"The Resolution Foundation said a social tariff worth 3.7bn that subsidises the gas and electricity bills of the poorest households could provide an average 310 for the poorest tenth of households, rising to 520 for a family with high energy needs. It said such an approach would have the most impact while providing value for money amid concern that elevated levels of government borrowing and debt are limiting the chancellor Rachel Reeves's capacity to respond."
"Urging the government to target support for those most in need, the thinktank warned that a blanket approach to protect all households similar to Liz Truss's energy price guarantee after the 2022 Russian invasion of Ukraine would be wasteful or risk leaving poor households behind."
"A social tariff would provide a 21% discount on electricity and gas prices to households with incomes before housing costs that are below 38,000."
The Resolution Foundation urges the UK government to establish a social tariff costing approximately £3.7 billion to provide cheaper energy for vulnerable households. This targeted approach would offer a 21% discount on electricity and gas bills for households with incomes below £38,000, delivering an average £310 support for the poorest tenth of households, rising to £520 for families with high energy needs. The thinktank warns against blanket subsidies like Liz Truss's energy price guarantee, arguing targeted support provides better value for money and protects those most in need. This proposal emerges amid growing pressure on the government to address rising living costs and concerns about elevated government borrowing limiting the chancellor's fiscal capacity to respond.
Read at www.theguardian.com
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