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Social tariff plans for energy bills quietly scrapped by government

SOCIAL tariff plans to help vulnerable people with their energy bills have been quietly shelved by the government in a “slap in the face” to households.

In January last year, Prime Minister Rishi Sunak reiterated government promises first made in 2022 that it would consider a lower energy tariff for struggling households.

Then energy secretary Grant Shapps told MPs in April that a social tariff “could be very helpful” and that the government was looking into it.

But government sources have indicated that it is no longer a priority, the i newspaper reported today, with ministers looking at alternative plans such as through additional payments.

End Fuel Poverty Coalition co-ordinator Simon Francis said: “As energy bills continue to be double what they were in winter 2020-21, the government’s decision to abandon plans for energy bill reform is a slap in the face to British households.

“Industry, campaigners and many MPs across the political divide agree that reform of tariffs to help the most vulnerable is necessary.

“It seems that it is only the Prime Minister and the Cabinet who don’t see the problem and the need for action.”

Louise Rubin, head of policy and campaigns at charity Scope, said that in the year since the promise was made, “almost a third of disabled people have been pushed into debt” and said the “crisis has not gone away.”

“We’re hearing from disabled people who can’t afford to eat, are using candles instead of switching lights on and rationing how much they use equipment like powered wheelchairs,” she told i.

“Thousands of disabled people, charities and campaigners have been calling for this since the start of this crisis because we know it’ll make an enormous difference to disabled people’s lives.

“The government needs to keep its promise.”

Daniel Portis, deputy director of Energy UK, which represents providers, said the group is concerned ministers are underestimating the scale of the issue regarding the number of households unable to pay energy bills.

Ofgem revealed last year that debt levels for energy customers are estimated to have risen to nearly £3 billion.

But Mr Portis said that industry experts suggest the debt is “significantly higher than Ofgem’s headline statistics.”

A government spokesperson said that they were keeping “all options under review” and are currently spending £104bn to support households with bills.

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by Ceren Sagir Social affairs reporter