Debate on energy social tariffs

This debate has been rescheduled from 26 October. 

Wholesale energy prices increased rapidly from the second half of 2021 and much of 2022, both globally and in the UK.

The government introduced a number of measures to protect consumers from rising prices, including the Energy Price Guarantee (EPG) and the Energy Bill Support Scheme (EBSS). Under the EPG, the government set maximum prices for gas and electricity which were below those under the existing energy price cap. Under the EBS, every household with a domestic energy connection in GB received a £400 discount on their energy bills for winter 2022 to 2023.

The EPG is set to end in 2024 and the EBSS ended in March 2023. In the 2022 autumn statement in November 2022, the government announced that it would take a “new approach to consumer protection from April 2024” with regards to energy. It said it will “work with consumer groups and industry to consider the best approach, including options such as social tariffs, as part of wider retail market reforms”. The government have not yet published this consultation.

Campaign groups and industry stakeholders have called for more targeted support for the most vulnerable households in the form of an “energy social tariff”. An open letter to the Prime Minister (29 September 2023) calling for a social tariff argues that a social tariff would offer a long-term solution to fuel poverty and could have economic and health co-benefits.

This debate pack sets out different types of proposed social tariffs. It also provides stakeholder commentary on the benefits and challenges of a social tariff, along with relevant Parliamentary Questions and news items.

Relevant Library Briefings 

• Domestic energy prices (September 2023)
• Energy bills and the price cap (September 2023)
• Rising cost of living in the UK (October 2023)
• Gas and electricity prices under the Energy Price Guarantee and beyond (October 2023) 
• Fuel Poverty in the UK (March 2023)
• Local area data: fuel poverty (June 2023)