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Gordon Lishman, Director General of Age Concern, said:

“Millions of older people are struggling to meet huge hikes in their energy bills. The reliance on switching supplier to get the best deal penalises older people, who are less likely to have access to the best online deals yet are the group most at risk of fuel poverty.

“Social tariffs are supposed to provide help to the poorest customers but even some energy companies have admitted the current voluntary tariffs aren’t working. The extra money promised by energy companies for these schemes is woefully inadequate to the scale of the problem. This will help an estimated 100,000 households, whilst there are likely to be 1.5 million more households in fuel poverty at the end of 2008 than at the start of the year.

“The Government and energy companies must deliver real action now to stop the fuel poverty crisis escalating. This must include making it compulsory for suppliers to offer meaningful social tariffs to vulnerable groups, so that they always get the best deals available.”

ENDS

Notes to editors:

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 receiving the state pension and Pension Credit. 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 receiving basic benefits.
• 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.

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.

 

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