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Patrick South‚ Age Concern’s Head of Public Affairs‚ said:

“Many older people will find it difficult to understand how such enormous profits are being made whilst they are struggling to afford rocketing energy bills. Energy companies say they can’t absorb wholesale price rises‚ but in light of their profits this will sound hollow to the one in three pensioners likely to be in fuel poverty this winter. The Government and energy companies must listen to‚ and act on‚ the concerns of the millions of vulnerable households finding it hard to meet energy price hikes.

“The majority of those in fuel poverty aren’t on a social tariff¹ so protecting these rates from immediate increases is not going to help the poorest customers. Much wider reforms are needed. Introducing mandatory social tariffs is key to ensuring the best deal for the poorest customers. “

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Notes to editors:

• Energywatch estimates 540‚000 consumers are receiving support under the energy suppliers’ social packages. The vast majority of the 4.5 million fuel-poor are‚ therefore‚ not benefiting from these schemes.
  
• As an urgent‚ short-term measure‚ Age Concern and Help the Aged are calling on energy companies to use the extra £50 million they have pledged to social assistance schemes this year to redeem fuel vouchers. Worth £50 each the charities are suggesting these should be sent by the Government to all pensioners over 70 who are entitled to Pension Credit.
  
• The BERR Select Committee’s report‚ published on Monday  called for urgent reform of energy markets and a fundamental rethink on fuel poverty policy
  
• 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 Age Concern’s website at http://www.ageconcern.org.uk/.

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.
  The Government should use statutory powers to abolish unfair pre-payment meter premiums.

FACT FILE

• There are currently 2.1million pensioners living in poverty (after housing costs) – this equates to 2.5million pensioners before housing costs are taken into account.
  
• 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 40% by the end of the year as widely predicted‚ this could increase by 800‚000 to over approximately 3 million.
  
• Almost 1 in 5 UK households – an estimated 4.5 million – are now living in fuel poverty. If energy prices go up by 40%‚ this could rise to around 6 million households.
  
• Energywatch estimates the average annual energy bill is now £1058. Predictions of a 40% increase in energy prices this year could see the average annual energy bill increase to £1481.
  
• 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.
  

Media Contact:
Emma Hayes/Helen Spinney
Telephone:
020 8765 7515/7514
Email:
Media@ace.org.uk