Ministers have ‘broken promise’ over social tariff

The government has been accused of “breaking promises to the most vulnerable in society” after not delivering proposals for an energy social tariff first outlined a year ago.

In last year’s autumn statement Jeremy Hunt set out “a new approach to consumer protection in energy markets”, to apply from April 2024 onwards. He said at that point the government would work with industry and consumer groups to consider the best approach, including options such as a social tariff. The department for energy security and net zero committed to consult on a social tariff this summer but has yet do so.

Scottish Nationalist MP Marion Fellows told a debate in the House of Commons Westminster Hall on Thursday (23 November): “The government may feel comfortable breaking promises to the most vulnerable in society as the quality of their lives diminishes, but I will continue to fight their corner, as will many others.”

Fellows was backed up by backbench Conservative MP Peter Aldous, who warned that work on a social tariff must start now in order it is to be in place next winter, when forecasts suggest energy bills will still be at current, high levels.

He said: “April 2024 is six months away, and I am not sure that that provides us with sufficient time to have an energy tariff in place for 2024-25. I know that there will be other distractions but, for an awful lot of vulnerable people, it is vital that we put that longer-term arrangement in place.

“Time is of the essence. We will not have it in place this winter—no way— but we do need it in place for 2024-25.”

Labour’s shadow energy minister Alan Whitehead said that a long term approach to vulnerable customers energy costs needs to be developed and that an energy  social tariff “should not just be for Christmas—it needs to endure in providing assistance and help for those groups in society.”

Responding for the government, junior energy minister Amanda Solloway acknowledged that energy bills represent a challenge to many low-income and vulnerable households but pointed out that there is as yet no consensus on what a social tariff would actually entail.

She said the government is working “closely” on the issue with Ofgem and suppliers, while providing top-up benefit payments for all low-income households and increasing targeted support for those living in poorly insulated homes through the Warm Homes Discount.