Landlords urged to back support for ‘life-changing’ social energy tariff

A government minister said in April that the government intends to consult this summer on “options”, including a social tariff that “better targets support for those most in need”. It would form part of a “new approach to consumer protection from 2024”, the minister said.

The proposed scheme, being advocated by campaigners, would involve a discounted energy tariff targeted at low-income, vulnerable and fuel-poor households.

The level would be set below the price of the cheapest available deal on the market, and eligible households would be auto-enrolled so they can receive it without needing to apply, according to the CIH.

Lower-income households have been hit particularly hard by the energy crisis, which has seen prices soar.

Matthew Scott, net zero policy lead at the CIH, said: “The introduction of a social tariff in the energy market could provide a life-changing difference to social housing residents struggling to keep their homes warm.”

Among the benefits for social landlords, the CIH said it will cut the number of “asset management issues requiring costly repairs and maintenance”, improve tenancy sustainability and help decarbonisation as heat pumps and other forms of electric heating will become more affordable for residents.

Mr Scott added: “It is vital that as the government prepares to consult on the design of the tariff, the sector understands the benefits not only to residents but also to social housing organisations.”

A Department for Energy Security and Net Zero spokesperson said: “We covered around half a typical household’s energy bill over winter and with costs falling from next month as the new price cap kicks in, the Energy Price Guarantee will remain in place as a safety net through to April 2024 – with additional help targeted at the most vulnerable.

“As set out in the Autumn Statement, we’re working with consumer groups and industry to assess the best long-term approach to helping vulnerable households, as part of wider market reforms.”