Energy UK Urges £1.9 Billion Social Discount as Ofgem Cap Nears 4% Rise
Updated
Updated · bbc.co.uk · Aug 22
Energy UK Urges £1.9 Billion Social Discount as Ofgem Cap Nears 4% Rise
2 articles · Updated · bbc.co.uk · Aug 22
Summary
Energy UK said the government should add a £1.9 billion social discount scheme before winter, arguing current support is too weak as household energy bills head higher again.
Cornwall Insight expects Ofgem's price cap, due Wednesday, to rise 4% for October to December after a 13% increase in July, pushing it to a three-year high.
Record arrears underpin the call: Ofgem said customers who had fallen behind owed suppliers £4.7 billion at the end of last winter, before wholesale prices rose further after the Iran war and European heatwaves.
The industry body said the current £150 Warm Home Discount reaches 6 million customers but misses another 2.5 million with higher needs, and a new scheme could deliver up to £450 to some households.
The proposal would require combining income, health and energy-use data and finding funding either through bills or taxpayers, issues likely to test political support despite backing from fuel-poverty charity National Energy Action.
As winter approaches, will the government fund Energy UK’s £1.9bn scheme, or are millions facing record bills with inadequate support?
With UK energy debt hitting £4.7bn, could a £450 social discount save vulnerable families, or just shift costs to the squeezed middle?
Why are billion-pound energy subsidies being prioritized over permanently eradicating fuel poverty through mandatory housing retrofits and mass insulation?