With wholesale energy prices soaring over the past year, an estimated 150,000 extra older households will plunge into fuel poverty this winter making people choose between “cutting down on food” or “turning down their heating,” according to analysis by Age UK.
With around one million older households already living in fuel poverty and tens of thousands more teetering on the brink, the charity is extremely concerned rising energy prices and living costs will lead to some of the poorest pensioners rationing their heating this winter in order to afford higher energy bills.
In its recently launched Cost of Cold campaign, Age UK has issued a stark warning that the number of fuel poor older households could reach over 1.1m by the spring unless the government takes urgent action.
Caroline Abrahams, charity director at Age UK, said: “There’s no doubt that media reports about rising energy bills are filling pensioners on low fixed incomes with absolute dread. More than twenty-five thousand people have told us how worried they are, and some [will] have to choose between cutting down on food or turning down their heating, once the cold weather sets in.
“Our greatest concern is that some older people will not even try to keep their homes adequately warm this winter, for fear of incurring big bills they cannot afford to pay.”
Age UK believes rising inflation and escalating prices are now threatening the standard of living of many older people on low incomes, creating uncertainty and anxiety as winter begins to bite.
To safeguard the most vulnerable this winter and beyond, Age UK is campaigning for the government to:
• Provide a one-off £50 payment to all those eligible for Cold Weather Payments and expedite existing payments so they arrive no later than seven days after a period of cold weather.
• Double the Household Support Fund to £1billion to help safeguard all those on low incomes this winter.
• Take urgent action to get Pension Credit – a vital benefit and passport to a package of extra financial support – into the pockets of all those who are eligible.
• Ensure the energy price cap is enshrined in law in the shorter term, and then move to re-introduce a social tariff into the energy market to offer protection against high energy costs in the medium term.
’I am calling on the government to intervene. It has to do something’
The energy crisis began in August due to the lack of natural gas being produced, as well as an increase in demand from larger countries including China.
This resulted in wholesale prices starting to rise with suppliers being charged much more for their gas and they, in turn, charged their customers more to cover the extra costs.
Now a total of 25 suppliers have collapsed since August, representing half of those in the market meaning customers have been left with little options when switching providers.
Money expert Martin Lewis is calling on the government to "intervene" this winter and warned energy bills will rise by 51 per cent when the price cap is reviewed by the energy regulator Ofgem, with an increase for households from April.
Using analysis from Cornwall Insight, Mr Lewis predicts that for households paying typical bills, it will go from £1,277 to £1,925 a year from April 1. This will be a "seismic" price increase of £600 per year.
Speaking on GMB, Mr Lewis said: “I am calling on the government to intervene. It has to do something. There are lots of people out there who can afford the increase and won’t like it, but there are also millions of people who will be thrown into fuel poverty, who will get close to having that choice between heating and eating."
Shadow chancellor Rachel Reeves is also wanting to see an end to VAT on household heating bills over the winter months.
Ms Reeves said: “Right now, people are being hit by a cost of living crisis which has seen energy bills soar, food costs increase and the weekly budget stretched.”
'We must ensure that turmoil in the wholesale energy market does not translate into tragedy'
Age UK is urging older people to call its free national advice line before turning the heating off or down, to check they are receiving the full package of financial support available to them.
In addition, the charity is urging people to contact their supplier directly to ask about available support including an affordable repayment plan. Energy suppliers have a duty to offer support if people are struggling with bills or debt.
Ms Abrahams added: “The energy price cap offers valuable protection against prices going through the roof, and the government should move quickly to enshrine it in law.
“Above all, we must ensure that turmoil in the wholesale energy market does not translate into tragedy for any older person this winter.”
To contact Age UK's free national advice line, call 0800 678 1602. Lines are open 8 am-7 pm, 365 days a year.
To find out how to keep your home warm in winter click here