London Daily

Focus on the big picture.
Monday, Mar 09, 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
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
Four U.S. Strategic Bombers Arrive in Britain as Iran War Intensifies
Soham Murderer Ian Huntley Dies After Violent Attack in High-Security Prison
UK Lawmakers and Experts Condemn Scale of Overseas Human Remains Held in British Museums
Royal Navy Aircraft Carrier HMS Prince of Wales Placed on Standby for Potential Deployment
United Kingdom Confirms U.S. Military Using British Bases for Operations Targeting Iranian Missile Sites
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
×