UK Government confirms new plans for flexible energy tariffs to help households reduce electricity bills
Households will be able to switch to flexible energy tariffs and use smart appliances to help cut electricity bills under plans set out by the UK Government.
Energy minister Michael Shanks unveiled the next steps to give households and businesses more freedom and choice over how and when they use energy as part of aims to make savings of up to £70 billion in system costs by 2050.
The Labour Government wants to offer consumers new ways to take advantage of off-peak, lower electricity prices, through flexible tariffs and smart technology. This includes helping electric vehicle (EV) drivers get discounts on their electricity when using public chargers at off-peak times.
It also plans to ensure suppliers make information on smart tariffs more accessible to consumers, while taking the next steps to offer tailored products and services based on electricity usage.
The so-called Clean Flexibility Roadmap comes as part of the UK's net-zero aims, while also helping lower bills and boosting the resilience of the power network.
Britain will need to shift towards more flexible energy use as the UK becomes more dependent on wind and solar power, such as charging EV batteries when wind is generating a lot of electricity.
Mr Shanks said: 'This roadmap gives households and businesses the choice and control over when and how they use their energy.
'The flexible electricity system we are working to build will help make that a reality for consumers across the country, by supporting them to bring down their bills through using new tariffs and technologies.
'In this way we will protect working people's pockets and ensure they are the first to benefit from our clean power mission.'
A flexibility commissioner will be appointed to lead the policy work, and an annual forum will be set up to track progress on the initiative.
Akshay Kaul, Ofgem's director general for infrastructure group, said: 'A more flexible energy market will be a real game changer, giving households more control over what they pay for their energy.
'Small lifestyle tweaks such as programming a dishwasher or tumble dryer to run overnight when costs are low or charging your electric car during high winds can have a material impact on people's bills.
'At Ofgem we're opening up flexibility markets to bring better tariffs and products to consumers to make cheaper bills a reality.'
The Government has also launched a two-month consultation looking at how more consumers can be supported to use energy flexibly.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Leader Live
16 minutes ago
- Leader Live
Minister insists fuel supplies not under threat despite oil refinery closure
State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – collapsed into administration last month, putting hundreds of jobs at risk. Michael Shanks pledged to support the workers who are facing redundancy, but said there is little action the Government can take to improve the statutory redundancy offer. Speaking in the Commons, he said: 'We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers. 'This has also allowed time for bidders to express an interest in the site. 'Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option.' He added: 'A package has been offered to all those directly employed at the refinery, which guarantees their jobs and pay over the coming months. 'And alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure they have the skills needed and the support to find jobs, for example, in the growing clean energy workforce.' The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland. Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021. Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed the minister for an update on its investigation into the collapse of the company. He also asked: 'What, if any, assessment has been made into the UK's resilience given the steep reduction in our refining capacity over the past six months? 'What, if any, assessment has been made on the increased reliance on imports that will be necessary as a result of the reduction in British refining capacity?' Mr Shanks said fuel supplies had 'adjusted' in the past few weeks, adding: 'Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that.' On the investigation, he said: 'There is not much I can update the House on at the moment, because the insolvency service is carrying out that investigation.' Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see 'the maximum support given to those workers'. Mr Shanks replied: 'We have looked and pushed and pushed to see if there is more action Government can take to change or to give any additional payments. 'It's not possible for Government to do that, not least because the insolvency service has to follow very specific rules in terms of creditors and what their parameters are to operate in the event of an insolvency. 'But I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them.'
The Herald Scotland
16 minutes ago
- The Herald Scotland
More economic trouble is coming. And there's only one escape route
Unfortunately, although politicians say they like economic growth they generally have no idea how to nurture it and often act in ways which seem designed to slow the economy down. The UK Government's latest Employment Rights Bill is a perfect example. There are many things which encourage faster growth: a stable and not stifling regulatory regime, opportunity, social attitudes to wealth creation. In general the direction of travel for these factors is unhelpful but there is another obvious key factor - arguably more powerful than all the rest - which is curiously overlooked. That is the availability of money. For an entrepreneur to turn a great idea into a fledging business takes money and to grow that business into a company which creates jobs and wealth takes more money still. If we look back to the last period of really strong growth in the UK economy, the mid-1980s to about 2007, a lot of favourable factors were at play but the one which mattered most was that money was available in a way which it isn't today. During that time of strong growth Scotland was extraordinarily lucky to have the Bank of Scotland as its key economic facilitator. RBS may have been bigger but it never fostered growth in the same way as the Bank of Scotland did. A business person needing money for growth could go to see their local bank manager, who actually existed and whose job was to grow the bank's business from their branch. If the amount needed was bigger, you went up to the Head Office on the Mound to see somebody, probably called Gavin, Peter or Colin, who took time to understand your business and provided funding to support its growth. There would have been no Stagecoach or Sports Division able to grow rapidly whilst the founders retained control without Bank of Scotland providing finance based not on lending against assets but against the expected cashflows of the business. No public subsidy was involved, no stupid questionnaires to make sure woke targets were being met, just sensible people making commercial decisions which enabled hundreds of companies to get off the ground and grow. Read more It's time to cast aside prejudice and go for the cash Can anyone truly say the Scottish Parliament been a great success? I can't Who will tell the truth? Economically, we are in a mess The financial crisis of 2008 put paid to all that funding for growth and it has never been replaced. What sank RBS and HBOS was not supporting entrepreneurs but the same good old mistake behind almost all banking crises: too much lending against overvalued property. The price of the state bailout though was the dismantling of a support system which had served us well. The UK and Scottish Governments have tried to put in place schemes which provide sources of investment. The SEIS and EIS schemes where investors receive tax relief when investing in young companies is effective, the various government-backed banks including the Scottish National Investment Bank, rather less so. These new schemes provide equity finance whereas most entrepreneurs want debt; they don't want to give up too much control of their companies. Where debt finance is available for companies it now nearly always requires a personal guarantee from the directors of the borrower which acts as a deterrent and negates the whole point of having a limited liability company. What is needed to increase significantly the supply of money to fund growth is to switch the banking system back on as a major provider of risk funding. This won't happen on its own, the UK Government has to give it a shove. The former Bank of Scotland HQ on The Mound (Image: Newsquest) Each of our banks should be given targets for entrepreneurial lending and their progress monitored and reported on regularly. Entrepreneurial lending needs to be defined but its definition should be broad: lending to a company of up to £10million, the company must be a trading company and not own property or land. No personal guarantees allowed. Keep it simple. What the bank should get in return for this lending is that the interest and fees they earn are not subject to corporation tax. One or more banks will see the opportunity to get tax-free revenue by extending loans which are risker in order to help businesses grow. The regulator's instinct to do everything possible to stop such lending must be curbed. Mistakes must be allowed to be made. Not a spectacular initiative for a politician to announce, no ribbons for them to cut but if something like this was introduced it really would help growth.
The Sun
an hour ago
- The Sun
Households on Universal Credit can claim £300 cash this summer holiday – will you get a boost?
HOUSEHOLDS on Universal Credit can claim up to £300 in cash this summer. Hard-up families can claim support through the government's Household Support Fund. 1 The scheme has been extended multiple times, with the latest round running between April 2025 and March 2026. Each council has a share of £742million which it can dole out to residents in need. Eligibility criteria varies but help is usually offered to those on low income or claiming benefits. Households in Doncaster can apply for cost of living cash worth up to £300 to help with a supermarket shop. You must have dependent children to qualify for the support. A dependant child is a child for whom you receive Child Benefit. For example, if you have one dependent child you will receive £100. This rises to £200 if you are a household with two dependent children. If you have three or more kids the amount you receive is £300. To be eligible for the support you must be claiming Universal Credit, Housing Benefit, means tested free school meals or council tax reductions. Families can get FREE washing machines, fridges and kids' beds or £200 payments this summer – and you can apply now If you previously applied for the support, a payment will be made to the bank account using information you previously provided. If you have not submitted an application before you can do so online by visiting, Elsewhere, residents of North Northamptonshire can apply for supermarket vouchers worth up to £320 on August 4. A person who lives alone will be given a voucher worth £150. Meanwhile, a house with two residents could receive £260 for their food shop. If you live in a home with three residents or more you will receive a voucher worth £320. Does every council offer support? The £742million Household Support Fund has been shared between all councils in England. So, if you don't live in this area but are struggling financially or are on benefits you will likely be eligible for help. This is because the fund was originally set up to help those on low incomes or classed as vulnerable. What type of help you can get will vary but it could range from a free cash payment to supermarket vouchers. For example, residents in Worcestershire can apply for support worth up to £500 to help with water and energy costs. Devon County Council has also issued supermarket vouchers worth more than £90 to 22,000 families with children on free school meals. The £90 is equivalent to £15 per week for the six week school holiday. Households in Redcar & Cleveland can also now apply for support worth up to £230. Household Support Fund explained Sun Savers Editor Lana Clements explains what you need to know about the Household Support Fund. If you're battling to afford energy and water bills, food or other essential items and services, the Household Support Fund can act as a vital lifeline. The financial support is a little-known way for struggling families to get extra help with the cost of living. Every council in England has been given a share of £421million cash by the government to distribute to local low income households. Each local authority chooses how to pass on the support. Some offer vouchers whereas others give direct cash payments. In many instances, the value of support is worth hundreds of pounds to individual families. Just as the support varies between councils, so does the criteria for qualifying. Many councils offer the help to households on selected benefits or they may base help on the level of household income. The key is to get in touch with your local authority to see exactly what support is on offer. And don't delay, the scheme has been extended until April 2025 but your council may dish out their share of the Household Support Fund before this date. Once the cash is gone, you may find they cannot provide any extra help so it's crucial you apply as soon as possible.
