Birmingham news Government plans new 'social tariff' on energy bills to help poorest households PremierLeague-News.Com

PremierLeague-News.Com - Jeremy Hunt says the government aims to introduce a discount scheme for energy by April 2024

Birmingham news Government plans new 'social tariff' on energy bills to help poorest households PremierLeague-News.Com

PremierLeague-News.Com - Jeremy Hunt says the government aims to introduce a discount scheme for energy by April 2024

Birmingham news Government plans new 'social tariff' on energy bills to help poorest households PremierLeague-News.Com
25 November 2022 - 16:15

PremierLeague-News.Com - Breaking Sport Transfer News ! Chancellor Jeremy Hunt has said that the government is considering the introduction of a ‘social tariff’ for energy bills. There have been growing calls for such a system to provide low-income households with long-term protection against rising energy costs. According to Yahoo News, Mr Hunt told the Treasury select committee this week that the government intended to "work towards" the introduction of a social tariff in the next two years. This tariff would limit energy prices at a lower level for poorer households. In his recent Autumn Statement, Mr Hunt announced another series of targeted cost of living payments for people in receipt of certain benefits. However, he indicated that the government wanted to move towards a different solution for the longer term. READ MORE: When the energy bill discount scheme ends and what happens next What is a social tariff? A social tariff is a special price rate for households meeting certain criteria - for example, income levels, being in receipt of certain DWP benefits and so on. Social tariffs, if introduced, will cap energy prices at a particular level for eligible households. “We know who everyone is, we have a good idea of their circumstances, so it is an efficient way to get people help quickly,” Jeremy Hunt explained. He said that the government hoped to introduce a “social discount” for energy by April 2024. “That means a lot of complicated work to marry the information held by HMRC with the information held by DWP on benefits, and that's a very big operational challenge, but that's the direction of travel we want to go in,” he added.

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. However, from April, this is due to go up to £3,000, while the £400 energy rebate for all households will not be repeated. New cost of living payments for people on some benefits will offer some protection for the poorest households. The government has indicated that it wants to move away from such payments and introduce a longer-term solution to help poorer families with energy prices. How will social tariffs work? A social tariff would fix energy prices at a lower level for low-income households meeting certain eligibility criteria. It is not yet clear exactly how social tariffs will work for energy prices as the government is still considering how to implement the idea, however. Discounted social tariffs are already available from some mobile phone and broadband providers. These tariffs are available to people claiming benefits including Universal Credit, and range from £10 to £20 per month in price. How much will social tariffs save on energy bills? It has been suggested that a social tariff system could reduce energy bills for low-income households by somewhere in the region of £1,000 a year. However, it is not yet known at exactly what level it will fix energy prices for poorer consumers. READ NEXT: Energy bill support you can get from April as prices set to hit £3,000 a year More cash coming for families to help pay for food and energy bills - here's how you can get it Families owe hundreds of pounds to energy suppliers - warning on what you should do to escape debt When energy rebate vouchers expire and what to do if you need a new one What Ofgem's energy price cap means for your bills as regulator hikes cap to £4,279 a year

Source = PremierLeague-News.Com

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