Former Conservative chancellor Jeremy Hunt has proposed a “social tariff” to help households cope with rising energy bills, as a thinktank warned that the economic fallout from the Iran war could leave families nearly £500 worse off this year.
The Resolution Foundation said households were facing higher costs from gas and electricity bills, as well as at the petrol pump. It argued that ministers should speed up work on a social tariff before winter, when energy costs are expected to bite hardest.
The plan would be aimed at lower-income households and would offer targeted support to help cushion the effect of rising prices. The thinktank estimated the cost of the scheme at £3.7bn.
The intervention comes amid broader concern about the pressure on household budgets, with the foundation saying the combination of higher energy and fuel costs is adding to the squeeze on living standards.
Hunt’s proposal adds to calls for a more focused approach to support, rather than broad measures that would spread assistance more widely. The Resolution Foundation said a social tariff could be one way to direct help to those most exposed to rising bills.
With winter still several months away, the thinktank said there was time for ministers to put the policy in place before energy costs become more acute. Its warning suggests that households may continue to face elevated prices if no action is taken.
The discussion reflects the ongoing impact of international events on domestic household finances, with energy markets particularly sensitive to developments linked to the Iran war. For many families, the immediate concern remains how to absorb higher bills while already dealing with tighter budgets.
The proposed social tariff is intended to address that pressure by reducing costs for those least able to pay. The Resolution Foundation’s estimate of a £3.7bn price tag indicates the scale of the support that would be needed to deliver such a measure.
As the government considers its next steps, the question now is whether targeted help can be introduced quickly enough to make a difference before the coldest months of the year.
