The Rt Hon Rishi Sunak MP
10 Downing Street
London
SW1A 2AA

CC: the Rt Hon Claire Coutinho MP

29 September 2023

Dear Prime Minister

We are writing as a group of consumer organisations and charities to ask for urgent action to introduce a social tariff for energy – something that is desperately needed by millions of struggling households in the UK.

With winter fast approaching, short-term, targeted support is needed to protect the most vulnerable households in and on the edge of fuel poverty. These are people whose bills have become so unaffordable that they are having to make the desperate choice nobody should have to make – between heating and eating. But, as your government has itself acknowledged, we also need to work towards a longer term solution. We are therefore calling on the government to publish the crucial consultation it committed to a year ago on future protection for energy consumers.

Last year’s Autumn Statement promised to “develop a new approach to consumer protection in energy markets, which will apply from April 2024 onwards,” and said that the government “will work with consumer groups and industry to consider the best approach, including options such as social tariffs…” In April, the Department for Energy Security and Net Zero reiterated that commitment, setting out an intention to consult in summer 2023 on the same. Despite these assertions, we are yet to see this consultation materialise.

The energy crisis is not over, and while the wholesale price of gas is falling, energy bills remain sky-high. Today, some 6.6 million households find themselves in fuel poverty after a winter that pushed many into making painful choices and created record amounts of debt. Currently £2.25bn is owed by UK households who are behind on their energy bills, up more than 70% over the past three years.

In the absence of the Energy Bills Support Scheme this winter, households will be facing bills 13% higher than the last, and energy costs are still substantially higher than they were before the crisis started. Forecasts show no sign of relief either – we can expect millions of people in low-income and vulnerable households to suffer many more years living in a cold home, rationing energy, and struggling to cook a hot meal. As families fall behind on bills, they will be faced with the double whammy of facing high costs and trying to drag their way out of energy debt.

This is a long-term problem that requires a sustainable safety net for these people. Anything else will be a costly sticking-plaster. There’s now a significant risk that no new protections will be in place by the time they are desperately needed.

One of the most effective ways the government can address this enduring challenge is through the introduction of comprehensive targeted energy support, sometimes referred to as a social tariff. This would provide a deeper price protection for all households struggling with their energy bills.

This support would have numerous additional benefits for the country and would help meet your five key pledges. A social tariff would help to reduce inflation by bringing down the cost of energy bills. The money saved by households would likely find its way into local economic growth. It would also help slash waiting lists by reducing cold-related illnesses brought on by living in an underheated home.

We now collectively ask you to bring forward the consultation the government promised a year ago and help prevent millions more falling into fuel poverty in this country.

Yours sincerely,

National Energy Action, Age UK, Citizens Advice, Energy Action Scotland, Fair By Design, MoneySavingExpert, and Scope

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This letter is supported by the following organisations: