of Energy Action Scotland, said millions of households are approaching winter with significant debt and that poor-quality, cold and damp housing is worsening the situation1.

A Department for Energy Security and Net Zero spokesperson told the Press Association the government "continues to keep all options under review for those most in need"1. The End Fuel Poverty Coalition responded that MPs on the Energy Select Committee, All Party Parliamentary Groups, charities, campaigners, the public and energy firms all back reform, and that only Rishi Sunak and his Cabinet do not1.

Why it matters for households

A social tariff is a discounted energy rate for households on low incomes or with essential medical needs. The proposals and where they stand are set out in the site's guide to a social tariff for energy, and how it differs from existing support is covered in energy social tariff vs Warm Home Discount. For a household, the practical question is whether help arrives as a discount on the unit rate or standing charge, as a one-off payment, or not at all. The letter's signatories argue the current energy price cap leaves bills at relative highs, and that targeted support this winter plus a longer-term tariff would change what a home pays for each unit it uses. How tariff design shapes a household's control over its own bills is discussed in tariffs and household energy independence.

What happens next

No consultation date has been announced. The coalition said there would be no social tariff consultation before the autumn1. National Energy Action's Adam Scorer said a price rise now looks likely in January1. The government has not set out any winter financial support package, and no further dates have been reported.

Sources1 cited
  1. Government isolated as organisations line up to back energy tariff reform, endfuelpoverty.org.uk