News25.08.23by Grainne CuffeThe new energy price cap is still “far too high for too many”, the Scottish Federation of Housing Associations (SFHA) has warned. Picture: AlamySharelinesThe new energy price cap is still “far too high for too many”, the Scottish Federation of Housing Associations (SFHA) has warned #UKhousing Responding to Ofgem’s announcement today that, from 1 October, the energy price cap would go below £2,000 for the first time since April 2022, the SFHA said there was still “no doubt” that “social tenants across Scotland will struggle to afford to heat their homes or keep the lights on” as winter approaches.
The body is calling for immediate government support.
The new cap means the typical household will pay £1,923 a year from October, down from £2,074 in the previous quarter. The regulator said the drop, to the lowest level since October 2021, reflected further falls in wholesale energy prices “as the market stabilises and suppliers return to a healthier financial position after four years of loss-making”.
But Sally Thomas, chief executive of the SFHA, said: “While any lowering of essential energy costs is welcome, the new cap is still markedly higher than pre-2021 rates – and far too high for too many.
“There’s no doubt that, as we move into the winter months, social tenants across Scotland will struggle to afford to heat their homes or keep the lights on, which simply isn’t right.” Ms Thomas said the new cap did not represent the actual price paid, with overall costs still influenced by the amount of energy used and type of heating system, meaning those who depend on electricity faced much bigger bills.
“And those who are often most vulnerable, for example having to use more energy due to health needs, still face disproportionately higher costs,” she said.
Ms Thomas urged the UK government to provide immediate support and introduce a social tariff, a discounted energy bill for those on low incomes.
She said: “With previous UK government support schemes now ended, we cannot leave people who are already struggling to stay afloat without support.
“We would urge the UK government to reinstate immediate support as winter approaches.
“And we urgently need to see the introduction of a social tariff that would guarantee lower bills in the longer term for those who need it most.”
Last month, the Chartered Institute of Housing also called for a social tariff to help low-income households.
Sign up for our asset management newsletter
