News that the average energy bill will rise by £149 from October is another massive blow for older people still reeling from cuts to the winter fuel allowance.
Energy regulator Ofgem’s decision to increase the price cap on energy by 10% comes hot on the heels of the Chancellor’s decision to halt winter fuel payments for 10 million retired people.
But the National Pensioners Convention believes this is just part of a ‘perfect storm’ of pressures on older people’s already stretched incomes, that will force many into poverty and inevitably risk lives.
Cuts to winter fuel allowance just part of ‘perfect storm’
Jan Shortt, General Secretary of the NPC commented: “The grim consequences for older people of these decisions will be much wider and more devastating than simply the cost of energy.
With an average increase of 10% on household energy, many households will struggle to pay bills; either fall into debt or increase their debt with no strategy from the government to put in place an affordable repayment scheme.
For older people though, the picture is darker. Losing their winter fuel allowance payment effectively means a higher increase in their bills than they would normally expect this winter. Suddenly 10% seems cheap. It isn’t just the energy cost – it is the increase in standing charges which are already off the wall and are a source of profit for energy companies.
The impact on those just above pension credit or on moderate pensionable incomes means more hard decisions to be made on whether to put on the heating or cook hot food.
We know cold, damp homes kill – taken together with a reduced diet of hot food, and we will inevitably see an increased burden on the NHS and care services.
“For some older people will be a choice of reducing their care packages or stopping them altogether with all the consequences that brings. To cut costs they may terminate broadband packages, which means losing internet access, isolating people and making their everyday lives difficult.
They may also have to cut down on travel and other activities that support the well-being of older people.
“All of this creates a perfect storm for millions of older people, and there is no doubt that many will not see the Spring.”
Jan added: “Chancellor Rachel Reeve’s decision to axe the universal winter fuel allowance is short sighted; condemns older people to poverty; risks lives and will cost more than is saved. Those applying for pension credit face a nine-week delay in processing. Even with back-dating, individuals will struggle to pay bills come 1st October.
She should step away from this ill-conceived attack on older people. Meet with the NPC and like organisations; do not presume to understand the lives that older people have and show some compassion for those who have contributed during their working lives to their country. Retirement should not be like this.”
Bill changes in October*
The average household’s energy bill will increase by 10% from 1 October to £1,717 a year.
This represents a 65% increase on prices before the energy bills crisis started.
For older people who had previously received the Winter Fuel Payment, this equates to an increase of 131% on winter 2020/21. It will make some pensioners’ real terms energy bills higher this winter than at any other time.
Gas prices will be capped at 6.24p per kilowatt hour (kWh), and electricity at 24.5p per kWh - up from 5.48p and 22.36p respectively now. A typical household uses 2,700 kWh of electricity a year, and 11,500 kWh of gas
Households on prepayment meters will pay slightly less than those on direct debit, with a typical bill of £1,669
Those who pay their bills every three months by cash or cheque will pay more, with a typical bill of £1,829
Standing charges - a fixed daily charge covering the costs of connecting to a supply - will go up to 61p a day for electricity and 32p a day for gas, compared with 60p and 31p respectively now, although they vary by region
*(courtesy End Fuel Poverty Coalition & BBC News)
ENDS
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