As Iran war drives up cost concerns, thinktank says £3.7bn discount system should be developed before next winter
The UK government is facing calls to spend almost £4bn to launch a “social tariff” providing cheaper energy for poor households amid growing concerns over the Iran conflict.
As households brace for an increase in living costs, the Resolution Foundation said ministers should develop a system of discounted domestic energy bills in time for next winter to protect the most vulnerable households.
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.
In a report that comes as ministers face pressure to intervene on energy bills, 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.
