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Ministers urged to announce winter support measures now

More industry voices have joined Utility Week’s calls for the government to act now on energy bill support this coming winter, with organisations such as Energy UK and Citizens Advice issuing a plea to ministers.

Since April, Utility Week’s Action on Bills Campaign has been urging the government to act before the summer recess to prepare for the coming winter.

The campaign calls on ministers to set out a clear plan for targeted support on energy bills for vulnerable customers to be put out to consultation, as well as a revised Energy Bills Support Scheme to be brought in for next winter while a more targeted approach is being designed.

In an announcement ahead of parliament going into recess, Energy UK, Citizens Advice, Fair By Design, MoneySavingExpert and National Energy Action are also pushing the government to publish its planned consultation on a possible social tariff and other options for customer support, with a view that it will now be “very challenging” for it to deliver on its pledge to introduce better targeted support by next April.

Despite prices falling to just over £2,000 in July, the groups warn that millions of consumers will still struggle to pay their bills this winter, with some estimates projecting they will be at least £600 higher than they were at the start of 2022.

With serious concerns about customers falling further into debt, even as prices stabilise, the organisations say any support package must be targeted, funded fairly and work with existing measures such as the Warm Home Discount.

They further stress that targeted help, as opposed to the £400 Energy Bills Support Scheme and the Energy Price Guarantee, will take more time to implement, necessitating the government to act now rather than waiting until the autumn.

Dhara Vyas, Energy UK’s deputy chief executive, said: “Energy suppliers, consumer groups and charities are all concerned that millions of households are still going to need help to pay for the energy they will need to use this winter.

“The government stepped up last year with support that was a lifeline for many customers but introducing it at very short notice necessitated a blanket approach. This would be hugely expensive to repeat.

“Planning targeted support for those who need it the most cannot wait until winter is nearly upon us. A more permanent, long-term solution to ensure all customers can afford their bills is also required – and if that means putting in place a social tariff by next April, then time is already running very short.”

Citizens Advice figures show that the average spend on gas and electricity for the people it helps with debt advice has gone up by 73% since 2019 — from £112 per month to £194 – the equivalent of 13% of their income.

The charity calculates that providing targeted energy bill support for the average debt client could help them end each month with £13.18 to spare, instead of £23.40 out of pocket – a difference of £438.96 over 12 months. For those who are struggling more, they say, the gain from targeted support would be even higher.

Clare Moriarty, chief executive of Citizens Advice, said: “Energy affordability is a long-term problem that needs a long-term solution. A social tariff would protect millions of people from spending excessive amounts on their bills.

“High energy costs have left too many people choosing between heating and eating. Uncertainty over future high prices only adds to the stress and worry felt in households across the country.

“This policy helps make energy bills more affordable in the years ahead and supports the shift to warmer, safer homes that are ready for the net zero transition.”

Adam Scorer, chief executive of the charity National Energy Action, which has been one of the industry’s most vocal proponents of a social tariff, said: “Last winter was bleak but this winter is set to be even worse. Our figures show 6.6 million UK households are in fuel poverty – an increase of over 2.5 million since the energy crisis began.

“That’s millions more people going without hot food, warm showers and rationing their heating or turning it off altogether. A social tariff for the most vulnerable is vital to help those who cannot stay warm, safe and healthy at home.”

Tackling fuel poverty will be discussed in more detail at Utility Week’s upcoming Consumer Vulnerability and Debt Conference on 7 November in Birmingham. To find out more and book your place, click here.