DAY 15 · PROPOSAL 14 · POLICY 17

Social Energy Tariff

Lower energy costs for households that need the most help.

Manifesto 1.1 proposes a national Social Energy Tariff to reduce the cost of essential household energy for people on lower incomes and households facing greater financial pressure.

The policy is designed as a direct cost-of-living intervention, with support shared across government, the energy sector and the voluntary sector.

Targeted help. Lower bills. A cost-of-living intervention.

The principle behind the proposal

Energy is an essential household cost.

A household with limited income should not face the same burden without additional protection when the cost of keeping a home warm and powered becomes unaffordable.

The Social Energy Tariff would provide targeted help rather than a universal subsidy.

The policy commitment

Major Promise 15 — Protect Low-Income Households

A national Social Energy Tariff will be introduced.

It will be jointly supported by:

Government;
energy companies;
charities;
voluntary organisations.

Eligibility will be based on income and household circumstances.

Four principles for a Social Energy Tariff

1. Focus help where it is most needed

The tariff is intended to target lower-income households and other qualifying households according to their circumstances, rather than reducing prices indiscriminately for every consumer.

2. Reduce bills directly

The purpose is straightforward: make essential household energy more affordable for qualifying households.

For households with the least room in their budgets, reducing unavoidable energy costs can provide meaningful cost-of-living support.

3. Share the cost of protection

Manifesto 1.1 does not place the entire responsibility on one institution.

Central government would support the scheme, energy companies would contribute, and charities and voluntary organisations would form part of the wider support structure.

4. Connect the tariff to wider energy reform

The Social Energy Tariff does not stand alone.

It follows Manifesto 1.1 proposals covering Pragmatic Net Zero, Nuclear Britain and North Sea Oil & Gas.

The next proposal addresses domestic electricity and gas standing charges.

Together, these policies seek to balance:

energy security;
household affordability;
economic resilience;
technological transition;
and longer-term energy reform.

Indicative cost

Budget 3.1 currently gives the Social Energy Tariff an indicative annual programme envelope of:

£2–£4 billion per year.

This remains a working manifesto estimate rather than a Treasury or OBR-certified costing.

Detailed modelling would be required before implementation.

What still needs to be developed

The working manifesto establishes the policy commitment but does not pretend that every implementation decision has already been settled.

Further development would need to determine:

the precise income thresholds;
which household circumstances should affect eligibility;
the level and form of the tariff reduction;
whether qualifying households should be automatically enrolled;
how eligible households are identified;
the precise government contribution;
how energy-company contributions would operate;
and how charities and voluntary organisations complement statutory support.

Part of a wider cost-of-living programme

Manifesto 1.1 treats household energy affordability as part of a wider programme rather than as an isolated problem.

The Social Energy Tariff provides targeted help for households facing greater financial pressure.

The following proposal would abolish domestic electricity and gas standing charges, with legitimate network and administrative costs instead recovered through unit pricing under regulatory scrutiny.

The objective is to reduce avoidable pressure on household budgets while maintaining a secure and workable energy system.

Questions for public scrutiny

Who should qualify automatically for the Social Energy Tariff?
Should eligibility be based only on income, or should disability, household size, age and energy need also be considered?
What form should energy-company contributions take?
How should we prevent those costs simply being passed back to other consumers?
What role should charities and voluntary organisations play without replacing the state's core responsibility?
What level of discount would make a meaningful difference while keeping the scheme financially sustainable?
How should the Social Energy Tariff interact with the proposed abolition of standing charges?

Read. Question. Challenge. Improve.

Manifesto 1.1 is a working public policy project.

Questions, evidence, objections and alternative proposals are welcome.

You do not have to agree with this proposal to contribute to its development.

Source: Manifesto 1.1 Complete Working Master — Part V: Energy, Section 17, Major Promise 15; Budget 3.1.

Campaign release: Day 15 · Proposal 14.

Manifesto master policy: Policy 17 — Social Energy Tariff.

Manifesto 1.1 — A New Settlement for Britain