Introduce an unmetered monthly tariff for energy for the elderly and disabled

We want the Government to require energy suppliers to offer a fixed monthly rate, with no per unit charges, for gas and electricity, to elderly and disabled customers.

With the cost of living crisis I believe that the elderly and disabled are those most in need of support at this time. I believe the best course of action that the UK Government can take is to give these groups the right to an 'unmetered tariff' for both gas and electric, charged at a set rate per month. Doing so could help give that group the added security they most desperately need at this time.

Although the Government does not determine the market price of energy, which is set by global market conditions, we are fully aware of the continued impact that high energy prices are having on all consumers.

As part of its commitment to prioritising vulnerable people in response to these rises, the Government committed to providing support for families across the UK last winter through the Energy Price Guarantee (EPG), which places a limit on the price households pay per unit of gas and electricity. This was pledged in the Government’s Autumn Statement published in November 2022.

The Government announced in the Spring Budget 2023 that the EPG would be extended at £2,500 for an additional three months to the end of June 2023. The Office for Budget Responsibility (OBR) has noted that the peak of inflation would have been 2.5 percentage points higher without the EPG [OBR: Overview of the November 2022 Economic and fiscal outlook, 17th November 2022].

We understand that some households include vulnerable people who may be elderly, be disabled or have a medical condition that leads to higher energy costs.

While Integrated Care Systems, set up under the Health & Care Act 2022, are best placed to support their local populace, the Government has additional support in place for those on certain disability benefits:

• Disability Living Allowance

• Personal Independence Payment

• Attendance Allowance

• Scottish Disability Benefits

• Armed Forces Independence Payment

• Constant Attendance Allowance

• War Pension Mobility Supplement

Cost of Living Payments (paid in 2 lump sums of £326 and £324) to more than 8 million low-income households on Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit, with separate one-off payments of £300 to pensioner households alongside the Winter Fuel Payment and £150 to individuals receiving disability benefits. There is also extensive price support available to vulnerable and fuel poor consumers, including Winter Fuel Payments, Cold Weather Payments and the Warm Homes Discount.

The Priority Services Register, which is run by energy suppliers, offers extra free services, such as help if there is a power cut, to people who are of pensionable age, registered disabled, have a hearing or visual impairment or have long term ill-health is a free support service that makes sure extra help is available to people in vulnerable situations.

Government officials are considering potential options, including discounted tariffs, for a new approach to consumer protection in energy markets that will apply from April 2024 as part of wider retail market reforms. As part of this work, the Government is working with disability organisations, assessing the need for specific support for vulnerable people.

The objectives of this new approach will be to deliver a fair deal for consumers, ensure the energy market is resilient and investable over the long-term, and support an efficient and flexible energy system.

As set out in the Energy Security Plan, the Government intends to consult in summer 2023 on options for this new approach that better targets support for those most in need (exact timing to be confirmed). This will give the public an opportunity to feedback on proposed plans.

Department for Energy Security & Net Zero