“Today’s price cap announcement is more bad news for older people in poverty”

Independent Age Chief Executive, Joanna Elson CBE said:

“Today’s price cap announcement is more bad news for the older people in poverty that have already been subjected to a brutally long and cold winter. We now know that energy prices will rise again by 6%, from an average of £1,738 to £1,849. People in later life on low fixed incomes have stretched their budgets to breaking point during the colder months, and many tell us they don’t have enough money to turn the heating on full stop. Now, their bills rise yet again to amounts they simply cannot afford.

“History cannot be allowed to repeat itself next winter. The UK Government needs to put in place plans that support older people in financial hardship to turn their heating on. Since the changes to Winter Fuel Payment were made in July, our helpline has seen a massive increase in calls regarding the payment, and many of the people we have spoken to have made drastic cutbacks, such as only living in one room and cutting down on food. Far too many older people on low incomes don’t receive Pension Credit and are now falling through the cracks – in the short term, the UK Government should urgently review and widen the financial threshold of the Winter Fuel Payment. 

“In the long-term, the UK Government and Westminster need to work together to ensure the financial security of all people in later life. We are calling on the UK Government to work with Ofgem to establish a social tariff for energy that is well promoted and makes bills affordable. This will go a long way in protecting customers on low incomes from future spikes in cost. There also needs to be a drive to increase take up of social security entitlements, and a consensus formed among all the political parties on the adequate income needed in later life to avoid financial hardship. Once this is determined, plans must be put into place to support everyone to receive this amount. Nobody should be left in the cold.”