Social Tariff Working Group minutes: 26 February 2025

Attendees and apologies

• Dr Alasdair Allan, Minister for Climate Action,
• EDF
• EON
• Scottish Power
• Centrica
• OVO
• Octopus
• The Wise Group
• British Gas Energy Trust (BGET)
• Inclusion Scotland
• Consumer Scotland
• Advice Direct Scotland (ADS) 
• Energy Advice Scotland (EAS)
• Citizens Advice Scotland (CAS)
• Scottish Fuel Poverty Advisory Panel

Items and actions

Opening remarks 

• the chair thanked all stakeholders for attending the final meeting of the group, confirmed the agenda and reminded the membership that the aim is to reach consensus and make recommendations to the UKG on the design of a social tariff mechanism. Energy policy reservations mean that decisions on delivery of a scheme are reserved to the UK Government (UKG)
• the group noted that a consultation on the Warm Homes Discount scheme (WHD) was published on 25 February. The Scottish Government will consider the proposals and any implications for Scotland
• the group agreed the minutes of the previous meeting, subject to minor amends, which will be published on gov.scot

Final report and recommendations

Dr Allan offered invited members to reflect on the working group and final report, issued prior to the meeting and to agree the content of the final report which will be circulated for wider stakeholder engagement. The group offered the following observations: 

• discussions have been productive and focused, bringing together a diverse range of stakeholders in a short period of time 
• the report meets the challenges and demands of an urgently required social tariff mechanism
• the report should highlight the human consequence of high energy prices as well as the benefits of introducing a social tariff 
• the group welcomed the modelling being carried out by Scottish Government and officials should share when ready
• not all people in poverty struggle with energy costs and many people who are not in poverty can struggle to pay energy bills
• any changes to the WHD should not have the effect of restricting the depth of support by appealing to a broader range of consumers but should focus on targeting those who need it most
• the report should highlight that any rebates should be paid in real time and not in arrears, and that this policy is needed in the context of wider reform
• the report should highlight what is meant by the term “Social Tariff” to avoid any misleading impressions
• Scottish energy bills are higher than rest of the UK due to geography and housing stock but it is helpful that this work transfers across the whole of GB 
• it is important to recognise that the recommendations do not reflect a total cap on energy bills but a discount or rebate on unit rates
• where there is a clear differentiation between the Scottish Government position and the recommendations made by the group, this should be clear

Next steps 

• the British Gas Energy Trust (BGET) will convene a round table on Monday 17 March with wider stakeholders to share the recommendations and provide the Minister for Climate Action with a front-line perspective on the final report
• Dr Allan will write to UK Government to share the proposals by end of March. Sharing the proposals is likely to generate media and parliamentary interest. If members do not wish be contacted they should let officials know 
• the Minister put on record his thanks and appreciation for the work of the group and the positive and constructive co-design process that has taken place

Summary of Actions

• the group agreed the minutes of the previous meeting, subject to minor amends, which will be published on gov.scot
• Scottish Government to amend report to reflect discussion and will share a revised version by Friday 28 February
• Scottish Government to make modelling and analysis available to members, expected before the end of March
• Scottish Government to share final report with BGET by no later than 11 March ahead of the roundtable on 17 March
• highlight in the report that any rebates should be paid in real time and not in arrears, and that this policy is needed in the context of wider reform
• consideration of using the term “Social Tariff” when this is not what is intended in practice could be misleading and the report might better highlight this
• where there is a clear differentiation between the Scottish Government position and the recommendations made by the group, this should be clear 
• Dr Allan to write to UK Government to share the proposals by end of March
• sharing the proposals is likely to generate media and parliamentary interest. If members do not wish be contacted they should let officials know