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Gordon Lishman‚ Director General of Age Concern‚ said:

“These enormous price hikes will be a huge blow to millions of people already wondering just how they’re going to pay their bills this winter. We are extremely concerned that the one in three pensioner households likely to be living in fuel poverty by the end of the year will feel forced to cut back on essential food or fuel.

“The Government must seize control of this escalating crisis and take immediate action to ease the pressure on millions of households. As an emergency measure to help alleviate the problem this winter‚ the Government and energy companies should be working together to offer ‘fuel vouchers’ to the poorest pensioners. But in order to stand a real chance of helping the poorest pensioners‚ the Government must make it mandatory for energy companies to offer social tariffs at the cheapest rates.”

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Notes to editors

• 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 last month‚ 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 by visiting our website.

Age Concern’s calls to the Government:

1. The Government’s fuel poverty strategy should be urgently revised‚ with new policies and measures announced as soon as possible.
2. Mandatory social tariffs for vulnerable households‚ which offer the lowest market rate‚ must be made compulsory through the current Energy Bill.
3. 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.
4.  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.
5. The Winter Fuel Payment should be permanently increased to reflect unprecedented energy price increases in recent years.
6. 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.
  

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