E.ON and Age UK have announced they are temporarily stopping a controversial branded tariff to new and renewing customers.

They said the Age UK two-year fixed tariff would expire tonight.

The decision comes just days after Ofgem said it would look into alleged claims the Big Six supplier paid out £6 million to the charity to promote the more expensive tariff to the elderly.

The two organisations stated: “This decision has been reached on a mutual basis and both organisations retain confidence in the tariff offered to customers. However, due to continued speculation regarding the partnership, both organisations feel it is right to pause and reflect on the best way for both parties to achieve their shared goal of helping customers.”

E.ON said those customers on existing Age UK Enterprise tariffs are unaffected by the move and can continue until their contract end date or move without penalty between its tariffs at any point.

The charity added its commercial partnership with the energy supplier includes a “typical commission to Age UK of £10 for each customer”.

It said: “Our current agreement with E.ON has seen Age UK benefit from some extra financial support to help us navigate the changes in this volatile marketplace, in recognition of our long history of working together.

“We are completely open that profits from our trading companies support Age UK’s charitable work. We work with a wide range of market leading partners and carefully design and select our products and services to ensure they are appropriate for older people and we have very high levels of customer satisfaction.”