Charities say an energy social tariff would have lifted 2.2 million households out of fuel poverty this winter

New analysis by Age UK has found that 2.2 million households would not have been in fuel poverty this winter, a reduction of around 65%, had the Government implemented an energy social tariff¹. The figures were published on 2 February 2024 by Fair By Design, which is part of a coalition of charities also including Age UK, Scope, Mencap, MND Association and Sense¹.

Around one in eight (12%) UK households, or 3.4 million, are experiencing fuel poverty this winter, according to the analysis¹. Among the lowest fifth of equivalised after-tax household income, around two in five (38%), or 2.2 million households, are in fuel poverty; a social tariff would have lifted 1.3 million of them out, a reduction of around 60%¹. Around one in six (16%) older households, or 1.9 million, are in fuel poverty, and a social tariff would have lifted 1.3 million of them out, a reduction of around 65%¹. Around one in seven (15%) households with someone with a disability or long-term health condition, or 2.1 million, are in fuel poverty, and a social tariff would have lifted 1.4 million of them out, a reduction of around 66%¹.

An energy social tariff is described as a discounted energy deal for those on lower incomes and with specific needs¹. The charities say it must automatically enrol eligible households, be mandatory for all suppliers, and complement existing consumer protections¹. Eligibility should include recipients of income-related means-tested benefits, disability benefits and Carer's Allowance, with households in relative poverty or just above the poverty line identified through new data matching or proxy criteria also eligible¹. The coalition calls for implementation from 2024/25 and for the tariff to be directly funded through Government spending, so that households missing out do not bear its costs¹.

Social tariffs have previously existed in the energy sector but were phased out from 2011, when the Government introduced the Warm Home Discount¹. The charities say the Government has repeatedly promised to consult on an energy social tariff but has not followed through¹. Caroline Abrahams CBE, Charity Director at Age UK, said that in January 2024 about 3.4 million over 60s reported their home was too cold for most, or all, of the time¹.

Why it matters for households

The analysis puts a figure on what a discounted energy deal would have meant for households on the lowest incomes, older households and households with someone with a disability or long-term health condition this winter¹. It also sets out who the charities say should qualify, which would extend beyond the current Warm Home Discount arrangements to recipients of income-related means-tested benefits, disability benefits and Carer's Allowance¹. The coalition says the tariff would need to be funded through Government spending rather than recovered from other billpayers¹. No social tariff is in place for 2024/25; the proposal is a call on the Government, not a confirmed policy¹.

What happens next

The charities call for a discounted energy social tariff to be implemented from 2024/25¹. Marion Fellows MP was due to introduce a 10-Minute Rule Motion in Parliament requiring the Government to consult on an energy social tariff¹. The Government's response to the analysis has not been reported¹.