The Trades Union Congress (TUC) has urged the Labour government to implement an emergency change to energy bills that could save households hundreds of pounds a year. The proposed "social tariff" would reduce annual energy costs based on household income, with low-income families saving up to £559.
Social tariff details
Under the plan, middle-class households would save £373 annually, while higher-income households would receive a 10 percent discount, equivalent to £186. The tariff would be funded by an increased windfall tax on the banking sector.
Paul Nowak, general secretary of the TUC, told the New Statesman: "It's crucial to show working-class people and their families that the government is on their side. With Nigel Farage claiming Reform UK is the party of workers, every government decision must signal support for working people."
Political context
Nowak dismissed Farage's claims of representing workers, saying: "The idea Nigel Farage stands up for working class people is laughable given his voting record, support for Trump, and tariffs. Our members will see through Farage and his ties to corporate interests."
The call comes as the energy price cap rises to £1,862 per year for the average household, an increase of £221 annually. In 2023, the cap peaked at £4,279, though bills were capped at £2,500 during the crisis.
The TUC argues the social tariff would be popular across political lines, appealing to Reform, Labour, and Green voters alike.
