Ask our Expert

Do I qualify for a social tariff?

Our expert says...

Hello Kelly,

The first thing I recommend is for you to stop worrying that your energy supply will be cut off. This is an extreme measure, and only used as a last resort by most suppliers.

The British energy market has been a bit shaky lately, and experts have warned that families will face bigger bills this winter, following a series of price hikes from the ‘big six’ energy suppliers.

Consequently, this has led to an increase in estimates for fuel poverty levels in the UK. 25% of Brits are expected to have experienced fuel poverty by 2009, spending more than 10% of their household’s income on energy bills.

It may be that you are struggling with your bills because your tariff isn’t the cheapest. You should compare energy tariffs to check. You will definitely save money if you switch from your standard tariff (where paper billing is used) to an online tariff (where bills are sent electronically) as this saves the energy supplier money for which discounts are passed on. Also if you are not already, make sure you pay your bills by direct debit for further savings.

Most importantly you should check to see if you are eligible to be placed on a social tariff. I have detailed below everything you need to know about social tariffs.

What is a social tariff?

As part of the government’s strategy to eradicate fuel poverty by 2016, all energy suppliers now have to offer social tariffs to help their most vulnerable customers cope with the high costs of gas and electricity. And new Ofgem rules stipulate that all social tariffs must be the supplier’s cheapest available deals.

Alongside the government’s fuel poverty strategy, suppliers also agreed to increase their collective spend on social tariffs by £225million between 2008 and 2011 - so if you’re struggling to keep up with the rising cost of heating your home, why not talk to your supplier and see if you can be moved to a cheaper tariff.

Do I qualify for a social tariff?

Social tariffs are available to all households that are disadvantaged financially, and can be categorised as vulnerable. There are currently 2.8 million households* in the UK in receipt of some form of pension credit, and a further 1.5 million non-pensioner households qualify for the Government’s Cold Weather payment. Therefore, around 18% off all British households are entitled to a specially developed social tariff.

While eligibility criteria can vary between suppliers, examples of those who may qualify for a social tariff include:

• A household in receipt of pension credit
• A household in receipt of income support
• A household in receipt of income-based jobseeker’s allowance
• A household in receipt of child tax credit which includes a disability or severe disability element

Households that meet the requirements for a social tariff will have a minimal income, and will be deemed vulnerable through age (elderly or very young) or disability.

Contact your energy supplier to see if you qualify for a social tariff.

What social tariffs are available?>

The Essentials Advanced tariff from British Gas (www.britishgas.co.uk) is the UK’s largest social tariff supplier, and aims to reduce the gas and electricity bills of 750,000 of the company’s most vulnerable customers. The tariff provides extra help to vulnerable customers, particularly those who use prepayment meters, which despite helping people on low-incomes to budget, are often a more costly way to pay for gas and electricity.

E.ON (www.eonenergy.com) has a social tariff, StayWarm, which is specifically designed to help vulnerable customers over the age of 60. It is a fixed-price tariff that keeps costs the same for the 12-months after you’ve signed up.

The Energy Assist tariff from EDF (www.edfenergy.com) is aimed at those customers experiencing fuel poverty or those receiving income support or pension credit. Energy Assist gives vulnerable customers a 15% discount on EDF’s standard energy prices and around 57,000 customers currently benefit from this reduced tariff.

If your annual income is less than £13,500 you might be eligible for the Spreading Warmth tariff from npower (www.npower.com), which offers discounts to customers on a low income and with someone in the household aged over 60, disabled, suffering from a chronic illness or under 16 years old.

EnergyPlus Care from Scottish & Southern (www.scottish-southern.co.uk) offers customers experiencing fuel poverty a 20% discount on their current fuel prices - regardless of which payment method they use.

And the Scottish Power (www.scottishpower.co.uk) Carefree Plus social tariff offers eligible customers a saving of up to £112 on their annual household energy bill.

Read our guide for more information on social tariffs.

What should I do next?

Firstly, you should compare energy tariffs to check if there are cheaper options available to you – you may be on one of the most expensive tariffs especially if you haven’t changed your energy supplier in a while.

Secondly, speak to your energy provider to see what they can do for you. You may be able to switch onto a social tariff if you fit their eligibility criteria.

There are also other energy efficient improvements you can make around your home that can help reduce your bills, without having to switch suppliers.

* National Energy Action, July 2008

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