Energy Social Tariffs

Energy Security and Net Zero – in the House of Commons at on 8 October 2024.

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Photo of Debbie Abrahams Debbie Abrahams Chair, Work and Pensions Committee, Chair, Work and Pensions Committee

What recent assessment he has made of the potential merits of introducing energy social tariffs.

Photo of Miatta Fahnbulleh Miatta Fahnbulleh Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

We know that people are worried about their energy bills going into the winter and that, for a growing number of people, energy is simply unaffordable. We are absolutely determined to take this affordability issue and tackle it head on. There are many different ideas about what a social tariff could look like, and it means different things to different people. We are clear that we will tackle the affordability question and look at the full range of options available to us. But our priority—my priority—this winter is to ensure that families struggling with bills have support through our warm home discount scheme, and to work with energy suppliers to provide support.

Photo of Debbie Abrahams Debbie Abrahams Chair, Work and Pensions Committee, Chair, Work and Pensions Committee

I am grateful to my hon. Friend for her response. I absolutely recognise that energy prices over the last few years have escalated, putting particular pressure on households with low incomes and also those with high energy needs, such as disabled people and pensioners. I agree that the warm home discount scheme is valuable, but it is limited and I am concerned for people with high energy needs but on low incomes, who might fall foul of the system as it stands.

Photo of Miatta Fahnbulleh Miatta Fahnbulleh Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

We have been working flat out with energy suppliers to ensure that they are providing additional support to families who will struggle with bills this winter. In August, I met all the suppliers, and there was a shared commitment to do everything we can to support vulnerable households. We have been working with them, the industry body, Ofgem and Citizens Advice to ensure that there is a proper package of support in place this winter so that we can support families who we know are struggling with their bills.

Photo of Desmond Swayne Desmond Swayne Conservative, New Forest West

Would it not have been better to put that proper package of support in place before the Government withdrew the winter fuel allowance from so many pensioners?

Photo of Miatta Fahnbulleh Miatta Fahnbulleh Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

We are having to clean up the mess that the Opposition left us. Yes, we have means-tested the winter fuel payment, but we have also been clear that we will do everything we can do to support vulnerable households. That is why we have extended the take-up of pension credit and the household support fund, and we are working flat out with energy suppliers to provide additional support to all vulnerable households this winter.

Photo of Rachael Maskell Rachael Maskell Labour/Co-operative, York Central

I thank the Minister for her work. Warm home prescriptions can target that support towards elderly people and those with underlying health conditions, saving our NHS as well as keeping people warm over the winter. The pilot has shown real benefit. Will she meet me to discuss that and other options to keep old people warm this winter?

Photo of Miatta Fahnbulleh Miatta Fahnbulleh Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

We want to work with anyone who will help us reach vulnerable households. I am very happy to meet my hon. Friend to look at the full range of options available.

Photo of Seamus Logan Seamus Logan Scottish National Party, Aberdeenshire North and Moray East

Ofgem’s review of standing charges options paper closed for submissions on 20 September. Can the Minister offer any hope for bill payers in Scotland that they will stop being penalised with the highest standing charges on these islands? When will we see lower charges?

Photo of Miatta Fahnbulleh Miatta Fahnbulleh Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

We as a Government are committed to getting down standing charges. Ofgem has consulted and will report back in due course.