Commons Sense

House of Commons · Westminster Hall

Energy Social Tariffs

23 November 2023 · 4 other contributors · 8,711 words

Opened by Marion Fellows SNP Motherwell and Wishaw

Responding minister: Amanda Solloway

Energy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Marion Fellows raised concerns about energy social tariffs in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about high energy bills impacting disabled and low-income households this winter.
  • The autumn statement did not address concerns adequately, with Ofgem's new price cap leading to a 94 increase per household.
  • Requests made for an urgent consultation on an energy social tariff or reinstatement of the 400 rebate and expansion of cost of living payments eligibility.

Key requests to Government

I ask the Government to urgently commit to a consultation on an energy social tariff in the coming months. If this is not possible, I request that they reinstate the £400 rebate on energy bills and expand eligibility criteria for cost of living payments to include disabled households receiving contribution-based or new-style employment and support allowance.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Marion Fellows SNP Motherwell and Wishaw

I am concerned about the significant impact of high energy bills on disabled and low-income households this winter. With many constituents and disability organisations expressing genuine worry, stress, and anxiety due to rising costs, there is a pressing need for immediate support. The autumn statement failed to address these concerns adequately, with Ofgem's new price cap representing a £94 increase per household. This means that the typical annual bill of £1,928 has risen to £2,023 based on previous criteria. Additionally, 61% higher energy bills compared to 2021 levels and rising debt are causing severe financial strain for those most vulnerable.

Other contributors (4)
  • Alan Whitehead Lab Southampton, Test

    Complimented the contributions made during the debate and emphasised the need for a long-term social tariff to address energy affordability issues. Highlighted Ofgem's recent price cap announcement indicating that bills will remain high for the foreseeable future, stressing the necessity of a social tariff beyond just this winter.

  • George Howarth Lab Dudley North

    Before I call Marion Fellows to move the motion, I remind Members that if they wish to take part in the debate, they must bob.

  • Peter Aldous

    He welcomed the debate on energy social tariffs and acknowledged the current measures, such as the local housing allowance increase. He stressed the need for a long-term solution beyond 2024-25 when the energy price cap is expected to run its course. Aldous cited the Social Market Foundation's report 'Fairer, Warmer, Cheaper' which suggested a lump sum payment social tariff funded through general taxation. He emphasised the importance of improving home energy efficiency alongside introducing such tariffs.

  • Steve McCabe Lab Birmingham, Selly Oak

    Mr McCabe raised concerns about the lack of progress on an energy social tariff despite support from Ofgem and energy suppliers. He highlighted a Scope survey showing that in the west midlands, disabled people were twice as likely to get into debt due to energy costs compared to non-disabled households, with 37% cutting down on food and skipping meals. McCabe also mentioned NHS electricity rebate schemes failing many eligible consumers. Acknowledges the Government's work on prepayment meters and asks if they would consider extending this to households with a disabled person.

Government Response

Amanda Solloway

This is an incredibly important issue, and I thank hon. Members from across the House for their contributions to the informed, interesting and heartfelt discussion. As the Minister for energy, consumers and affordability, I am working really hard to try to bring down bills for households and to tackle fuel poverty as it is clearly the most important thing on my mind. Last winter, we spent £40 billion on an unprecedented package of support for households and businesses, saving a typical family around £1,500 through the energy price guarantee and energy bill support scheme since last October. The Government's support package assists vulnerable people with rising energy bills, including charges incurred by patients dependent on medical equipment as part of their homecare. We have taken additional steps to support those households who face challenges such as living in poorly insulated homes or struggling with cost of living pressures. We are working closely with Ofgem and suppliers to provide better treatment for consumers, including ensuring prepayment meters are not forcibly installed where they should not be. The Government and Ofgem have been working towards a shared priority services register which could make things easier for customers and better prioritise services to vulnerable consumers who are dependent on regular energy supply. We also welcome Ofgem's new rules to ensure all consumers get the service that they deserve, with suppliers required to prioritise vulnerable customers first when requesting help and offering timely repayment plans. The Government continue to stand firm behind energy consumers, especially our most vulnerable households, and will deliver over £94 billion in assistance for 2023-24.

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