London Daily

Focus on the big picture.
Monday, Feb 23, 2026

Calls for social tariff on UK energy bills as rises push extra half million homes into fuel poverty

Calls for social tariff on UK energy bills as rises push extra half million homes into fuel poverty

With global gas prices at 16-year high, cash-strapped consumers are braced for soaring costs this winter
The government faces calls to bring in a social tariff to help struggling households pay their energy bills as soaring prices threaten to drive an extra half a million homes into fuel poverty this winter.

Some of the UK’s biggest energy companies have warned ministers that millions of bill payers will need extra help this winter as the regulator prepares to reveal one of the steepest ever hikes to the energy price cap.

The regulator, Ofgem, is expected to raise prices by about £150 a year for 15m homes using a default dual-fuel energy tariff from October because gas prices have soared to 16-year highs in the past week.

The “unprecedented” global gas market surge could drive Ofgem’s energy cap, which is calculated based on the cost of supplying energy, to a record £1,288 on average a year. It would also add over 500,000 homes to the more than three million already in fuel poverty, according to campaigners.

The looming crisis threatens to deal a particularly heavy blow to families hard hit by the financial fallout of the pandemic by coinciding with the wind-down of government furlough payments by September.

“This is difficult news for all households,” said Jonathan Brearley, the chief executive of Ofgem. “Therefore, my message to energy companies is clear – you need to provide all available help and support to customers who are struggling as a result of this price change.”

Some of the largest energy companies including British Gas, E.ON UK, EDF Energy and Scottish Power have called on the government to legislate for a social tariff for energy, set below Ofgem’s price cap, to help households which are often forced to choose between paying their heating bills or buying food.

Michael Lewis, the chief executive of E.ON UK, said a social tariff should be “one of the top priorities” for new energy legislation next year, and would “signal the government’s intent to deliver a fair and just energy transition to net zero, ensuring no one is left behind”.

Keith Anderson, chief executive of Scottish Power, added that the social tariff should build on the government’s existing warm homes discount, which offers eligible households a £140 energy bill discount each winter but is a “blunt instrument” in tackling fuel poverty.

“I know it’s complicated, and a massive amount of work would need to be done into how it would work, but that’s a sensible place for the industry to get to,” Anderson said.

A social tariff funded by the industry could require each supplier to pay a sum into a central pot based on the number of customers they serve. A discount payment would then be paid back to suppliers based on the number of customers they have in fuel poverty.

For energy suppliers with more customers in fuel poverty, the scheme could add extra costs to their business. Octopus Energy said it would oppose calls for a social tariff. Bulb Energy said it would need to see a detailed plan before it could support a social tariff and Ovo Energy said it had not formulated a view.

An Ofgem spokesperson said: “We know that many families are suffering the economic impact of Covid-19 and that energy bills are on the rise. If anyone is struggling to pay their energy bills, we encourage them to contact their supplier who will discuss options with them.”

A spokeswoman for the government said it was continuing to make “significant progress” in tackling fuel poverty and would “invest £1.3bn to upgrade the energy efficiency of homes, helping low-income families significantly reduce their energy bills”.
Newsletter

Related Articles

0:00
0:00
Close
UK Police Officers Guarded 2010 Epstein Dinner Attended by Prince Andrew, Reports Say
US Trade Representative Affirms Commitment to Existing Tariff Agreements with UK and Other Partners
Activists at the Louvre hung a framed Reuters photograph of Andrew Mountbatten-Windsor slumped in the back of a car leaving a police station on the day of his arrest
The royal biographer said that he expected the police to 'look at the money trail' - including Sarah Ferguson borrowing money from Epstein
A Protestor screams in NYC: “Bill Gates is on the Epstein’s List…”
FBI and Secret Service Hold Press Conference After Shooting Incident at Mar-a-Lago
Mark Zuckerberg Testifies in Trial Over Social Media's Impact on Children's Mental Health
Maggie Oliver exposes Keir Starmer using letters to close child rapists investigations
Kouri Richie's wrote a children’s book to help her sons grieve the death of their father. Now she’ll stand trial for his murder
New York Braces for Major Snowstorm With Up to 18 Inches Forecast and Blizzard Warnings Issued
Mexican Military Kills CJNG Leader Nemesio Oseguera Cervantes as Violence Erupts Across Jalisco
Metropolitan Police Deploys Palantir-Powered AI to Flag Potential Officer Misconduct
UK Parliament Rebukes Police Over Ban on Israeli Football Fans
Britain Emerges Among a Small Group of Nations Without a Religious Majority
UK’s Manufacturing Base at Risk as Soaring Energy Costs Weigh on Industry
Matt Goodwin’s Unconventional Campaign for Reform UK in the Gorton and Denton By-Election
US Military Movements in the UK Spark Speculation Over Preparations Related to Iran Tensions
UK Faces Significant Economic Risk From Trump’s New Global Tariff Regime
UK Defence Secretary Signals Intent to Deploy British Troops to Ukraine
UK Students Mark Lunar New Year as Universities Adjust to New Equality Compliance Rules
UK Government Weighs Removing Prince Andrew from Line of Succession After Arrest
Prince Andrew’s Arrest in UK Rekindles Scrutiny Over US Handling of Epstein Records
Trump’s Strategic Warning to UK Over Chagos Islands Deal Sparks Diplomatic Whiplash
Starmer Government Postpones Local Elections Affecting 4.5 Million Voters
UK Economy Remains Fragile Despite Recent Upturn in Headline Indicators
UK Businesses Face Fresh Uncertainty Following US Tariff Ruling
Reform UK’s Senior Figures Face Scrutiny Over Remarks on Women and Family Policy
UK Electric Vehicle Drive Threatened by Shortage of 44,000 Qualified Technicians
University of Kentucky Trustees Advance Academic Reforms and Approve Coliseum Plaza Purchase
Boris Johnson Calls for Immediate Deployment of UK Troops to Support Ukraine
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
North Korea's capital experiences a significant construction boom with the development of a new city district dubbed 'Pyonghattan'.
New electric vehicle charging service eliminates waiting times
Vox Populi confronts Justin Trudeau at Davos over vaccination policies
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
The mayor of Rotherham in Britain
One day after ex-Prince Andrew's arrest, British police are searching his former home, while U.K. lawmakers will consider introducing legislation to remove him from the line of royal succession
Vandana Shiva reminding the world that Bill Gates did not invent anything.
Italy's PM Giorgia Meloni highlights record employment and economic growth
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
The Impact of U.S. Sanctions on Cuba's Humanitarian Crisis: A Tightening Noose
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
British Co-founder of ASOS falls to his death from Pattaya apartment
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
×