Andy Burnham Urged To Push Energy Social Tariff

Energy is not a luxury. It’s a fundamental necessity that we all need to stay safe and well.

Yet for too many people, an energy bill is a source of dread rather than simply a cost, and yesterday’s energy price cap announcement, pushing the average bill up by £60, will only deepen that anxiety.

As Colin, a member of Fair By Design’s Lived Experience Advisory Panel, explains: “All too often, people struggling financially are viewed as lazy or lacking ambition, but that’s far from the truth.

“Poverty, poor mental health and barriers to engaging with the workforce carry
significant social and financial costs.”

Colin is currently self-employed and works part time, as he has caring responsibilities for his elderly mum and his older brother. These caring responsibilities mean he cannot work full- time.

“For someone like me a social tariff would return the cost of unpaid care work,” he says. “A social tariff would mean I could keep the lights and heating on, and still have something left over.

“It isn’t simply financial assistance. Making my energy bills more affordable would provide me with dignity and recognition that we all have value.”

The Warm Home Discount is a good step towards an energy market that gives people like Colin breathing space. But at the moment it isn’t providing enough breathing space to make a real difference to people’s lives.

The discount currently provides households on means tested benefits with £150 off their energy bill each winter. But the average affordability gap for a household in fuel poverty is around £400.

That’s why we are calling on Burnham’s government to make the Warm Home Discount much more generous in October’s Budget.

The government must also recognise that some households need more help than others.

The Warm Home Discount does not apply to disabled households unless they are on means tested benefits. However, as a report we jointly commissioned last year showed, disabled households in receipt of disability benefits pay £97 more per year on energy than non-disabled households.

We are therefore asking for all disabled households to receive an extra £100.

Alongside this, we, and other consumer organisations, are urging the government to introduce a booster payment for eligible Warm Home Discount recipients who pay by standard credit.

Households on standard credit tariffs that are linked to the energy price cap
currently pay around £143 more per year for their energy than those who pay by direct debit. A booster payment would help to relieve this extra financial burden.

Ultimately, we need a system of energy bill support that is tiered according to income. This would mean that households on the very lowest incomes could receive support worth as much as £700 a year, while those closer to the eligibility threshold might receive a smaller discount, such as £100.

There is no single solution to fuel poverty. But by building on existing support and targeting help where it is most needed, the government can move closer to an energy system that gives everyone the opportunity to live with dignity.

As Colin says: “Society should judge itself on how it treats its poorest. Judgement erodes self-respect and our potential as people, whereas encouragement, trust and practical support are enablers. They help people to contribute more to society.

“Supporting people is not merely compassionate, it benefits everyone, and the potential for a social tariff gives me hope.”

Maria Booker is Head of Policy at Fair By Design.

Colin Saunders is a member of Fair By Design’s Lived Experience Advisory Panel.

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