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CIH calls for social energy tariff aimed at low-income households
The Chartered Institute of Housing (CIH) is calling for a social energy tariff across the sector to ensure low-income and fuel-poor households pay a rate they can afford for bills.
The tariff, a discounted energy bill detailed in a new CIH report, would be “tightly” targeted and would ensure that irrespective of Ofgem’s price cap, people on the lowest incomes and most vulnerable to the cold would pay a rate that would enable them to keep their whole homes “warm and safe”.
Between the introduction of Ofgem’s price cap in January 2019 and the end of 2021, the average household paid approximately £100 per month for gas and electricity.
From July 2023, the price cap, which defines how much the average household is likely to pay per year for their energy bills, is £2,074 – almost twice the level it was two years ago.
Recent research showed a 50% increase in the number of social housing residents going without heat to save money in the past 12 months.
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The report – A social energy tariff: the benefits of energy market reform for the social housing sector – argues four main benefits for residents and landlords.
It said it would make energy affordable for low-income, vulnerable and fuel-poor social housing residents, reduce the need for costly repairs and maintenance work for asset management issues such as damp and mould, and improve tenancy sustainability.
The tariff would also contribute to the decarbonisation of social housing stock by making heat pumps and other forms of electric heating affordable to run for residents, according to the report.
The CIH is urging its members and the wider social housing sector to understand the “wide-ranging impact and benefits” a social energy tariff would provide ahead of an anticipated government consultation on the social tariff expected this summer.
Matthew Scott, policy and practice officer at the CIH, said: “Last winter was one of the worst on record, with soaring gas and electricity prices making energy unaffordable for millions of people, creating unprecedented levels of fuel poverty.
“While social housing providers rose to the challenge of providing support for residents who needed it most, the prospect of energy prices remaining high for the rest of the decade means we desperately need a long-term, sustainable solution.
“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.
“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.”
James Prestwich, director of policy and external affairs at the CIH, added: “In the current high-inflationary environment, those on the lowest incomes continue to be hit the hardest.
“It is imperative that, as a sector, we advocate to find solutions that ease the detrimental impact high energy prices are having on both residents and the sector.”
The Department for Business, Energy and Industrial Strategy has been contacted for comment.
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