Public want cheaper energy for the vulnerable

Over three quarters (77%) of Brits support the introduction of a social energy tariff for the vulnerable and those on low incomes, according to a new survey.

What is a social energy tariff?

A social energy tariff would offer low-income and vulnerable people discounts on their bills. Groups who might benefit include:

• people on means-tested benefits
• people on disability benefits
• carers
• low-income households struggling with their bills but missing out on benefits

Survey findings

The new survey carried out by energy giant EDF found:

• 59% of those who support a social tariff believe it should be funded through taxes rather than higher energy bills for others
• Only 23% were willing to see their energy bills increase to cover the cost of a social tariff
• Of those willing to see their bills go up, 44% said they would accept an increase of up to £99, 15% would accept an increase of up to £199 and just 4% would accept an increase of over £200. An increase of over £200 would be needed to pay the debt currently owed by EDF customers.
• 84% of people are worried about paying their energy bills this winter, with 35% very concerned

Of those in support of a social tariff:

• 68% said it was necessary due to the cost-of-living crisis
• 59% said it was needed due to rising energy prices
• 48% said the vulnerable and those on benefits need extra support

Call for government action

Phillippe Commaret from EDF said:

“We’re urging the government to push ahead with its plans to launch a social tariff next year and publish a consultation as soon as possible.”

£1.74bn in profits

EDF’s call for the introduction of a social tariff comes after Warm this Winter – a coalition of anti-poverty and green groups – revealed household energy suppliers could rack up £1.74bn in profits over the next 12 months from customers' energy bills.

A report by the group revealed suppliers have seen the amount of profit they’re allowed to make every year on the typical customer on a variable price plan rise from £27 in spring 2017 to a high of £130 at the beginning of 2023. The latest figure is £60.

Tessa Khan from the group said:

“For energy companies to be pocking this money, when bills are still twice what they were and so many people are being pushed into energy debt, is completely unacceptable.”