Proactive Investors - Calls for a social tariff on energy have gained traction after the government’s £400 discount scheme came to an end on 31 March.
Consumer group Which? estimated that the poorest households would face a £209 rise in energy bills compared to the last financial year as a result.
This is because they use less, so will be unlikely to benefit from falling prices as much as the ‘typical household,’ but will still feel the full hit of reduced support, Which? said.
The typical four-bedroom household will face £135 more on energy bills, Which? calculated, but the poorest 10% will be left paying £209 more.
It called on the government to introduce “a properly targeted energy social tariff,” in order to support the most vulnerable, joining Citizens Advice and MoneySavingExpert founder Martin Lewis in pressuring the government.
A social tariff, already offered by broadband companies for customers on certain benefits, would see people in need granted cheaper bills through subsidies capping how much they are charged per unit of energy.
The government opted to continue its £2,500 energy price guarantee, which subsidises how much households pay suppliers per unit, but ended its umbrella £400 discount – offered to every house.
“It’s hugely worrying that consumers on the lowest incomes could be left over £200 worse off on their energy bills this financial year,” Which? policy director Rocio Concha said, adding urgency was needed.