Westminster urged to cut energy bills for those most in need

UK ministers are being urged to provide targeted support for those struggling with unaffordable energy costs.

Alasdair Allan, Scotland’s acting climate action minister, has written to Westminster’s Labour Government, calling for a discounted energy rate for those most in need across the UK.

His appeal follows recommendations from a working group established by the Scottish Government to explore a “social tariff” for energy prices. The group included energy firms such as EON, ScottishPower, Scottish Gas, EDF, Octopus, and Ovo, alongside consumer advocacy organizations like Citizens Advice Scotland and Advice Direct Scotland.

Mr. Allan highlighted the report’s broad agreement across sectors and urged the UK Government to take action. He emphasized that while Scotland had collaborated effectively with energy providers and consumer groups to devise a feasible plan, the key policy tools to implement change remain under Westminster’s control.

“One-off flat rate rebates are insufficient and not a long-term solution,” he stated, urging the UK Government to introduce a unit rate discount, scaled according to need. He argued that the working group’s findings should form the basis of a revised strategy, demonstrating Westminster’s commitment to tackling fuel poverty at its core.

In his letter to UK energy consumers minister Miatta Fahnbulleh, Mr. Allan stressed the urgency of implementing a social tariff—potentially reframed as “targeted bill support”—to shield vulnerable households from high energy costs.

He pointed out that high energy prices are the leading cause of fuel poverty in Scotland, where in 2023, an estimated 34% of households (861,000) faced fuel poverty. This contrasts with approximately 13% (3.17 million) of households in England.

Calling for immediate action, Mr. Allan proposed that a unit rate discount be introduced, with the level of support adjusted based on need. He suggested developing a refined set of criteria, including household income, medical necessity, and rural location, to ensure automatic eligibility for those who qualify.

He underscored that only the UK Government has the legislative authority to regulate energy pricing and called for urgent collaboration between Westminster and Holyrood to accelerate reform.

A spokesperson for the Department for Energy Security and Net Zero responded, stating that "everyone deserves a warm, comfortable home." They pointed to plans to expand the warm home discount, which could assist nearly three million additional households across Britain, including one million families with children, in managing their energy bills next winter.

The spokesperson added that achieving clean energy independence by 2030 is crucial for stabilizing household finances and shielding the UK from fossil fuel price fluctuations.