Why Andy Burnham’s Next Move Must Be An Energy Social Tariff

Energy is not a luxury. It's a fundamental necessity that we all need to stay safe and well.

Key points

• Colin Saunders is a member of Fair By Design's Lived Experience Advisory Panel.
• That's why we are calling on Burnham's administration to produce the Warm Home Discount much more generous in October's Budget.
• The Warm Home Discount is a good step towards an energy market that gives individuals like Colin breathing space.
• The Warm Home Discount does not apply to disabled households unless they are on means tested benefits.
• Alongside this, we, and other consumer organisations, are urging the administration to introduce a booster payment for eligible Warm Home Discount recipients who pay by standard credit.

Yet for too plenty of residents, an energy bill is a source of dread rather than simply a cost, and yesterday's energy cost cap announcement, pushing the average bill up by £60, will only deepen that anxiety.

As Colin, a member of Fair By Design's Lived Experience Advisory Panel, explains: All too often, individuals struggling financially are viewed as lazy or lacking ambition, but that's far from the truth.

"Poverty, poor mental health and barriers to engaging with the workforce carry significant social and financial costs."

As he has caring responsibilities for his elderly mum and his older brother, colin is at present self-employed and works part time. These caring responsibilities mean he cannot work full- time.

For someone like me a social tariff would return the cost of unpaid care work, he notes. A social tariff would mean I could keep the lights and heating on, and still have something left over.

"It isn't simply financial assistance. Making my energy bills more affordable would provide me with dignity and recognition that we all have value."

In practice, the Warm Home Discount is a good step towards an energy market that gives individuals like Colin breathing space. But right now it isn't providing enough breathing space to create a real difference to people's lives.

In practice, the discount at present provides households on means tested benefits with £150 off their energy bill each winter. But the average affordability gap for a household in fuel poverty is around £400.

For context, the administration must additionally recognise that some households need more support than others.

For context, the Warm Home Discount does not apply to disabled households unless they are on means tested benefits. As a report we jointly commissioned last year demonstrated, disabled households in receipt of disability benefits pay £97 more per year on energy than non-disabled households, nevertheless.

We are therefore asking for all disabled households to receive an extra £100.

Households on standard credit tariffs that are linked to the energy cost cap at present pay around £143 more per year for their energy than those who pay by direct debit. A booster payment would support to relieve this extra financial burden.

Ultimately, we need a system of energy bill backing that is tiered according to income. While those closer to the eligibility threshold might receive a smaller discount, such as £100, this would mean that households on the particularly lowest incomes could receive backing worth as much as £700 a year.

There is no single solution to fuel poverty. But by building on existing backing and targeting assist where it is most needed, the administration can move closer to an energy system that gives everyone the opportunity to live with dignity.

As Colin notes: Society should judge itself on how it treats its poorest. Judgement erodes self-respect and our potential as individuals, whereas encouragement, trust and practical backing are enablers. They support residents to contribute more to society.

"Supporting people is not merely compassionate, it benefits everyone, and the potential for a social tariff gives me hope." Maria Booker is Head of Policy at Fair By Design.

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For now, why Andy Burnham's Next Move Must Be An Energy Social Tariff remains the part of the story worth watching, and further updates are likely as more details are confirmed.