Social energy rates could lift 2.2 million vulnerable households out of fuel poverty

Around 2.2 million households will needlessly suffer in fuel poverty this winter after the government failed to introduce a ‘social energy tariff’ to help the most vulnerable in society, a number of UK charities claim.

Around one in eight, or 12 per cent, of people in Britain currently suffer from fuel poverty, the findings show. This equates to 3.2 million households, according to Age UK, which works with the MND Association, Sense, Scope, Fair By Design and Mencap.

Around one in seven, or 15 per cent, of households in Britain with someone with a disability or long-term health condition, the equivalent of 2.1 million households, experience fuel poverty, according to the research.

The social energy rates have been phased out and replaced by the Warm Home Discount Scheme. However, not all households with social rates are eligible for the Warm Home Discount Scheme.

Richard Kramer, CEO of Sense, said: ‘People with complex disabilities and their families skip meals and turn off their heating in the dead of winter, and shockingly almost one in five households (18 percent) told us they don’t . they are cutting their use of essential equipment such as ventilators, feeding pumps and electric wheelchairs in a desperate bid to save money.”

If a social energy tariff had been launched this winter, giving people a 50 per cent discount on their energy bills, the charities claim that 1.4 million people living in a household with someone with a disability or long-term health condition would have been lifted out of fuel poverty.

The surprising figures also claim that one in six older people experience fuel poverty, representing 1.6 million households.

If a social energy tariff were introduced, the charities estimate that 1.3 million people in this category could be lifted out of fuel poverty this winter.

A ‘social energy tariff’ is an energy deal with a discount for people with lower incomes and with specific needs or vulnerabilities.

The introduction of a social rate for particularly vulnerable households could potentially have a broader target group than government measures such as payment of living costs or payment of winter fuel.

The charities claim that a social energy tariff should ‘automatically enroll eligible households’, be mandatory for all suppliers and ‘complement existing consumer protections.’

Eligibility criteria should also include recipients of income-tested means-tested benefits, disability benefits and carer’s benefits, the charities suggest.

Households without access to benefits or who are just above the poverty line should also be eligible for social energy tariffs, the study says.

Action: Age UK and other charities claim a social energy tariff would reduce fuel poverty

Alex Massey, head of campaigns, policy and public affairs at the MND Association, said: ‘This research paints a grim picture of the Government’s failure to support disabled people this winter.

‘Since the promise of a consultation on targeted energy support, people with ALS have collectively spent £2.5 million on their electricity bills for the use and maintenance of medical and support equipment.

‘People are now taking drastic action regarding their own health and wellbeing – more than a quarter (28 percent) have reduced their use of this equipment due to increased energy costs. We call on the government to urgently introduce a social energy tariff to help the most vulnerable households cope with high energy costs.’

Caroline Abrahams, charity director at Age UK said: ‘In January 2024, around 3.4 million over-60s reported that their home was too cold for most or all of the time.

‘It is unacceptable that they are forced to live in these conditions.

‘We need a permanent solution in the form of a social energy tariff to ensure they never face another winter of unmanageable bills. Energy is a basic need and it is time we treat it that way and ensure that everyone can afford enough of it to stay fit, healthy and live decently.’

The charities used the ‘fuel stress’ definition of fuel poverty. According to the charities, this is defined as any household spending more than 10 percent of its household net income on domestic energy.

They added: ‘Our proposed social energy tariff is for households in Great Britain with one or more residents who receive at least one of the means-tested means-tested benefits, disability benefits, care allowance and/or who live below or just above the poverty line. to get a 50 percent discount on their energy bill.’

This is Money has asked the government for comment.