Joanna Elson CBE, Chief Executive at Independent Age said:
“Today’s price cap announcement shows that the drop in prices earlier in the year was only a brief moment of respite, and energy prices will rise yet again by 10%, from an average of £1,568 per year to £1,717. As the weather starts to turn colder, older people in financial hardship up and down the country are worried about their budgets. Many are on a low fixed income, and they will now need to find more money to cover their rising energy bills.
“To make matters worse for older people in poverty, this bill increase coincides with the ending of the Winter Fuel Payment for people not receiving Pension Credit. There could be up to 1.2 million older people eligible for Pension Credit who don’t receive it. On top of that, many are just above the eligibility threshold but still live on a low income and struggle to make ends meet. We are incredibly concerned about the people in later life who will be cut off from a vital source of income worth up to £300 at a time when their bills are rising.
“We urge the UK Government to delay its Winter Fuel Payment decision to ensure the lives of older people in financial hardship are not put at risk as we approach winter. Last winter we spoke to too many older people who were forced to make painful cutbacks to reduce their energy bills. We heard distressing accounts of people going to bed in hats and coats and living in only one room as it was cheaper to heat. If the UK Government goes ahead with restricting the Winter Fuel Payment, before it has an effective way to ensure everyone who needs the financial support receives it, this could be the reality for more and more older people.
“Longer term, the new UK Government has an opportunity to help protect older people in financial hardship from future spikes in energy costs by introducing a single energy social tariff. This could provide much needed financial security for the 2 million people in later life currently living in poverty, as well as future generations.”