(Motherwell and Wishaw)
(SNP)
I beg to move,
That leave be given to bring in a Bill to require the Secretary
of State to publish proposals for a social tariff for energy.
During the autumn statement of 2022, the Government committed to
developing a new approach to consumer protection in energy
markets in order to consider the best options, including social
tariffs. That commitment has been repeated multiple times since,
including by the Prime Minister. In April 2023, the Department
for Energy Security and Net Zero reiterated that pledge by
promising to consult on a social energy tariff in the summer of
2023. However, despite multiple commitments, and to the
frustration of many, a consultation never materialised, and as we
are now in February 2024, there is a significant risk that no new
protections will be in place this year. All the while, low-income
and disabled households have struggled to heat their homes over
the festive period and the cold snap in January—and winter is not
over yet.
I am introducing this Bill in an attempt to fight for protections
for the most vulnerable in society. By their continued inaction
on this matter, the Government continue to disregard the real and
immediate concerns of many people. The great need for a social
energy tariff is best demonstrated by the wide and varied support
for its implementation. Disability groups, debt advice groups,
politicians from across the political spectrum, consumer groups,
local authorities, housing providers, Ofgem and even energy
companies are in favour of one.
Such is the united front on this vital issue that it is even more
surprising that the UK Government have failed even to hold the
consultation that they promised. They have continued to bury
their head in the sand, despite the fact that National Energy
Action, Energy Action Scotland, Age UK, Scope, Citizens Advice,
MoneySavingExpert and 150 other organisations, as well as MPs,
wrote to the Prime Minister in September calling for the promised
consultation on a social energy tariff. Now we are into 2024, and
the situation is catastrophic for low-income households. I thank
the many organisations that have provided briefings on this topic
both for my debate in November last and once again today.
You may ask what a social energy tariff is, Mr Speaker.
Admittedly, many different organisations and groups have slight
variations in their approach to such a tariff, but in its most
basic form, which is universally agreed upon, it is a system of
targeted support through a reduction in energy bills for
vulnerable, low-income and disabled households, in response to
incredibly high energy bills. As one in three households will
spend more on energy bills this winter than they did last
winter—a figure that is closer to half for the poorest
households—the need for a social energy tariff cannot be stressed
enough. Citizens Advice research shows that energy bills are 61%
higher than in 2021, while other research suggests that high
energy bills will become the new normal for the rest of the
decade. That highlights the desperate need for more meaningful
long-term support.
When I held a debate on this topic in November, I was heartened
by the cross-party support and atmosphere in Westminster Hall as
Members from across the political spectrum presented a united
front on this matter, each raising the need for longer-term,
targeted support for the most vulnerable households. I was then
immediately disheartened by the lack of a meaningful response
from the Under-Secretary of State for Energy Security and Net
Zero, the hon. Member for Derby North (), and now—over two months
on from that debate, and 14 months on from the Government’s
initial call for a consultation—we are no further along.
Government Members highlight that energy bills have fallen from
last year, but that does not paint a picture of the reality for
many. Even though we are told that the energy market has
stabilised, bills remain sky high, and winter 2023-24 is
projected to be much worse due to the huge levels of energy debt
accrued last year. Ofgem and Citizens Advice research shows that
energy debt is at the highest level ever, and Ofgem’s chief
executive officer, , has said that
“we think there is a case for examining, with urgency, the
feasibility of a social tariff”.
In the absence of an energy bill support scheme this winter, many
people have had to once again choose between heating and eating.
Some conditions require the constant charging of essential
lifesaving equipment, such as oxygen concentrators or feeding
pumps. It is dreadful that, in the UK in 2024, some households
have been forced to self-disconnect, but that is simply not
possible for many disabled households, as they would not
survive.
A coalition of charities—Age UK, Scope, Fair By Design, Mencap,
the Motor Neurone Disease Association and Sense—warns that the
cost of living crisis is still adding huge pressures to household
finances, with millions facing the dilemma of how they are going
to pay their energy bills. Around one in eight households in the
UK—that is 12% of households, or 3.4 million—are experiencing
fuel poverty this winter. Marie Curie shared with me the thoughts
of Rhian, who is terminally ill:
“People with terminal illnesses feel the cold so much more than
the healthy and need to heat their homes. People with terminal
illnesses still have mortgage or rent and bills to pay. There are
no specific benefits offered to help terminally ill people so
they have to carry on working with debilitating symptoms. I live
with incurable terminal cancer. My monthly heating bill is
currently more expensive than my mortgage.”
A social energy tariff is the best way forward. That tariff must
be in addition to the warm home discount and the default tariff
price cap; it must be targeted at the neediest and go beyond the
benefits system, as National Energy Action has estimated that
approximately two thirds of fuel-poor households do not receive
any social security payments. All eligible consumers should be
auto-enrolled using suppliers’ existing data and/or data shared
by the Department for Work and Pensions, and the tariff must
reduce costs for consumers to pre-crisis levels.
We all know that a social tariff will cost money, so it is
essential that those costs are met in a progressive manner. If
not, the tariff risks creating a significant cliff edge, with
those who narrowly miss out being much worse off. National Energy
Action, Citizens Advice and Centrica all say that an energy
social tariff should be funded by general taxation to ensure the
greatest level of fairness. If that cannot be done, low-income
households on the fringes of support must be exempted from paying
towards the social tariff. The Government have said that the new
round of oil and gas licensing would raise money to reduce bills.
A social tariff would have numerous economic benefits; it would
also offset costs, as illnesses brought on by having a cold and
damp home cost the NHS between £500 million and £1.4 billion a
year. Further, increased spending power could boost local
economies, with more money spent on our high streets.
Millions of the most vulnerable households and organisations
spanning all of civil society are shouting from the rafters for
the implementation of a social energy tariff, and the Government
cannot and must not continue to bury their heads in the sand. A
society should be measured by how it treats its most vulnerable,
and this Government, through inaction, are continuing to fail the
most vulnerable households right across the country. There were
4,950 excess winter deaths last year in the UK that were down to
people living in cold and damp houses, and that is why we need
this Bill. Millions of people cannot wait any longer, and that is
why I am asking for support for this motion.
Question put and agreed to.
Ordered,
That , , , , , , , , , , and present the Bill.
accordingly presented the
Bill.
Bill read the First time; to be read a Second time on Friday 15
March, and to be printed (Bill 161).
