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Age Concern's Director General, Gordon Lishman, said:
“By working together instead of separately, the energy companies could make the £50million they have pledged toward social programmes go much further.¹ A £50 rebate for vulnerable older customers² will not solve the problem of fuel poverty but alongside the Winter Fuel Payment it would at least offer some comfort to millions of pensioners facing a bleak winter. Now is the time for action not words – the Government and energy companies must work together to introduce this emergency measure to help the poorest pensioners.

“As part of a wider package of reforms, the Government should also introduce mandatory social tariffs to put an end to the scandal of poorer customers on pre-payment meters being charged more than others."

 

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Notes to editors

1. In April, BERR announced that energy suppliers will spend an additional £225million over the next three years (£50million in 2008) on social programmes to help vulnerable households and those on low incomes to heat their homes. This will bring the suppliers’ annual spending on these programmes up to £150million by 2011.
2. Age Concern and Help the Aged have jointly called for the energy companies to use the £50million they have pledged to fund social programmes this year to fund a ‘fuel voucher’ scheme to help people over 70 and entitled to Pension Credit. For further info, please go to: http://www.ageconcern.org.uk/AgeConcern/C53FD324487C4443A3B0B456827240BA.asp

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 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.