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Cheaper energy bills could help lift millions out of fuel poverty
['Jade Wright']
South Wales Argus | News
The report for energy firm Ovo by the Green Alliance think tank found a social tariff providing discounted energy bills for low-income households would lift more people out of fuel poverty than current support schemes while also preventing a squeeze on middle earners.
A broader, tiered tariff structure could cut fuel poverty by 19%, increasing to 26% if combined with improved minimum energy efficiency standards in rented homes announced by the Energy Secretary last year, it said.
A more targeted “deep and narrow” social tariff, designed to fully close the average fuel poverty gap for the two lowest income deciles, where fuel poverty is most prevalent, could reduce fuel poverty by 42%.
Fuel-poor households needed an extra £407 a year to escape fuel poverty in 2024 – a 62% jump since 2020, the report said.
Recommended reading:“A social tariff could better protect households from volatile energy prices, which are a particular problem for those with low disposable incomes or unable to reduce their energy demand.
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