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Social Tariff

A social tariff is a system of reduced prices or subsidies for certain goods or services that are designed to make them more affordable for low-income or disadvantaged groups. Social tariffs are often used in the context of utilities, such as electricity, water, or transportation, and are intended to help ensure that access to these essential services is not restricted by cost. Social tariffs can be funded by the government, by the companies that provide the goods or services, or through a combination of both. They are often implemented as part of a broader social welfare or poverty reduction strategy and are intended to help reduce inequality and improve the well-being of disadvantaged groups.

Social tariffs have been suggested as a way of countering the cost of living crisis affecting millions of people and families in the UK. They might be applied to energy bills and the costs of broadband services for example.

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