With energy prices skyrocketing and government subsidies set to expire the following year, 95 charities and nonprofits have written to Jeremy Hunt requesting the implementation of a “social energy tariff” in the UK. 

The proposed tariff would provide low-income households with cheaper gas and electricity, which would be subsidised by taxation or by distributing the cost of the subsidy among wealthier billpayers.

The letter, signed by National Energy Action, Age UK, and Scope, among others, urges the government to act promptly to modify energy costs for “those most in need to ensure they can live comfortably in their homes.” 

Specifically, the organisations want energy suppliers to offer a lower, custom-tailored tariff to those on existing programmes such as means-tested and disability benefits, the carer’s allowance, and those who are still struggling to pay their expenses but are not receiving assistance from the welfare system.

According to Age UK research, seven out of ten seniors support a social tariff for low-income households.

The director of Age UK, Caroline Abrahams, stated, “Older people are already struggling to make ends meet, and that’s before the next increase in utility prices in a few months. Many will be unable to sustain additional price increases, and as a result, we fear for their health and well-being.”

In response to the concern that low-income, elderly, and disabled individuals will lose access to energy supplies if they are required to use prepayment meters that they cannot afford to top up, a social tariff is required. This concern has been coincidental with the fact that a number of energy companies have already proposed a social tariff and a modified price limit to mitigate the high bills brought on by the massive increase in wholesale petrol prices.

However, the implementation of a social tariff is not devoid of obstacles.

The optimal method for implementing the tariff would require complex data sharing between energy suppliers, government departments, and administration by a central organisation, most likely a government department or Ofgem, the British energy regulator. Ministers would need to investigate the optimal method for implementing the tariff.