Major update over social energy tariff being introduced under Labour

A major update has been issued over the possibility of a social energy tariff under the new Labour Party government. UK households face bills rising in January, as part of a new Ofgem energy price cap which will take bills up by £21 on average.

Social tariffs offered discounted energy prices to vulnerable consumers, such as those over 60 or receiving means-tested benefits and aimed to reduce the burden of high energy costs. Starting in 2011, social tariffs were gradually replaced by the Warm Home Discount, which provides a £150 annual reduction on electricity bills for eligible households

The Warm Home Siscount is available to those on certain benefits, this discount can be applied to any tariff, offering flexibility and control over energy expenses. Speaking out, though, experts are calling for a social tariff to be reintroduced.

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Simon Francis is coordinator of The End Fuel Poverty Coalition - a broad coalition of anti-poverty, health, housing and environmental campaigners, charities, local authorities, trade unions and consumer organisations. It is also supported by academics, social enterprises and those working on the front line of fighting fuel poverty.

He told the Big Issue: "With Ofgem themselves warning that high energy bills will last into next winter, ministers must support those most at risk from the ill effects of living in a cold damp home. The solution backed by most charities is a social tariff – a unit discount on bills for those groups who have pre-existing health conditions, disabilities or other vulnerabilities which make them susceptible to the energy prices.

"In the long term, the government has inherited a broken energy system and it will take time to untangle the mess and bring down bills. As a country, we have suffered disproportionately from the energy crisis, due to our over-reliance on volatile oil and gas."

"Without significant investment in energy efficiency and insulation, there will be no way to bring down energy usage and therefore bills," he went on. "Ministers in the energy department understand most of this, they now need the backing of the chancellor and the prime minister to get the job done.

"If they make the right moves, it will be possible for Labour to say that they have brought energy bills down come the next election."