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UK housing bodies unite in call for social tariff on energy bills
English, Scottish, Welsh and Northern Irish housing bodies have called on the next government to introduce a new social tariff for tenants struggling with bills.
The proposal, outlined in an open letter to party leaders, aims to support low-income families struggling with their bills in up to six million households across the UK.
Trade bodies backing a discounted energy tariff for social tenants include the National Housing Federation (NHF), the Scottish Federation of Housing Associations (SFHA), Community Housing Cymru (CHC) and the Northern Ireland Federation of Housing Associations (NIFHA).
In May, energy regulator Ofgem announced a price cap for energy bills, with prices now set to drop by 7% on average. However, there are still six million households estimated to be living in fuel poverty in the UK.
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Sally Thomas, chief executive of the SFHA, said: “Whoever forms the next UK government must urgently prioritise ending fuel poverty, which has devastating consequences for the health, well-being and aspirations of millions of people across the UK.
“This much-needed reform of our energy market would lift millions of social tenants and other domestic consumers out of fuel poverty, support the UK’s transition to net zero, and help many rural consumers who are unnecessarily affected by the higher costs of electricity.”
The housing federations, whose members represent more than 4.9 million households in the UK, stressed the importance of the scheme to ensure tenants are lifted out of fuel poverty and are protected from market volatility.
As well as a new social tariff, they called for further support for those in receipt of means-tested benefits and rural energy consumers who are not connected to the gas grid.
Kate Henderson, chief executive of the NHF, said that a social tariff would “not only lift people out of fuel poverty and protect them from market volatility but will also safeguard their health and well-being”.
Stuart Ropke, chief executive of CHC in Wales, stated: “Social housing tenants continue to be among the hardest hit by the cost of living crisis.
“With energy bills still almost double pre-crisis levels, a social energy tariff must be introduced to protect low-income households, enabling people to afford to heat their homes consistently.”
Seamus Leheny, chief executive of NIFHA, said: “NIFHA and our members support this important call on the UK government to introduce a much-needed social tariff.
“As the cost of living continues to force people to choose between heating and eating, a discount on energy tariffs would be fundamental in supporting households in fuel poverty and helping those most in need.”
In response to the joint letter, the Green Party told Inside Housing that it is “committed to the urgent action required to address fuel poverty, which affects millions of households across the UK”.
The party proposes to invest £29bn in modern insulation and efficiency over the next five years, re-nationalise big energy companies to implement these social tariffs more easily, and increase the minimum wage to £15 per hour to help reduce energy costs.
Plaid Cymru, the Scottish National Party, the Labour Party, the Conservative Party and the Lib Dems were approached for a response to the letter.
Last year, a survey of 700 West of Scotland Housing Association tenants found that 95% said they were struggling with the costs of putting food on the table and heating their homes.
Two in five tenants admitted to skipping meals, while 28% are cutting back on fruit and vegetables.
