Financial Wire

Think Tank Calls for UK Social Tariff as Energy Prices Surge

-- British independent think tank Resolution Foundation Monday urged the UK government to accelerate the implementation of a social tariff ahead of winter, to help alleviate the growing burden of rising energy prices on households.

"Higher energy prices due to the conflict in the Middle East are set to deal a blow to British living standards, with market pricing suggesting that the median working-age household will be 480 British pound ($644.62) worse off this year than they would have been if the conflict had not taken place," the organization said.

While some lower income families will see a real-terms rise in living standards after revisions to some social benefits, overall the rise in living standards is now forecast at around 1.2% this year, down from a pre-war estimate of a 2.8% increase.

For higher income households, which were predicted to see a 0.9% rise in average income this year, that will now likely be closer to 0.6%.

With higher energy prices reflecting on utility bills and petrol pump prices, the foundation said a social tariff would protect households from price shocks, especially during winter season, when energy costs typically peak.

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