Media centre

Age Concern's Director General, Gordon Lishman, said:

"Today’s warning of yet more price hikes for British Gas customers will strike fear into the hearts of millions of pensioners, who will view the one-off increase in next year’s Winter Fuel Payment¹ as scant consolation for their rocketing energy bills. Like the abolition of the 10p tax rate and the impact of the credit squeeze, rising energy prices are causing a huge amount of anxiety for many people. Gordon Brown must prove he is in touch with people’s concerns by holding his own urgent summit to get the Government’s fuel poverty strategy back on track.”

-Ends-

s/92.12.05.08/hs

Notes to editors

¹  The Chancellor Alistair Darling announced a one-off payment of £50 for the over-60s and £100 for the over-80s in this year’s Budget – this will increase next year’s Winter Fuel Payment from £200 to £250 for the over-60s, and from £300 to £400 for the over-80s.

• Age Concern publishes free fact sheets, including 'Help with heating', 'A brief guide to money benefits' and 'Making the most of your money' – available by calling Age Concern’s Information Line on freephone 0800 00 99 66, or visiting our website.

Fact file:

• Older people are more likely to be affected by fuel poverty than any other group. Age Concern estimates there are now more than 2.25 million older households in fuel poverty in the UK. If energy prices go up by 25% by the end of the year as widely predicted, this could increase to 2.75 million.
• Almost 1 in 5 UK households – an estimated 4.5 million – are now living in fuel poverty. If energy prices go up by 25%, up to 5.5 million households, including all pensioners and families on basic benefits, could find themselves living in fuel poverty.
• Energywatch estimates the average annual energy bill is now £1058. Predictions of a 25% increase in fuel prices this year could see the average annual energy bill increase to £1323 – more than double the level of when the Government came to power in 1997.
• Age Concern calculations show that the average fuel bill for someone aged 65-74 has leapt up to £1,010 – 15% of the average income of a 65-74 year old single pensioner. Over 75s in the same position fare little better, with an average annual fuel bill of £891 – 13% of the average income of a single pensioner.
• When the £200 Winter Fuel Payment was first paid it covered over a third of the average fuel bill – it now covers less than a fifth.

Age Concern’s calls to the Government:

• The Government’s fuel poverty strategy should be urgently revised, with new policies and measures announced as soon as possible.
• Mandatory social tariffs for vulnerable households, which offer the lowest market rate, must be made compulsory through the current Energy Bill.
• A commitment to recycle the £400 million in extra VAT revenue the Government is receiving from fuel price increases to fund measures to help those in fuel poverty.
• The Warm Front programme should be urgently reviewed, with funding immediately increased by at least 25% and the maximum grant available under the scheme increased significantly.
• The Winter Fuel Payment should be permanently increased to reflect unprecedented energy price increases in recent years and should also be extended to other vulnerable groups under the age of 60.
• The Government should use statutory powers to abolish unfair pre-payment meter premiums.