Media centre

Gordon Lishman, Director General of Age Concern, said:

“Ofgem’s action programme is welcome and we support data sharing subject to certain safeguards. But this package will not tackle the escalating fuel poverty crisis. A quarter of a million pensioner households have been pushed into fuel poverty already this year and further price hikes could affect another half a million by the end of the year.¹ This is a clear case of baby steps being taken when giant leaps are needed to solve the problem of fuel poverty.

“Allowing energy companies to have access to people’s personal data so they can target help to those in fuel poverty is clearly controversial. But we feel strongly that the severe pressure of rapidly rising energy prices justifies this kind of action, providing the data is handled by a trusted third party and people are fully informed about the scheme and given the option to opt out.

“Gordon Brown is right to talk to the oil companies about long term measures to reduce fuel prices. But opening new oil fields will not deal with a growing fuel poverty crisis which is hurting pensioners now. The Prime Minister must hold an urgent summit to agree radical new measures to get the Government’s fuel poverty strategy back on track.”

ENDS

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.

Notes to editors:

1. Age Concern estimates 250,000 older households were pushed into fuel poverty by energy price hikes at the start of this year and further hikes of 25% could put a further half a million pensioner households into fuel poverty.

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.
• 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 publishes free fact sheets, including 'Help with heating', 'A brief guide to money benefits' and 'Making the most of your money'.

For general enquiries please contact us.

Journalists contact:

Media contact:
Emma Hayes/Helen Spinney
Telephone:
020 8765 7515/14
Out of office hours:
07071 243 243
Email:
Media@ace.org.uk